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Finance & Markets

Looking for International Exposure? iShares' EAFE ETF Beats Vanguard's Emerging Markets ETF on Dividend Yield and Stability

IEFA delivered $1,555 on a $1,000 five-year investment versus VWO's $1,416, though VWO charges a marginally lower 0.06% expense ratio.

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The origin of risk

From the QJE, by Alexandr Kopytov, Mathieu Taschereau-Dumouchel, and Zebang Xu: We propose a tractable model in which risk, at both the micro and macro levels, is endogenous and driven by incentives. In the model, each firm chooses the mean and the variance of its productivity process, as well as how it covaries with the productivity of…

  • Risk emerges from individual and aggregate incentives driving behavior
  • Firms select productivity mean, variance, and correlation with others
  • Larger firms and lower markups exhibit lower volatility and correlation

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