iShares Core MSCI EAFE ETF

IEFA

Market cap $169B

The iShares Core MSCI EAFE ETF (NYSEARCA:IEFA) tracks developed markets across Europe, Japan, and Australia, offering exposure to roughly 3,600 stocks outside North America.

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VEA is more affordable, but IEFA offers a higher dividend yield and slightly different sector weights IEFA excludes Canada and holds fewer stocks, while both funds share similar top positions Both ETFs are highly liquid, but VEA has delivered higher recent total returns and slightly lower drawdown over five years These 10 Stocks Could Mint the Next Wave of Millionaires ›

I see Schwab International Equity ETF as a superior buy over iShares Core MSCI EAFE ETF due to its inclusion of Canada and South Korea. SCHF offers lower costs (0.03% expense ratio), better sectoral diversification, and lower volatility, supporting stronger risk-adjusted returns across all time frames. IEFA stands out for its superior liquidity, making it more suitable for frequent traders despite its higher expense ratio and exclusion of key markets.

IEFA has significantly more assets than SPDW. SPDW is less expensive to own, while IEFA offers a modestly higher dividend yield.

IEFA charges a higher fee but delivers a slightly higher dividend yield than SCHF SCHF edges out IEFA on recent returns and shows a slightly smaller five-year drawdown IEFA holds more stocks and offers broader sector diversification, but both funds share similar top holdings

Investors looking for top exchange traded funds (ETFs) to invest in certainly have plenty of options to choose from.

It's been a good year for international equity ETFs. As a category, broad exposure funds tapping into both developed and emerging market equities have delivered outsized gains relative to U.S. markets this year, as well as much sought portfolio diversification.

IEFA and VEA both offer broad developed-market coverage. However, IEFA excludes Canada and carries a higher fee.