The Vanguard Total International Stock ETF (VXUS) and the iShares Core MSCI EAFE ETF (IEFA) represent two distinct strategies for investors seeking international equity exposure. VXUS captures emerging markets, while IEFA focuses solely on developed markets, offering a slightly higher yield and lower volatility, according to Yahoo Finance.

Both ETFs serve as popular vehicles for diversifying portfolios beyond U.S. equities, yet they differ significantly in risk profiles and sector allocations. VXUS, with its more extensive reach into emerging markets, includes over 8,600 stocks, whereas IEFA narrows its holdings to 2,589 stocks from developed markets only, focusing on Europe, Australasia, and the Far East.

Investors should consider their risk tolerance and investment goals when choosing between these options. VXUS provides broader diversification but may introduce additional volatility. In contrast, IEFA’s conservative approach trades off some growth potential for stability. Ultimately, the choice between VXUS and IEFA hinges on individual investment strategies and market outlooks.