1 hour ago
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Sarah Sidlow, The Motley Fool
Wed, June 17, 2026 astatine 8:20 AM CDT 4 min read
Both the iShares Core MSCI EAFE ETF (NYSEMKT:IEFA) and the iShares MSCI Emerging Markets ETF (NYSEMKT:EEM) connection planetary equity exposure, but they service antithetic roles successful a diversified portfolio. IEFA tracks developed markets similar Japan and Europe, whereas EEM focuses connected processing nations specified arsenic China and South Korea. This examination helps clarify which determination absorption aligns with your strategy.
Snapshot (cost & size)
Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.
Cost is simply a important differentiator, arsenic the iShares Core MSCI EAFE ETF is overmuch much affordable with a 0.07% disbursal ratio. The iShares Core MSCI EAFE ETF besides offers a higher payout for those focused connected income.
Performance & hazard examination
What's wrong
The iShares Core MSCI EAFE ETF allocates astir 23% to fiscal services, 20% to industrials, and 12% to technology. It holds astir 2,600 positions, and its largest positions see ASML astatine 2.8%, HSBC Holdings astatine 1.3%, and Roche astatine 1.1%. Launched successful 2012, the money has a trailing-12-month dividend of $3.18 per share.
In contrast, the iShares MSCI Emerging Markets ETF is much concentrated, with 43% successful technology, 18.5% successful fiscal services, and 8% successful user cyclical stocks. It reports much than 1,000 holdings, and its apical positions see Taiwan Semiconductor Manufacturing astatine 14.7%, Samsung Electronics astatine 8.3%, and SK Hynix astatine 6.8%. Launched successful 2003, this money has paid $1.21 per stock implicit the trailing 12 months.
For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.
What it means for investors
Investors looking to adhd planetary vulnerability to their portfolios whitethorn find themselves considering 2 iShares options: IEFA and EEM. IEFA provides low-cost vulnerability to developed planetary markets, portion EEM focuses connected emerging economies. That favoritism is important. IEFA's absorption connected developed countries extracurricular of the U.S. and Canada gives you diversification with little risk, but perchance little full upside. It's a immense money with debased fees and an charismatic dividend yield, and it's much diversified crossed dependable industries similar fiscal services and industrials.
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