The Latest Developments in International Index Funds
What was once a sparse landscape is now overflowing with choice.
Ten years ago, investors who wanted to buy an index fund that invested outside the United States had a fairly simple decision to make. There were only four main contenders providing broad geographical exposure.
Fidelity Spartan International Index (FSIIX) and Vanguard Developed Markets Index (VDMIX)--like quasi-index fund Vanguard Tax-Managed International (VTMGX)--tracked the MSCI EAFE Index. Schwab International Index (SWISX) added a twist. Instead of tracking the MSCI EAFE Index, it owned the 350 biggest companies outside the United States, which gave it a slightly different portfolio, though the differences were not dramatic. Meanwhile, Vanguard Total International Stock Index (VGTSX) added an emerging-markets component to the standard EAFE portfolio.
Gregg Wolper does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.