The Evolution of Foreign Stock Index Funds
What is the best way to make a selection?
Mentioned: Schwab International Equity ETF™ (SCHF)
, Vanguard Total International Stock ETF (VXUS)
, iShares Core MSCI Total Intl Stk ETF (IXUS)
, iShares Core MSCI EAFE ETF (IEFA)
, SPDR® Portfolio Developed Wld ex-US ETF (SPDW)
, Vanguard FTSE Developed Markets ETF (VEA)
Daniel Sotiroff: Foreign stock index funds have evolved in a few good ways over the past two decades. They now cover a much wider range of markets, and fees have declined to a level similar as U.S.-focused index funds.
Low fees are a starting point when selecting a foreign stock index fund, as low fee index-tracking funds typically prove tough to beat over the long-run. Costs aside, there are some other things that separate good from great.
Daniel Sotiroff does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.