VXUS Offers Broader Global Exposure Than IEFA
The Motley Fool
by newsfeedback@fool.com (John Ballard)February 14, 2026
AI-Generated Deep Dive Summary
Vanguard’s VXUS ETF offers broader global exposure compared to iShares’ IEFA ETF, primarily due to its inclusion of emerging markets. While both funds aim to provide international diversification beyond the U.S., VXUS tracks thousands of stocks across developed and emerging markets, whereas IEFA focuses solely on developed markets outside the U.S. and Canada. This distinction is crucial for investors seeking different levels of global exposure.
The cost efficiency and performance of these ETFs differ as well. VXUS typically has lower expense ratios compared to IEFA, making it a more affordable option for long-term investors. However, IEFA’s narrower focus on developed markets can result in less volatility, as emerging markets tend to be riskier but offer higher growth potential. Investors should consider their risk tolerance and diversification goals when choosing between these ETFs.
Beta measures price volatility relative to the S&P 500, with lower beta indicating reduced volatility. VXUS has a slightly higher beta than IEFA, reflecting its broader market exposure. Performance-wise, both ETFs have shown strong returns over the trailing year, but VXUS’s inclusion of emerging markets can lead to more significant fluctuations during market downturns.
For readers interested in finance and investing, understanding these differences is essential for building a diversified portfolio that aligns with their financial goals and risk appetite. By comparing cost
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Originally published on The Motley Fool on 2/14/2026