VEA vs. IXUS: International Stocks Had a Breakout Year. These 2 ETFs Captured It Differently.

Sara Appino, The Motley Fool

Wed, June 3, 2026 astatine 6:40 AM CDT 4 min read

The Vanguard FTSE Developed Markets ETF (NYSEMKT:VEA) offers a lower-cost way to developed economies, portion the iShares Core MSCI Total International Stock ETF (NASDAQ:IXUS) provides broader planetary diversification including emerging markets.

Both funds service arsenic halfway planetary holdings for U.S.-based investors looking to diversify beyond home stocks. By capturing thousands of companies extracurricular the U.S., these ETFs assistance mitigate the risks associated with a single-country portfolio portion offering vulnerability to antithetic currency movements and economical cycles. While they stock overlapping positions successful planetary giants, their geographic scopes disagree significantly, impacting their hazard profiles and semipermanent maturation potential.

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.

The Vanguard FTSE Developed Markets ETF is the much affordable option, charging little than fractional the interest of the iShares fund. However, the iShares Core MSCI Total International Stock ETF presently provides a higher payout for income-focused investors, with a output spread of 0.20 percent points.

Performance & hazard examination

What's wrong

The Vanguard FTSE Developed Markets ETF (VEA) targets 3,873 stocks crossed developed economies successful Canada, Europe, and the Pacific region. Sector vulnerability includes fiscal services astatine 23%, industrials astatine 19%, and exertion astatine 14%. Its largest positions see Samsung Electronics (KS:005930) astatine 2.26%, ASML (AMS:ASML.AS) astatine 1.78%, and SK Hynix (KS:000660) astatine 1.54%. Launched successful 2007, the Vanguard money has a trailing-12-month dividend of $1.88 per share.

The iShares Core MSCI Total International Stock ETF (IXUS) tracks a broader scale of 4,160 stocks that includes emerging markets alongside developed ones. Key sectors see fiscal services astatine 22%, exertion astatine 18%, and industrials astatine 16%. Top holdings see Taiwan Semiconductor Manufacturing (TW:2330) astatine 4.24%, Samsung Electronics (KS:005930) astatine 2.25%, and SK Hynix (KS:000660) astatine 1.96%. Launched successful 2012, IXUS paid $2.74 per stock implicit the trailing 12 months.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.