Investing in International Equity ETFs | VIU, XEF, IEFA
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- Опубликовано: 10 июл 2024
- In this video, Justin compares Vanguard's and iShares' international stock market ETFs: VIU, IEFA, and XEF.
The below topics are explained in this international equity ETF tutorial:
0:00 Intro
0:23 Differences between VIU, IEFA, and XEF
2:12 Understanding the various index acronyms (i.e., FTSE, MSCI, EAFE, All Cap, and IMI)
2:46 Size breakdown (i.e., large-cap, mid-cap, small-cap) of companies held by VIU, IEFA, and XEF
3:12 Sector concentration: Canadian vs. international stock markets
3:28 Number of companies included in the international indexes tracked by VIU, IEFA, and XEF
3:51 Market classification differences in the FTSE and MSCI indexes (i.e., South Korea and Poland)
4:19 Historical performance of the FTSE Developed All Cap ex North America Index vs. the MSCI EAFE IMI
4:39 Worst historical losses for EFA, IEFA, XEF, and VIU
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Love your content. Really good quality and organization. You provide useful information in a very direct way and without overextending your videos. Great Work
@Jose Raul Machado Fernandez - We're so thrilled to hear you've been enjoying our content - thank you so much for watching! 🙂
Great video, I wonder how VI compares to VIU. Your videos are very helpful as a Canadian!
Thanks for the clear video. I was interested in xef however international exposure may require heavy monitoring. It's made me re think my risk tolerance.
Hi Justin, thanks for the analysis. I hold XEQT and XINC, 50% of each in my RRIF instead of just XBAL 100%. Any thoughts ?
@Andrew D. - For my retired clients, I tend to hold a mix of investment savings accounts (ISAs) (for cash withdrawals), 1-5 year GIC ladders (to replenish cash holdings when stocks and bonds are down, like in 2022), bond ETFs, and equity ETFs.
For someone already holding XEQT, they could combine this existing equity ETF holding with a combination of ISAs, GICs, and bond ETFs (they would need to determine the right mix for their specific situation).
Hi Justin, thanks for the info! I hold QQQ, VOO, VDY What would you add to diversify? Thank you!
@dmitriy Li - Check out my broad/total market ETF videos - these are the exact ETFs I use in my portfolio, and my clients' portfolios:
ruclips.net/video/1gliqBzbZpc/видео.html
ruclips.net/video/LhCHLaoV9DM/видео.html
ruclips.net/video/UcFUBtCJAM4/видео.html
Hi Justin, I already have VDY, VUN and XEQT in my portfolio..Do I need to add more for International exposure? Thank you so much..
@Tribu Kahu - XEQT has plenty of Canadian and foreign diversification (i.e., U.S., international, and emerging markets equities).
also can you give me your thoughts on VFV +VDY combo? will I be better of with VEQT?
myway8950 - VFV + VDY would be less diversified than VEQT. It would exclude mid/small/micro-cap U.S. stocks, international stocks, emerging markets stocks, and a good chunk of the Canadian stock market.
@@JustinBenderCPM thank you Justin. That helps. I was more looking from a dividend and growth perspective as well since vfv and VDY would give me both.
Is there a difference in how international ETFs are taxed vs international (individual) stocks?
@chrisfitz191 - Dividends from international stocks are taxed at the same rate as dividends from international ETFs (as income).
Can you tell me if ZEQT is safe to invest given its new and total assets is only 20million? I'm worried if I can't sell later after 30 years.
@myway8950 - If trading liquidity of ZEQT is a concern, it shouldn't be. If BMO were to ever shut down ZEQT, you would receive the net asset value for each unit (remember, your investment is the underlying ETFs, and within them, the underlying stocks).
What's your opinion on BMO's ZEA?
@DrewCanole - ZEA is another great option for international equity ETFs (it follows the MSCI EAFE Index). It holds the underlying stocks directly, so it is just as tax-efficient as XEF or VIU. The only downside is that it excludes small-cap stocks, so it is slightly less diversified than XEF or VIU.
Thanks so much! I was wondering why ZEA had way fewer holdings than those two. I think it’s about 800 versus 3000 or so holdings.
Deja vu compared to another one of your videos. Hearing something twice is not a bad thing, but why so much overlap? Either that or AD is setting into my geezer brain.