Cheapest International ETFs
It’s a great big world, and there’s no easy way to slice and dice the players. But the cheapest funds with the biggest footprint tend to be developed-market ETFs that focus on large-cap stocks in major economic regions. This avoids challenging frontier markets and under-the-radar stocks that are small and very volatile, but also allows for cheaper exposure because there are not as many logistical problems to overcome when researching or buying holdings.
The winner among global large caps when it comes to cost is, once again, Vanguard. Its Vanguard FTSE All-World ex-US ETF (VEU) charges just 0.15% in expenses — cheaper than even domestic small-caps. It also has a very global flavor, excluding picks domiciled in the U.S. even though it clearly has a footprint in America with multinationals like consumer king Nestle (NSRGY) and healthcare stock Novartis (NVS).
iShares is close behind with its iShares Core MSCI Total International Stock ETF (IXUS), which also excludes the U.S. but is a tiny bit more expensive with 0.16% in expenses. It also is benchmarked to an MSCI (MSCI) index vs. an FTSE one.
Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at firstname.lastname@example.org or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.