Which International ETF Is the Better Buy: iShares’ Developed Market IEFA or Emerging Markets EEM?

The article compares two international ETFs: iShares Core MSCI EAFE ETF (IEFA), which focuses on developed markets, and iShares MSCI Emerging Markets ETF (EEM), which targets emerging markets. IEFA offers significantly lower fees (0.07% vs 0.72%), higher dividend yield (3.4% vs 1.6%), and better 5-year returns ($1,535 vs $1,479 on $1,000 invested). While EEM showed stronger 1-year returns (14.5% vs 12.4%), the article recommends IEFA as the better starting point for international exposure due to its substantially lower costs, which compound over time.