For investors who want broad indexed exposure to international developed markets, the MSCI EAFE is a popular benchmark choice.
There are two exchange traded funds that follow the MSCI EAFE. This year, a lower-cost version from Vanguard has seen money move in the door, while a competitor from BlackRock has experienced net outflows.
Vanguard MSCI EAFE (NYSEArca: VEA) has an expense ratio of 0.12%, compared with 0.34% for iShares MSCI EAFE (NYSEArca: EFA). The ETFs track European, Australasian and Far Eastern markets.
The Vanguard fund had total assets of $8 billion at the end of February, while the iShares fund had $39.4 billion, according to data from the ETF Industry Association.
EFA had net outflows of $1.2 billion in the first two months of 2012, while VEA posted inflows of $764 million. [ETF Spotlight: MSCI EAFE]
The bigger iShares ETF is also older, listing in 2001. The Vanguard fund made its debut in 2007.
Although there are other factors to consider when choosing ETFs, such as liquidity, investors appear to be favoring the lower-fee option to track the MSCI EAFE.
Vanguard MSCI EAFE
