Related: The 5 Best Performing ETFs of 2017
The Vanguard FTSE Developed Markets ETF (NYSEArca:VEA) added $10.0 billion so far this year. The FTSE Developed Markets ETF follows the FTSE Developed All Cap ex US Index. Unlike the MSCI developed markets options, this FTSE index includes Canada exposure, along with major markets of Europe and Pacific regions. Canada makes up 8.0% of the fund’s underlying portfolio.
Lastly, the iShares MSCI EAFE ETF (NYSEArca:EFA) experienced $9.5 billion in net flows this year. The ETF tracks the benchmark MSCI EAFE Index. While EFA may many similarities with the other developed market-related ETFs listed above, VEA and IEFA include small-cap exposure that may provide better diversification benefits. Furthermore, IEFA comes with a much cheaper 0.08% expense ratio, compared to EFA’s 0.33% expense ratio.
Related: The Best Performing ETF of 2017 Is…
The preference for low-cost ETF investments has been an ongoing theme in the fund industry as more investors shift away from costlier options in favor of low expenses to maximize potential returns. This is also reflected by ETF investor’s increasing demand for IVV, which has a 0.04% expense ratio, compared to 0.10% expense ratio for the much larger and more widely recognized SPDR S&P 500 ETF (NYSEARCA:SPY).