According to YCharts the Franklin International Dividend Booster Index ETF (XIDV) has returned 8.95% year-to-date, narrowly outperforming the iShares Core MSCI EAFE ETF (IEFA), which is up 8.75% over the same period. At first glance, the difference may appear modest.
IEFA offers higher recent returns and a significantly higher dividend yield than SPGM. SPGM provides broader global exposure including U.S. and emerging markets, while IEFA focuses on developed markets outside North America.
IEFA carries an identical expense ratio to IXUS but offers a slightly higher dividend yield. IXUS delivered a stronger 1-year return and covers a broader set of international stocks, including emerging markets.
Even with an impressive run that's seen the MSCI EAFE Index easily outpace the S&P 500 since the start of last year, the widely followed gauge of ex-US developed market equities sports a trailing 12-month dividend yield of 3.36%, or about triple what's found on the domestic benchmark.
The iShares Core MSCI EAFE ETF (NYSEARCA:IEFA) tracks developed markets across Europe, Japan, and Australia, offering exposure to roughly 3,600 stocks outside North America.
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The iShares Core MSCI EAFE ETF invests in developed markets outside the U.S. and Canada, principally Japan, the United Kingdom, France and Germany. IEFA has outperformed the S&P 500 so far in 2025, benefiting from low starting valuations and a weak U.S. dollar. Looking ahead to 2026, I estimate that GDP growth in countries where IEFA invests should accelerate to 1.23%, up from 1.01% in 2025.
One of the top-of-mind themes for advisors and investors in 2025 has been the resurgence of international equities. As of October 10, the widely followed MSCI EAFE Index was higher by 24.1% since the start of the year.
The iShares Core MSCI EAFE ETF invests in developed market equities outside the United States and Canada. I estimate countries in which IEFA invests will only deliver 1% GDP growth in 2025, 0.4% weaker than the United States. Even so, compared with the SPY, IEFA offers a more attractive earnings and dividend yield, more than offsetting weaker future growth.
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