International stock ETF comparison

What happened: Vanguard's VEA and iShares' IXUS, both international stock ETFs, performed differently in 2021, with VEA offering a lower expense ratio and IXUS providing exposure to emerging markets. In ETF comparisons, Schwab's SCHE outperformed State Street's SPGM in expense ratio and dividend yield, while SPGM offered broader diversification. Vanguard's VT outpaced State Street's NZAC in expense ratio and returns, but NZAC offered a higher dividend yield. State Street's SPDW beat Vanguard's VWO in expense ratio, dividend yield, and total returns. Vanguard's VXUS and VSS both offered exposure to developed and emerging markets, with VSS generating higher returns. iShares' IEMG outperformed State Street's NZAC in expense ratio and dividend yield, while NZAC focused on climate change. Vanguard's VEA surpassed Schwab's SCHE in expense ratio, total returns, and maximum drawdown. Lastly, iShares' URTH and Schwab's SCHF differed in expense ratio, dividend yield, and market focus, with SCHF focusing exclusively on developed markets.

Market impact: These comparisons highlight the trade-offs investors make between expense ratios, diversification, dividend yields, and market focus. Lower expense ratios can lead to higher net returns, while broader diversification can mitigate risk. Exposure to emerging markets and climate-focused investments may offer growth potential but come with higher risk and potentially lower dividend yields.

What to watch next: Investors should monitor the performance of these ETFs relative to their benchmarks and each other. Upcoming catalysts include quarterly earnings reports from the fund providers, changes in expense ratios or fund structures, and shifts in market sentiment towards emerging markets and climate-focused investments. Additionally, investors should keep an eye on the performance of the underlying markets and sectors these ETFs track.