Vanguard's total international fund is the one-fund pick, and Korea splits the rest

In the year through Thursday, October 1, Vanguard FTSE Developed Markets ETF returned 19.4% and iShares Core MSCI EAFE ETF returned 13.1%, counting dividends. Both own developed-market stocks outside the United States. They finished 6.3 percentage points apart.

AVEA tracks a FTSE index of large, mid-size and small companies, including Canada and South Korea, and charges 0.03%. AIEFA tracks an MSCI index of developed markets outside the United States and Canada, and charges 0.07%, which is 4 basis points more, or 0.04 percentage points.

As of Tuesday, June 30, Vanguard had Korea at 10.2% of AVEA's stocks and Canada at 10.5%. MSCI's factsheet for the EAFE index, as of Monday, August 31, lists its developed markets, and South Korea is not among them. FTSE's country list, as of April 2026, classifies South Korea as developed.

Samsung Electronics and SK hynix were AVEA's two largest holdings. iShares MSCI South Korea ETF, CEWY, a fund of South Korean stocks, returned 132% over that same year. iShares MSCI Canada ETF, AEWC, a fund of Canadian stocks, returned 16.8%.

Schwab International Equity ETF, ASCHF, tracks the FTSE Developed ex US Index, the same family as AVEA, and returned 20.1% at the same 0.03% fee. State Street's developed-markets fund, ASPDW, follows an S&P developed-markets index, holds Samsung Electronics and SK hynix, and returned 19.5%, also at 0.03%.

iShares Core MSCI International Developed Markets ETF, AIDEV, holds Royal Bank of Canada among its largest holdings and tracks an MSCI developed-markets index. MSCI does not classify Korea as developed. The fund charges 0.04% and returned 13.7%.

Our read is that Korea's year, not Canada's similar weight and not a fee gap of 4 basis points, is what separates AVEA from AIEFA.

One fund for stocks outside the United States

Vanguard Total International Stock ETF, AVXUS, owns developed and emerging markets outside the United States, from large companies to small, and charges 0.05%. It returned 17.1%. iShares Core MSCI Total International Stock ETF, AIXUS, owns that same span on MSCI's map, charges 0.07%, and returned 17.3%.

Both held Samsung Electronics and SK hynix, so Korea is in either one. The returns are close enough that the lower fee is the difference you can know before you buy. For one fund, that is AVXUS.

If you split developed and emerging

Then you have to place Korea yourself. The two index providers do not agree on where it sits.

For developed markets with Korea included, AVEA is the broad fund, at 0.03%. For developed markets without Korea, AIEFA is the fund built for that list, at 0.07%.

Emerging markets reverse the choice. iShares Core MSCI Emerging Markets ETF, AIEMG, holds Korea: Samsung Electronics and SK hynix were its second and third largest holdings, behind Taiwan Semiconductor. The fund returned 25.4% and charges 0.09%.

Vanguard FTSE Emerging Markets ETF, AVWO, tracks a FTSE emerging-markets index, and FTSE counts Korea as developed, so Korea is not in this fund. Taiwan Semiconductor was its largest holding, at 14.7%, and the fund returned 10.7% at a 0.06% fee.

The figures are total returns for the year through October 1, dividends included. The last two own Korea either way.

Count Korea once: pair AVEA with AVWO, or AIEFA with AIEMG. If you would rather not manage the pair, AVXUS already owns the whole list of stocks outside the United States.