International ETFs: Another Fine Mess

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So, they want you to pick between the Vanguard Total International Stock ETF (VXUS) and the iShares Core MSCI Emerging Markets ETF (IEMG). Honestly, it’s exhausting. Like, I have to choose where to lose money internationally? It’s a racket, I tell you. A racket. They present it all so neatly, these expense ratios and returns…as if that actually means something. It’s all just…noise. Noise designed to distract you from the fact that someone, somewhere, is making a fortune off your attempts to not be completely wiped out.

They’ve laid out this little “snapshot.” VXUS, a paltry 0.05% expense ratio. IEMG, a slightly more aggressive 0.09%. It’s like choosing between two different brands of sandpaper when you’re being slowly eroded. And the one-year returns? 33.16% for VXUS, 38.88% for IEMG. Fantastic. As if past performance is any indication of future results. It’s statistically meaningless, you know? It’s like saying because I had a good tuna sandwich yesterday, I’m guaranteed a good day today. Ridiculous.

Metric VXUS IEMG
Issuer Vanguard iShares
Expense ratio 0.05% 0.09%
1-yr return (as of Feb. 3, 2026) 33.16% 38.88%
Dividend yield 3.18% 2.75%
Beta (5Y monthly) 1.00 0.96
AUM $573 billion $120 billion

And then they tout the dividend yield. 3.18% for VXUS, 2.75% for IEMG. Like that’s going to make a dent in my retirement. It’s a pittance. A pittance! I swear, these financial people think we’re all idiots. They’re probably sitting in mahogany-paneled offices, laughing at us. And the AUM…$573 billion for VXUS? What does that even mean? It just means more people are getting fleeced. It’s a pyramid scheme, disguised as responsible investing.

They then delve into “performance and risk comparison.” Max drawdown, growth of $1,000 over five years… It’s all so…clinical. Like they’re dissecting a frog. “Oh, look, this one lost less money than that one.” Congratulations. You’ve discovered the concept of loss aversion. Groundbreaking.

Metric VXUS IEMG
Max drawdown (5 y) -29.44% -37.11%
Growth of $1,000 over 5 years $1,288 $1,094

Now, let’s talk about what’s inside these things. IEMG, apparently, is all about emerging markets and technology. 27% tech. That’s… concerning. Putting all your eggs in one basket, even a digital one. And their top holdings? Taiwan Semiconductor, Samsung, Tencent. I mean, really? These are the companies we’re trusting with our future? It feels… precarious. And 2,672 holdings? That’s not diversification, that’s chaos.

VXUS, on the other hand, is “broader.” 8,646 holdings. Even more chaos. Financial services, industrials, technology… It’s just a jumbled mess. Taiwan Semiconductor and Tencent are still in there. They’re everywhere! It’s like these companies own the entire international market. And they probably do, if we’re being honest. It’s a conspiracy, I tell you! A conspiracy!

They have a link to a “full guide.” As if a “full guide” is going to solve the fundamental problem: that investing is a rigged game.

So, what does this all mean for investors? VXUS is “maximum international diversification.” IEMG is “solely emerging markets.” It’s like choosing between two different shades of gray. The advantage of VXUS is that it “limits risk.” The advantage of IEMG is that it “could yield higher returns.” It’s a classic hedged statement. They’re covering their bases. They don’t want you to blame them when it all goes south.

Look, if you’re seeking access solely to emerging markets, maybe IEMG is for you. If you’re looking for maximum international diversification, maybe VXUS is the way to go. But honestly? It’s all just a distraction from the fact that the system is broken. Just save your money, and buy a really good sandwich. You’ll be happier in the long run.

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2026-02-23 18:47