The International Equity category was the least controversial for the panel, as we were unanimous in retaining the existing three picks from prior years and saw no need to add any new ones (apart from the much-discussed here Vanguard asset-allocation ETFs.)
So the returning international equity All-Star ETFs include the two from BlackRock: the iShares Core MSCI All Country World ex Canada Index ETF (XAW) and the iShares Core MSCI EAFE IMI Index ETF (XEF). As noted earlier, the third is Vanguard’s Emerging Markets ETF (VEE).
However, keep in mind that the new Vanguard asset allocation ETFs also include a healthy dose of both international equity (unhedged to the loonie) as well as international fixed income (hedged back to the C$). As the PWL team notes, in all three portfolios Vanguard allocates 30% of the equity mix to Canadian equities and 70% to global equities.
|INTERNATIONAL EQUITIES||Ticker||Management Fee||# of Holdings||Description|
|iShares Core MSCI All Country World ex Canada Index ETF||XAW||0.2||7881||Global all-cap fund that's lower cost and tax efficient|
|iShares Core MSCI EAFE IMI Index ETF||XEF||0.2||2514||Broad coverage of Europe, Japan & Australia|
|Vanguard FTSE Emerging Markets All Cap Index ETF||VEE||0.23||4741||Emerging Markets index that tracks China A shares|