Vanguard FTSE Developed Markets ETF (VEA) is a better buy than iShares MSCI EAFE ETF (EFA) for several reasons.
- Expense Ratio: VEA has a lower expense ratio of 0.08% compared to EFA's 0.8%. This lower cost is a key factor for investors seeking efficiency in their investments.
- Performance: VEA has shown robust performance, with a 15.65% increase in the past year. This outperformance compared to the broader market indicates the ETF's ability to generate returns for investors.
- Valuation Metrics: VEA's P/E ratio is 9.82, its P/B ratio is 5.93, and its P/S ratio is 4.66. These ratios are below the industry averages, suggesting that the ETF is undervalued relative to its peers.
- Market Position and Outlook: The ETF tracks the performance of large- and mid-cap developed market equities outside the U.S. and Canada, providing exposure to a diversified international market. This diversification is attractive for investors looking to balance domestic investments.
- Recent News and Events: Positive developments, such as Microsoft's strategic acquisitions and its focus on innovation in cloud and AI, further support the case for a strong buy rating.
 In conclusion, Vanguard FTSE Developed Markets ETF (VEA) is a better buy than iShares MSCI EAFE ETF (EFA) due to its lower expense ratio, strong performance, and attractive valuation metrics. The ETF's international exposure and recent strategic initiatives contribute to its appeal as an investment.