EEMETF

A Financial Times survey of 94 economists suggests that AI-related productivity gains will be widely shared globally, with developed markets better positioned to adopt AI than emerging markets. Vanguard research projects international developed-market stocks will outperform U.S. stocks over the next 10-30 years. The article recommends buying developed-market ETFs (VEA and IEFA) while avoiding emerging-market ETFs (EEM and IEMG).

Schwab International Equity ETF (SCHF) emerges as the better choice for most investors due to its significantly lower expense ratio of 0.03% versus iShares MSCI Emerging Markets ETF's (EEM) 0.72%, along with superior 5-year returns and lower volatility. While EEM offers concentrated emerging-market exposure with higher growth potential, it carries greater risk and political uncertainty. The two funds target different markets—SCHF focuses on developed non-U.S. economies while EEM targets high-growth developing markets.

International ETFs have delivered strong returns in 2026, with Asian-focused funds significantly outperforming U.S. and European counterparts. Asia 50 ETF surged 41% driven by AI investments, while emerging markets and patent-focused international funds also posted double-digit gains. Europe underperformed due to lower tech concentration compared to the AI-heavy U.S. market, though international stocks remain cheaper on valuation metrics.