Key Points

The Vanguard International High Dividend Yield ETF and the iShares Core MSCI Total International Stock ETF have surpassed the S&P 500 index over the past year.
The Vanguard fund has topped the iShares fund across the past decade, posting average annual returns of 10.73 percent.
The iShares international ETF spreads holdings more widely across 4,340 stocks.
10 stocks we favor over iShares Trust - iShares Core Msci Total International Stock ETF

Many U.S. investors may overlook this amid all the buzz around artificial intelligence growth in domestic tech, yet America's equity market is not the sole destination for capital. Stocks outside the U.S. have posted solid gains lately. We examine two affordable international equity ETFs that have topped the S&P 500 both year to date and over the trailing twelve months.

The Vanguard International High Dividend Yield ETF has generated a total return near 30.3 percent over the past year, versus 24.3 percent for the S&P 500. The iShares Core MSCI Total International Stock ETF posted a total return near 28.7 percent over the same stretch.

Even with its lag behind the Vanguard vehicle, this iShares international ETF could suit long-term buyers better. We review several reasons below.

VYMI vs. IXUS

Both international ETFs carry modest costs (identical expense ratios of 0.07 percent) and wide diversification; one holds 1,582 equities while the other owns a still broader set of 4,340 equities.

Here is a concise comparison of the metrics:

Metric	Vanguard International High Dividend Yield ETF (VYMI)	iShares Core MSCI Total International Stock ETF (IXUS)
Number of stocks	1,582	4,340
Top five countries	1. Japan: 11.3 percent 2. United Kingdom: 11.3 percent 3. Canada: 8.9 percent 4. Australia: 7.4 percent 5. Switzerland: 7.4 percent	1. Japan: 14.8 percent 2. Taiwan: 8.7 percent 3. United Kingdom: 8.4 percent 4. Canada: 8.2 percent 5. South Korea: 6.96 percent
Top five sectors	1. Financials: 41.9 percent 2. Energy: 9.5 percent 3. Consumer defensive: 6.96 percent 4. Basic materials: 6.8 percent 5. Healthcare: 6.6 percent	1. Financials: 22.1 percent 2. Information technology: 20.5 percent 3. Industrials: 14.8 percent 4. Consumer discretionary: 8.2 percent 5. Materials: 7.4 percent
10-year average annual total returns	10.73 percent (by net asset value)	9.89 percent
Dividend yield (TTM)	3.42 percent	2.83 percent
Expense ratio	0.07 percent	0.07 percent
Price-to-earnings (P/E) ratio	14.41	18.29

Data sources: Vanguard, iShares, Yahoo Finance.

Why choose the Vanguard International High Dividend Yield ETF?

The Vanguard International High Dividend Yield ETF has edged ahead of the iShares fund across the past decade. Its 3.42 percent dividend yield stands out and exceeds many leading dividend index products.

Because it tilts toward high-payout firms, a greater share of the Vanguard holdings sits in developed European markets such as the United Kingdom and Switzerland. Technology names do not appear among its top five sectors; the portfolio leans more toward financials, energy, and similar areas.

If you seek a defensive stance against a potential tech pullback, the Vanguard International High Dividend Yield ETF can allocate capital across varied segments of the global economy. The fund may also trade at a discount, given its P/E ratio of 14.41, below that of the iShares product.

Why choose the iShares Core MSCI Total International Stock ETF?

Although the iShares Core MSCI Total International Stock ETF has trailed the Vanguard fund over ten years, it shows stronger recent momentum. The iShares fund has outpaced both the Vanguard vehicle and the S&P 500 year to date.

The iShares fund carries a lower dividend yield (2.83 percent) than the Vanguard fund, yet that payout still exceeds some top dividend index offerings. Its P/E ratio of 18.29 also sits below the S&P 500 index level of 31.84.

This fund spreads exposure across several thousand more equities than the Vanguard fund. It also carries a heavier technology weighting (20.5 percent of assets), providing exposure to names riding the AI wave, including semiconductor holdings in Taiwan and South Korea.

Why select IXUS over VYMI?

Neither fund ranks among the top international ETFs, and neither appears in my holdings. Still, if forced to pick one, I would favor the iShares Core MSCI Total International Stock ETF for its wider diversification. Broader exposure matters especially when adding international equities.

International investing introduces added uncertainties and risks. No investor can predict which firms, nations, or currencies will lead or lag ahead. The Vanguard fund's higher yield and lower P/E ratio appear attractive. For long-term holders planning to own the position at least five years, however, wider diversification often proves wiser.

Rather than concentrating on any single sector or theme, most investors may benefit from simply owning the broadest possible set of international equities and allowing the market to select winners over time. The iShares Core MSCI Total International Stock ETF achieves exactly that. It supplies a straightforward, low-cost route to a diversified basket of thousands of international equities.

Should you purchase shares in iShares Trust - iShares Core Msci Total International Stock ETF today?

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Ben Gran holds no positions in any equities discussed. The Motley Fool holds no positions in any equities discussed. The Motley Fool maintains a disclosure policy.

The opinions expressed here belong to the author and may not reflect those of Nasdaq, Inc.