- Vanguard FTSE Developed All Cap ex North America Index ETF (VIU)
- Vanguard FTSE Developed Europe All Cap Index ETF (VE)
Q: ETF questions
1. When we look at charts or reports about the performance of an ETF, does the return include dividends received and net of all fees? For example. The TSX composite had an annualized return of about 5% over the past 10 years but it also pays a dividend of approximately 3%. Is the annualized return a total of 5% (as dividends are included in this figure and are re-invested) or is it about 8%.
2. To minimize duplication, which ETF (orETFs) would you suggest for international exposure if an S&P ETF is already planned for (or does it suffice to have US and Canadian ETF exposure as they are quite broad and many US companies already have international exposure).
Thanks again.
1. When we look at charts or reports about the performance of an ETF, does the return include dividends received and net of all fees? For example. The TSX composite had an annualized return of about 5% over the past 10 years but it also pays a dividend of approximately 3%. Is the annualized return a total of 5% (as dividends are included in this figure and are re-invested) or is it about 8%.
2. To minimize duplication, which ETF (orETFs) would you suggest for international exposure if an S&P ETF is already planned for (or does it suffice to have US and Canadian ETF exposure as they are quite broad and many US companies already have international exposure).
Thanks again.
5i Research Answer:
Including dividends, the annualized return is closer to 8% (7.8%) over ten years. We can't speak for other data providers and in most cases, it is typically price return quoted as the data is more accessible and easy to find vs total return.
For international ETF exposure we might consider VE or VIU as a diversified, more international exposure.