- iShares Core MSCI EAFE IMI Index ETF (XEF)
- iShares Core MSCI EAFE IMI Index ETF (CAD-Hedged) (XFH)
- Vanguard FTSE Developed All Cap ex North America Index ETF (VIU)
Q: Which of these three ETFS do you prefer if I was to pick one? I have 25% of my portfolio in USD Equity ETFS so already have some currency diversification.
5i Research Answer:
XEF and XFH offer the same exposure (core EAFE) but XFH is CAD hedged. We like having currency diversification so would side with the unhedged version but it really comes down to preference/comfort in our view. VIU is a similar exposure with similar fees and also CAD hedged. Its hard to have much preference of one over the other but we might side with XEF for the currency diversification.