I *(several decades away from retirement)* have already selected VTI for U.S. stocks and would like to hear your opinion about these international choices
||DBEF|VXUS|
|:-|:-|:-|
|who|Xtrackers MSCI EAFE Hedged |Vanguard Total International|
|Morningstar: Expected Performance|Bronze|Gold|
|Morningstar: Past Performance|5/5|3/5|
|holdings|694|8,554|
|**countries**|developed|developed + developing|
|North America, Europe|more|less|
|Japan|more|less|
|Asia, LatAm, Africa|less|more|
|**sectors (notable diff.)**|||
|Technology |less|more|
|Healthcare |more|less|
|Consumer Defensive|more|less|
|**past performance**|i know i know|not guaranteed|
|2011-2016 bull|\+55%|\+21%|
|2021-2023 bear|\-9%|\-24%|
|2023-2024 bull|\+59%|\+48%|
|2025 YTD|\+5%|\+10%|
|2011-2025 total|\+439%|\+231%|
|expense ratio|0.35%| 0.05%|
Several questions:
- I understand that VXUS is more diversified but is there no limit beyond which it hurts the returns without providing significant benefits? Aren't there lots of problematic companies in VXUS that drag it down, whereas with DBEF it's more selective and focuses on developed nations which have more cash, stronger companies, and better stability?
- What are the cons and pros of DBEF in a taxable account?
- DBEF is hedged. What does this mean now that the dollar has devalued? Will that give DBEF an advantage over VXUS?
- Anything else you would like to share, maybe something other than DBEF and VXUS. The international will be 20%-30% of my portfolio.
Thanks in advance.