Which International ETF Is the Better Buy: iShares’ Developed Market IEFA or Emerging Markets EEM?

IShares Core MSCI EAFE ETF (NYSEMKT: IEFA) offers low-cost, diversified exposure to developed markets like Europe and Japan, whereas iShares MSCI Emerging Markets ETF (NYSEMKT: EEM) targets high-growth developing economies with higher management fees and risk. Borders often choose between established developed markets and rapidly growing emerging economies to diversify their portfolios. While both funds are issued by iShares, they serve distinct roles for an investor, varying significant.