MSCI EAFE ETF Trails BNY Mellon International Equity ETF by 1.2%
BNY Mellon International Equity ETF returned 34% over one year versus the MSCI EAFE ETF’s 32.8% and 73% over five years versus 66.8%, reflecting a 4 basis-point fee advantage. The MSCI EAFE ETF carries unhedged currency exposures in euros, yen, pounds and francs and sector concentrations.
1. Performance Comparison
Over the past year, the MSCI EAFE ETF returned 32.8%, trailing BNY Mellon International Equity ETF’s 34%. Over five years, it gained 66.8% versus 73% for the peer, highlighting the impact of cumulative fee savings on net returns.
2. Cost Impact
The BNY Mellon fund charges only 4 basis points annually, whereas the MSCI EAFE ETF has a higher expense ratio, resulting in greater cost drag over time. This fee differential accounts for much of the performance gap, especially over multi-year horizons.
3. Risk Profile
Both the MSCI EAFE ETF and its peer carry unhedged currency exposures to the euro, Japanese yen, pound sterling and Swiss franc, meaning a strong dollar can erode returns. Additionally, financial sector weightings in Europe and Asia-Pacific introduce sensitivity to regional credit cycles.