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Over the past decade, U.S. stocks returned roughly 240.8% while Vanguard Total International Stock Index Fund Admiral Shares (NASDAQ:VTIAX) delivered 147.62%.

A currency-hedged EAFE ETF (HEFA) outperformed a non-hedged version (EFA) by 3% annually over the past decade. A stronger dollar hurts the value of unhedged international stock funds relative to hedged versions.

Institutional money continues to route developed-markets ex-U.S. exposure through iShares MSCI EAFE ETF (NYSEARCA:EFA), and the positioning data reflects a liquidity-driven bid. The smart money's preference for EFA over cheaper alternatives signals how the fund is used, and that utility may not translate to every long-term portfolio.

EFA has dominated international investing for over two decades and commands $75 billion in assets, yet iShares quietly placed a nearly identical fund on its own shelf that most long-term investors have no idea exists.

The defined outcome ETF market, commonly known as buffer ETFs, has grown rapidly in popularity over the last few years, as investors look for funds that explicitly protect against downside risks. In 2022, the stock and bond markets saw a major decline.