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DH and I need to add international exposure to both of our Roth IRAs. Neither of us will buy Vanguard Total International Market Index Fund (VGTSX) for different reasons. I am with Scottrade and choose to now buy ETFs because Scottrade has a charge when buying mutual funds. DH is with Firstrade and VGTSX is not available to him. So our choice is now ETFs. However, there is no single comparable Vanguard ETF. I read a Morningstar article that stated that VGTSX can be simulated with ETFs by using the following:

60% Vanguard European Stock VIPERs (VGK) - expense ratio 0.18%
25% Vanguard Pacific VIPERs (VPLs) - expense ratio 0.18%
15% Vanguard Emerging Markets VIPERs (VWO) - expense ratio 0.30%

I am trying to decide between the above method and simply buying iShares MSCI-EAFE (EFA) which is large blend international with an expense ratio of 0.35%.

Which is the better deal? With method #1, we will have to buy three different ETFs, but the expense ratio is lower. With method #2, we will only buy one ETF, but the expense ratio is more. These two methods seem to be on opposite sides of the spectrum.

** Also posted on the Index Funds Board. **

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