EFA vs VOO
EFA vs VOO
iShares MSCI EAFE ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. EFA delivered stronger 1-year returns. EFA offers more diversification with 645 holdings.
Side-by-Side Comparison
| Metric | EFA | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.32% | 0.03% | |
| AUM | $76.6B | $979.0B | |
| Dividend Yield | 3.24% | 1.09% | |
| Holdings | 704 | 509 | |
| YTD Return | +10.52% | +9.95% | |
| 1Y Return | +24.77% | +19.58% | |
| 3Y Return (annualized) | +16.42% | +19.43% | |
| 5Y Return (annualized) | +9.13% | +12.89% | |
| Volatility (annualized) | 16.6% | 14.2% | |
| Max Drawdown | -60.0% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 14, 2001 | Sep 7, 2010 |
EFA vs VOO Performance
iShares MSCI EAFE ETF (EFA) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year EFA returned +24.77% while VOO returned +19.58%. Year to date, EFA is up 10.52% versus a gain of 9.95% for VOO.
Over three years, EFA compounded at +16.42% per year against +19.43% for VOO; over five years the annualized figures are +9.13% and +12.89% respectively. Across the full 16-year window we track, VOO has the edge at +13.35% annualized vs +6.74%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EFA has been the more volatile fund, with annualized monthly volatility of 16.6% compared with 14.2% for VOO. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -60.0% for EFA and -34.3% for VOO. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EFA charges 0.32% per year while VOO charges 0.03%. On a $10,000 position that is $32 vs $3 annually, a gap of $29 per year that compounds over a long holding period. On income, EFA currently yields 3.24% against 1.09% for VOO.
Holdings Overlap
EFA and VOO share 3 holdings out of 1147 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, EFA or VOO?
EFA has an expense ratio of 0.32% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, EFA or VOO?
Over the past year EFA returned +24.77% vs +19.58% for VOO, so EFA leads on 1-year performance. Over the longest common window we track (16 years), EFA annualized +6.74% vs +13.35% for VOO. Past performance does not guarantee future results.
Which is riskier, EFA or VOO?
EFA has been the more volatile fund at 16.6% annualized versus 14.2% for VOO. Worst drawdown: EFA -60.0% vs VOO -34.3%.
Should I hold both EFA and VOO?
EFA and VOO have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EFA and VOO?
EFA and VOO share 3 common holdings with a 0.2% weight overlap. Combined, they hold 1147 unique securities.
Which pays a higher dividend, EFA or VOO?
EFA yields 3.24% while VOO yields 1.09%, so EFA currently pays the higher dividend yield.
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