EFA vs VTI

Quick Verdict

VTI has a lower expense ratio. EFA delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: EFAMore Diversified: VTI

Side-by-Side Comparison

MetricEFAVTIWinner
Expense Ratio0.32%0.03%
AUM$76.6B$663.5B
Dividend Yield3.24%1.07%
Holdings7043,543
YTD Return+10.52%+10.14%
1Y Return+24.77%+19.82%
3Y Return (annualized)+16.42%+18.94%
5Y Return (annualized)+9.13%+11.79%
Volatility (annualized)16.6%15.4%
Max Drawdown-60.0%-56.6%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionAug 14, 2001May 24, 2001

EFA vs VTI Performance

iShares MSCI EAFE ETF (EFA) is a ETF from iShares by BlackRock (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year EFA returned +24.77% while VTI returned +19.82%. Year to date, EFA is up 10.52% versus a gain of 10.14% for VTI.

Over three years, EFA compounded at +16.42% per year against +18.94% for VTI; over five years the annualized figures are +9.13% and +11.79% respectively. Across the full 25-year window we track, VTI has the edge at +7.99% 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 15.4% for VTI. 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 -56.6% for VTI. 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 0.85. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

EFA charges 0.32% per year while VTI 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 1.07% for VTI.

Holdings Overlap

0.2%overlap

EFA and VTI share 8 holdings out of 3420 unique holdings combined, representing a 0.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in EFAWeight in VTIDifference
ROP1.31%0.05%1.26%
MRK0.09%0.44%0.35%
DG0.30%0.03%0.27%
SUNBProProPro
ORAProProPro
FBKProProPro
AMProProPro
SGP:AUProProPro
See all 8 holdings EFA shares with VTI
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, EFA or VTI?

EFA has an expense ratio of 0.32% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $29 per year of difference.

Which performed better, EFA or VTI?

Over the past year EFA returned +24.77% vs +19.82% for VTI, so EFA leads on 1-year performance. Over the longest common window we track (25 years), EFA annualized +6.74% vs +7.99% for VTI. Past performance does not guarantee future results.

Which is riskier, EFA or VTI?

EFA has been the more volatile fund at 16.6% annualized versus 15.4% for VTI. Worst drawdown: EFA -60.0% vs VTI -56.6%.

Should I hold both EFA and VTI?

EFA and VTI have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between EFA and VTI?

EFA and VTI share 8 common holdings with a 0.2% weight overlap. Combined, they hold 3420 unique securities.

Which pays a higher dividend, EFA or VTI?

EFA yields 3.24% while VTI yields 1.07%, so EFA currently pays the higher dividend yield.

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