HEFA vs VTI
HEFA vs VTI
iShares Currency Hedged MSCI EAFE ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. HEFA delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | HEFA | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.03% | |
| AUM | $7.5B | $663.5B | |
| Dividend Yield | 2.95% | 1.07% | |
| Holdings | 786 | 3,543 | |
| YTD Return | +10.94% | +10.14% | |
| 1Y Return | +22.77% | +19.82% | |
| 3Y Return (annualized) | +17.09% | +18.94% | |
| 5Y Return (annualized) | +11.29% | +11.79% | |
| Volatility (annualized) | 12.3% | 15.4% | |
| Max Drawdown | -45.6% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 31, 2014 | May 24, 2001 |
HEFA vs VTI Performance
iShares Currency Hedged MSCI EAFE ETF (HEFA) 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 HEFA returned +22.77% while VTI returned +19.82%. Year to date, HEFA is up 10.94% versus a gain of 10.14% for VTI.
Over three years, HEFA compounded at +17.09% per year against +18.94% for VTI; over five years the annualized figures are +11.29% and +11.79% respectively. Across the full 13-year window we track, HEFA has the edge at +9.59% annualized vs +7.99%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 12.3% for HEFA. 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 -45.6% for HEFA 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HEFA charges 0.35% per year while VTI charges 0.03%. On a $10,000 position that is $35 vs $3 annually, a gap of $32 per year that compounds over a long holding period. On income, HEFA currently yields 2.95% against 1.07% for VTI.
Holdings Overlap
HEFA and VTI share 5 holdings out of 3426 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in HEFA | Weight in VTI | Difference |
|---|---|---|---|
| MRK | 0.09% | 0.44% | 0.35% |
| SUNB | 0.14% | 0.04% | 0.10% |
| ORA | 0.16% | 0.00% | 0.16% |
| SIG:LN | Pro | Pro | Pro |
| SGP:AU | Pro | Pro | Pro |
See all 5 holdings HEFA shares with VTI Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, HEFA or VTI?
HEFA has an expense ratio of 0.35% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, HEFA or VTI?
Over the past year HEFA returned +22.77% vs +19.82% for VTI, so HEFA leads on 1-year performance. Over the longest common window we track (13 years), HEFA annualized +9.59% vs +7.99% for VTI. Past performance does not guarantee future results.
Which is riskier, HEFA or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 12.3% for HEFA. Worst drawdown: HEFA -45.6% vs VTI -56.6%.
Should I hold both HEFA and VTI?
HEFA and VTI have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HEFA and VTI?
HEFA and VTI share 5 common holdings with a 0.1% weight overlap. Combined, they hold 3426 unique securities.
Which pays a higher dividend, HEFA or VTI?
HEFA yields 2.95% while VTI yields 1.07%, so HEFA currently pays the higher dividend yield.
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