HEFA vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricHEFAVXUSWinner
Expense Ratio0.35%0.05%
AUM$7.5B$156.5B
Dividend Yield2.95%2.60%
Holdings7868,747
YTD Return+10.94%+11.13%
1Y Return+22.77%+27.13%
3Y Return (annualized)+17.09%+17.24%
5Y Return (annualized)+11.29%+8.71%
Volatility (annualized)12.3%15.1%
Max Drawdown-45.6%-39.9%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionJan 31, 2014Jan 26, 2011

HEFA vs VXUS Performance

iShares Currency Hedged MSCI EAFE ETF (HEFA) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year HEFA returned +22.77% while VXUS returned +27.13%. Year to date, HEFA is up 10.94% versus a gain of 11.13% for VXUS.

Over three years, HEFA compounded at +17.09% per year against +17.24% for VXUS; over five years the annualized figures are +11.29% and +8.71% respectively. Across the full 13-year window we track, HEFA has the edge at +9.59% annualized vs +4.66%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -39.9% for VXUS. 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 0.84. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

HEFA charges 0.35% per year while VXUS charges 0.05%. On a $10,000 position that is $35 vs $5 annually, a gap of $30 per year that compounds over a long holding period. On income, HEFA currently yields 2.95% against 2.60% for VXUS.

Holdings Overlap

29.2%overlap

HEFA and VXUS share 397 holdings out of 8111 unique holdings combined, representing a 29.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in HEFAWeight in VXUSDifference
ASML:AS3.29%1.29%2.00%
HSBA:LN1.55%0.72%0.83%
AZN:LN1.25%0.71%0.54%
NESN:SMProProPro
SHELProProPro
8306:JPProProPro
CBA:AUProProPro
8035:JPProProPro
ABBN:SMProProPro
RR:LNProProPro
See all 10 holdings HEFA shares with VXUS
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, HEFA or VXUS?

HEFA has an expense ratio of 0.35% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $30 per year of difference.

Which performed better, HEFA or VXUS?

Over the past year HEFA returned +22.77% vs +27.13% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (13 years), HEFA annualized +9.59% vs +4.66% for VXUS. Past performance does not guarantee future results.

Which is riskier, HEFA or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 12.3% for HEFA. Worst drawdown: HEFA -45.6% vs VXUS -39.9%.

Should I hold both HEFA and VXUS?

HEFA and VXUS have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HEFA and VXUS?

HEFA and VXUS share 397 common holdings with a 29.2% weight overlap. Combined, they hold 8111 unique securities.

Which pays a higher dividend, HEFA or VXUS?

HEFA yields 2.95% while VXUS yields 2.60%, so HEFA currently pays the higher dividend yield.

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