IEFA vs VEA
IEFA vs VEA
iShares Core MSCI EAFE ETF vs Vanguard FTSE Developed Markets ETF
Quick Verdict
VEA has a lower expense ratio. VEA delivered stronger 1-year returns. VEA offers more diversification with 3009 holdings.
Side-by-Side Comparison
| Metric | IEFA | VEA | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.03% | |
| AUM | $187.0B | $230.9B | |
| Dividend Yield | 3.40% | 2.57% | |
| Holdings | 2,645 | 3,918 | |
| YTD Return | +10.55% | +15.07% | |
| 1Y Return | +22.92% | +30.82% | |
| 3Y Return (annualized) | +16.90% | +19.48% | |
| 5Y Return (annualized) | +8.73% | +10.05% | |
| Volatility (annualized) | 14.3% | 17.8% | |
| Max Drawdown | -34.8% | -62.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 18, 2012 | Jul 20, 2007 |
IEFA vs VEA Performance
iShares Core MSCI EAFE ETF (IEFA) is a ETF from iShares by BlackRock (US) and Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US). Over the past year IEFA returned +22.92% while VEA returned +30.82%. Year to date, IEFA is up 10.55% versus a gain of 15.07% for VEA.
Over three years, IEFA compounded at +16.90% per year against +19.48% for VEA; over five years the annualized figures are +8.73% and +10.05% respectively. Across the full 14-year window we track, IEFA has the edge at +8.37% annualized vs +3.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEA has been the more volatile fund, with annualized monthly volatility of 17.8% compared with 14.3% for IEFA. 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 -34.8% for IEFA and -62.9% for VEA. 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 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IEFA charges 0.07% per year while VEA charges 0.03%. On a $10,000 position that is $7 vs $3 annually, a gap of $4 per year that compounds over a long holding period. On income, IEFA currently yields 3.40% against 2.57% for VEA.
Holdings Overlap
IEFA and VEA share 813 holdings out of 3659 unique holdings combined, representing a 40.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IEFA | Weight in VEA | Difference |
|---|---|---|---|
| HSBA:LN | 1.31% | 0.99% | 0.32% |
| 5930:JP | 0.00% | 2.17% | 2.17% |
| NOVN:SM | 1.11% | 0.99% | 0.12% |
| AZN:LN | Pro | Pro | Pro |
| NESN:SM | Pro | Pro | Pro |
| SHEL | Pro | Pro | Pro |
| SIE:SG | Pro | Pro | Pro |
| 7203:TK | Pro | Pro | Pro |
| BHP:AU | Pro | Pro | Pro |
| CBA:AU | Pro | Pro | Pro |
See all 10 holdings IEFA shares with VEA 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, IEFA or VEA?
IEFA has an expense ratio of 0.07% while VEA charges 0.03%. VEA is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, IEFA or VEA?
Over the past year IEFA returned +22.92% vs +30.82% for VEA, so VEA leads on 1-year performance. Over the longest common window we track (14 years), IEFA annualized +8.37% vs +3.09% for VEA. Past performance does not guarantee future results.
Which is riskier, IEFA or VEA?
VEA has been the more volatile fund at 17.8% annualized versus 14.3% for IEFA. Worst drawdown: IEFA -34.8% vs VEA -62.9%.
Should I hold both IEFA and VEA?
IEFA and VEA have a monthly-return correlation of 0.99, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between IEFA and VEA?
IEFA and VEA share 813 common holdings with a 40.9% weight overlap. Combined, they hold 3659 unique securities.
Which pays a higher dividend, IEFA or VEA?
IEFA yields 3.40% while VEA yields 2.57%, so IEFA currently pays the higher dividend yield.
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