IEFA vs VOO
IEFA vs VOO
iShares Core MSCI EAFE ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. IEFA offers more diversification with 1463 holdings.
Side-by-Side Comparison
| Metric | IEFA | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.03% | |
| AUM | $187.0B | $979.0B | |
| Dividend Yield | 3.40% | 1.09% | |
| Holdings | 2,645 | 509 | |
| YTD Return | +10.67% | +13.11% | |
| 1Y Return | +22.23% | +22.88% | |
| 3Y Return (annualized) | +16.91% | +21.08% | |
| 5Y Return (annualized) | +8.72% | +13.26% | |
| Volatility (annualized) | 14.3% | 14.1% | |
| Max Drawdown | -34.8% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 18, 2012 | Sep 7, 2010 |
IEFA vs VOO Performance
iShares Core MSCI EAFE ETF (IEFA) 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 IEFA returned +22.23% while VOO returned +22.88%. Year to date, IEFA is up 10.67% versus a gain of 13.11% for VOO.
Over three years, IEFA compounded at +16.91% per year against +21.08% for VOO; over five years the annualized figures are +8.72% and +13.26% respectively. Across the full 14-year window we track, VOO has the edge at +13.54% annualized vs +8.38%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IEFA has been the more volatile fund, with annualized monthly volatility of 14.3% compared with 14.1% 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 -34.8% for IEFA 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IEFA charges 0.07% per year while VOO 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 1.09% for VOO.
Holdings Overlap
IEFA and VOO share 4 holdings out of 1964 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
Frequently Asked Questions
Which is cheaper, IEFA or VOO?
IEFA has an expense ratio of 0.07% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, IEFA or VOO?
Over the past year IEFA returned +22.23% vs +22.88% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (14 years), IEFA annualized +8.38% vs +13.54% for VOO. Past performance does not guarantee future results.
Which is riskier, IEFA or VOO?
IEFA has been the more volatile fund at 14.3% annualized versus 14.1% for VOO. Worst drawdown: IEFA -34.8% vs VOO -34.3%.
Should I hold both IEFA and VOO?
IEFA and VOO 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 IEFA and VOO?
IEFA and VOO share 4 common holdings with a 0.1% weight overlap. Combined, they hold 1964 unique securities.
Which pays a higher dividend, IEFA or VOO?
IEFA yields 3.40% while VOO yields 1.09%, so IEFA currently pays the higher dividend yield.
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