IEFA 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

MetricIEFAVXUSWinner
Expense Ratio0.07%0.05%
AUM$187.0B$156.5B
Dividend Yield3.40%2.60%
Holdings2,6458,747
YTD Return+10.72%+13.65%
1Y Return+23.12%+28.53%
3Y Return (annualized)+16.94%+18.64%
5Y Return (annualized)+8.65%+9.00%
Volatility (annualized)14.3%15.1%
Max Drawdown-34.8%-39.9%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionOct 18, 2012Jan 26, 2011

IEFA vs VXUS Performance

iShares Core MSCI EAFE ETF (IEFA) 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 IEFA returned +23.12% while VXUS returned +28.53%. Year to date, IEFA is up 10.72% versus a gain of 13.65% for VXUS.

Over three years, IEFA compounded at +16.94% per year against +18.64% for VXUS; over five years the annualized figures are +8.65% and +9.00% respectively. Across the full 14-year window we track, IEFA has the edge at +8.38% annualized vs +4.81%. 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 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 -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 0.98. 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 VXUS charges 0.05%. On a $10,000 position that is $7 vs $5 annually, a gap of $2 per year that compounds over a long holding period. On income, IEFA currently yields 3.40% against 2.60% for VXUS.

Holdings Overlap

34.4%overlap

IEFA and VXUS share 1045 holdings out of 8278 unique holdings combined, representing a 34.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IEFAWeight in VXUSDifference
HSBA:LN1.31%0.72%0.59%
NOVN:SM1.11%0.73%0.38%
AZN:LN1.11%0.71%0.40%
NESN:SMProProPro
5930:JPProProPro
SHELProProPro
CBA:AUProProPro
8035:JPProProPro
RR:LNProProPro
ABBN:SMProProPro
See all 10 holdings IEFA 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, IEFA or VXUS?

IEFA has an expense ratio of 0.07% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $2 per year of difference.

Which performed better, IEFA or VXUS?

Over the past year IEFA returned +23.12% vs +28.53% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (14 years), IEFA annualized +8.38% vs +4.81% for VXUS. Past performance does not guarantee future results.

Which is riskier, IEFA or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 14.3% for IEFA. Worst drawdown: IEFA -34.8% vs VXUS -39.9%.

Should I hold both IEFA and VXUS?

IEFA and VXUS have a monthly-return correlation of 0.98, 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 VXUS?

IEFA and VXUS share 1045 common holdings with a 34.4% weight overlap. Combined, they hold 8278 unique securities.

Which pays a higher dividend, IEFA or VXUS?

IEFA yields 3.40% while VXUS yields 2.60%, so IEFA currently pays the higher dividend yield.

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