IEFA vs VYM
IEFA vs VYM
iShares Core MSCI EAFE ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. IEFA offers more diversification with 1463 holdings.
Side-by-Side Comparison
| Metric | IEFA | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.04% | |
| AUM | $187.0B | $79.0B | |
| Dividend Yield | 3.40% | 2.86% | |
| Holdings | 2,645 | 568 | |
| YTD Return | +10.67% | +15.20% | |
| 1Y Return | +22.23% | +25.56% | |
| 3Y Return (annualized) | +16.91% | +17.86% | |
| 5Y Return (annualized) | +8.72% | +12.35% | |
| Volatility (annualized) | 14.3% | 14.6% | |
| Max Drawdown | -34.8% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 18, 2012 | Nov 10, 2006 |
IEFA vs VYM Performance
iShares Core MSCI EAFE ETF (IEFA) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IEFA returned +22.23% while VYM returned +25.56%. Year to date, IEFA is up 10.67% versus a gain of 15.20% for VYM.
Over three years, IEFA compounded at +16.91% per year against +17.86% for VYM; over five years the annualized figures are +8.72% and +12.35% respectively. Across the full 14-year window we track, IEFA has the edge at +8.38% annualized vs +7.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -58.8% for VYM. 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 VYM charges 0.04%. On a $10,000 position that is $7 vs $4 annually, a gap of $3 per year that compounds over a long holding period. On income, IEFA currently yields 3.40% against 2.86% for VYM.
Holdings Overlap
IEFA and VYM share 6 holdings out of 2015 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IEFA | Weight in VYM | Difference |
|---|---|---|---|
| DG | 0.27% | 0.15% | 0.12% |
| EQT | 0.05% | 0.17% | 0.12% |
| RF | 0.01% | 0.11% | 0.10% |
| SIG | Pro | Pro | Pro |
| AM | Pro | Pro | Pro |
| ZIM:IL | Pro | Pro | Pro |
See all 6 holdings IEFA shares with VYM 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 VYM?
IEFA has an expense ratio of 0.07% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, IEFA or VYM?
Over the past year IEFA returned +22.23% vs +25.56% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (14 years), IEFA annualized +8.38% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, IEFA or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.3% for IEFA. Worst drawdown: IEFA -34.8% vs VYM -58.8%.
Should I hold both IEFA and VYM?
IEFA and VYM 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 VYM?
IEFA and VYM share 6 common holdings with a 0.3% weight overlap. Combined, they hold 2015 unique securities.
Which pays a higher dividend, IEFA or VYM?
IEFA yields 3.40% while VYM yields 2.86%, so IEFA currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.