EFA vs VOO
iShares MSCI EAFE ETF vs Vanguard S&P 500 ETF
Which is better, EFA or VOO?
Each has led over a different period.
VOO has a lower expense ratio. EFA led over 1Y, VOO over 3Y, 5Y and the full window. EFA is less concentrated, with 13.7% of the fund in its ten largest positions against 37.6%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | EFA | VOO |
|---|---|---|
| Expense Ratio | 0.32% | 0.03%Best |
| AUM | $78.7B | $997.4B |
| Dividend Yield | 3.14% | 1.04% |
| Holdings | 700 | 509 |
| YTD Return | +9.94% | +11.01%Best |
| 1Y Return | +16.35%Best | +15.60% |
| 3Y Return (annualized) | +17.53% | +20.82%Best |
| 5Y Return (annualized) | +8.55% | +12.60%Best |
| Volatility (annualized) | 14.9% | 14.1%Best |
| Max Drawdown | -34.2%Best | -34.3% |
| $10,000 over 5 years | $15,071 | $18,101Best |
| Top 10 Weight | 13.7%Best | 37.6% |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Aug 14, 2001 | Sep 7, 2010 |
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 16, 2026 (16 years).
EFA vs VOO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 16 years both funds cover.
EFA vs VOO Performance
iShares MSCI EAFE ETF (EFA) is an ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year EFA returned +16.35% while VOO returned +15.60%. Year to date, EFA is up 9.94% versus a gain of 11.01% for VOO.
Over three years, EFA compounded at +17.53% per year against +20.82% for VOO; over five years the annualized figures are +8.55% and +12.60% respectively. Across the full 16-year window we track, VOO has the edge at +13.30% annualized vs +7.64%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EFA has been the more volatile fund, with annualized monthly volatility of 14.9% 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 -34.2% for EFA and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EFA charges 0.32% per year while VOO charges 0.03%. On a $10,000 position that is $32 vs $3 annually, a gap of $29 per year that compounds over a long holding period. On income, EFA currently yields 3.14% against 1.04% for VOO.
Holdings Overlap
1.7% of EFA's money is in holdings VOO also owns. 0.6% of VOO's money is in holdings EFA also owns.
EFA and VOO share little of their money.
3 positions in common, counted across the 631 positions we hold weights for in EFA and 494 in VOO, against full books of 700 and 509.
What only one of them owns
Our book lists 484 positions for VOO that do not appear in our book for EFA (98.5% of the fund), and 14 for EFA that do not appear in VOO (2.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of EFA and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, EFA or VOO?
EFA has an expense ratio of 0.32% while VOO charges 0.03%. VOO is the cheaper option, by $29 a year on a $10,000 investment.
Which performed better, EFA or VOO?
Over the past year EFA returned +16.35% vs +15.60% for VOO, so EFA leads on 1-year performance. Over the longest common window we track (16 years), EFA annualized +7.64% vs +13.30% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, EFA or VOO?
EFA has been the more volatile fund at 14.9% annualized versus 14.1% for VOO. Worst drawdown: EFA -34.2% vs VOO -34.3%.
Should I hold both EFA and VOO?
EFA and VOO have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between EFA and VOO?
1.7% of EFA's money is in holdings VOO also owns. 0.6% of VOO's is in holdings EFA also owns. They hold 3 positions in common, counted across the 631 positions we hold weights for in EFA and 494 in VOO.
Which pays a higher dividend, EFA or VOO?
EFA yields 3.14% while VOO yields 1.04%, so EFA currently pays the higher dividend yield.
Is VOO better than EFA?
VOO has a lower expense ratio. EFA led over 1Y, VOO over 3Y, 5Y and the full window. EFA is less concentrated, with 13.7% of the fund in its ten largest positions against 37.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.