IEFA vs VOO
iShares Core MSCI EAFE ETF vs Vanguard S&P 500 ETF
Which is better, IEFA or VOO?
VOO has been ahead.
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. IEFA is less concentrated, with 11.8% 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 | IEFA | VOO |
|---|---|---|
| Expense Ratio | 0.07% | 0.03%Best |
| AUM | $193.3B | $997.4B |
| Dividend Yield | 3.29% | 1.04% |
| Holdings | 2,640 | 509 |
| YTD Return | +10.09% | +14.14%Best |
| 1Y Return | +16.27% | +17.31%Best |
| 3Y Return (annualized) | +18.55% | +23.04%Best |
| 5Y Return (annualized) | +8.59% | +13.63%Best |
| Volatility (annualized) | 14.3% | 14.2%Best |
| Max Drawdown | -34.8% | -34.3%Best |
| $10,000 over 5 years | $15,099 | $18,944Best |
| Top 10 Weight | 11.8%Best | 37.6% |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Oct 18, 2012 | Sep 7, 2010 |
Volatility and max drawdown are measured over the window both funds cover: Oct 22, 2012 to Sep 22, 2026 (13.9 years).
IEFA 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 13.9 years both funds cover.
IEFA vs VOO Performance
iShares Core MSCI EAFE ETF (IEFA) 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 IEFA returned +16.27% while VOO returned +17.31%. Year to date, IEFA is up 10.09% versus a gain of 14.14% for VOO.
Over three years, IEFA compounded at +18.55% per year against +23.04% for VOO; over five years the annualized figures are +8.59% and +13.63% respectively. Across the full 14-year window we track, VOO has the edge at +13.56% annualized vs +8.26%.
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 14.2% 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 what each fund did in the worst stretch of the window measured above.
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 3.29% against 1.04% for VOO.
Holdings Overlap
1.5% of IEFA's money is in holdings VOO also owns. 0.2% of VOO's money is in holdings IEFA also owns.
IEFA and VOO share little of their money.
4 positions in common, counted across the 2,580 positions we hold weights for in IEFA and 494 in VOO, against full books of 2,640 and 509.
What only one of them owns
Our book lists 483 positions for VOO that do not appear in our book for IEFA (99.0% of the fund), and 23 for IEFA that do not appear in VOO (2.3%).
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 IEFA 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, IEFA or VOO?
IEFA has an expense ratio of 0.07% while VOO charges 0.03%. VOO is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, IEFA or VOO?
Over the past year IEFA returned +16.27% vs +17.31% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (14 years), IEFA annualized +8.26% vs +13.56% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IEFA or VOO?
IEFA has been the more volatile fund at 14.3% annualized versus 14.2% 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 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 IEFA and VOO?
1.5% of IEFA's money is in holdings VOO also owns. 0.2% of VOO's is in holdings IEFA also owns. They hold 4 positions in common, counted across the 2,580 positions we hold weights for in IEFA and 494 in VOO.
Which pays a higher dividend, IEFA or VOO?
IEFA yields 3.29% while VOO yields 1.04%, so IEFA currently pays the higher dividend yield.
Is VOO better than IEFA?
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. IEFA is less concentrated, with 11.8% 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.