IEFA vs VTI
IEFA vs VTI
iShares Core MSCI EAFE ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | IEFA | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.03% | |
| AUM | $187.0B | $663.5B | |
| Dividend Yield | 3.40% | 1.07% | |
| Holdings | 2,645 | 3,543 | |
| YTD Return | +11.88% | +14.20% | |
| 1Y Return | +22.49% | +24.16% | |
| 3Y Return (annualized) | +17.58% | +21.12% | |
| 5Y Return (annualized) | +9.00% | +12.37% | |
| Volatility (annualized) | 14.4% | 15.3% | |
| Max Drawdown | -34.8% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 18, 2012 | May 24, 2001 |
IEFA vs VTI Performance
iShares Core MSCI EAFE ETF (IEFA) is a ETF from iShares by BlackRock (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IEFA returned +22.49% while VTI returned +24.16%. Year to date, IEFA is up 11.88% versus a gain of 14.20% for VTI.
Over three years, IEFA compounded at +17.58% per year against +21.12% for VTI; over five years the annualized figures are +9.00% and +12.37% respectively. Across the full 14-year window we track, IEFA has the edge at +8.46% annualized vs +8.14%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.4% 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 -56.6% for VTI. 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IEFA charges 0.07% per year while VTI 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 1.07% for VTI.
Holdings Overlap
IEFA and VTI share 9 holdings out of 4237 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IEFA | Weight in VTI | Difference |
|---|---|---|---|
| ROP | 1.13% | 0.05% | 1.08% |
| DG | 0.27% | 0.03% | 0.24% |
| SUNB | 0.12% | 0.04% | 0.08% |
| EQT | Pro | Pro | Pro |
| FBK | Pro | Pro | Pro |
| RF | Pro | Pro | Pro |
| SIG | Pro | Pro | Pro |
| AM | Pro | Pro | Pro |
| SGP:AU | Pro | Pro | Pro |
See all 9 holdings IEFA shares with VTI 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 VTI?
IEFA has an expense ratio of 0.07% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, IEFA or VTI?
Over the past year IEFA returned +22.49% vs +24.16% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (14 years), IEFA annualized +8.46% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, IEFA or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 14.4% for IEFA. Worst drawdown: IEFA -34.8% vs VTI -56.6%.
Should I hold both IEFA and VTI?
IEFA and VTI have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IEFA and VTI?
IEFA and VTI share 9 common holdings with a 0.2% weight overlap. Combined, they hold 4237 unique securities.
Which pays a higher dividend, IEFA or VTI?
IEFA yields 3.40% while VTI yields 1.07%, so IEFA currently pays the higher dividend yield.
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