IEV vs VTI
iShares Europe ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | IEV | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.03% | |
| AUM | $1.7B | $666.9B | |
| Dividend Yield | 2.72% | 1.07% | |
| Holdings | 374 | 3,543 | |
| YTD Return | +10.43% | +12.65% | |
| 1Y Return | +19.39% | +21.39% | |
| 3Y Return (annualized) | +18.41% | +21.54% | |
| 5Y Return (annualized) | +9.92% | +12.11% | |
| Volatility (annualized) | 18.2% | 15.3% | |
| Max Drawdown | -65.6% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 25, 2000 | May 24, 2001 |
IEV vs VTI Performance
iShares Europe ETF (IEV) is a ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IEV returned +19.39% while VTI returned +21.39%. Year to date, IEV is up 10.43% versus a gain of 12.65% for VTI.
Over three years, IEV compounded at +18.41% per year against +21.54% for VTI; over five years the annualized figures are +9.92% and +12.11% respectively. Across the full 25-year window we track, VTI has the edge at +8.07% annualized vs +3.27%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IEV has been the more volatile fund, with annualized monthly volatility of 18.2% compared with 15.3% for VTI. 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 -65.6% for IEV 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IEV charges 0.60% per year while VTI charges 0.03%. On a $10,000 position that is $60 vs $3 annually, a gap of $57 per year that compounds over a long holding period. On income, IEV currently yields 2.72% against 1.07% for VTI.
Holdings Overlap
IEV and VTI share 4 holdings out of 3144 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IEV or VTI?
IEV has an expense ratio of 0.60% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, IEV or VTI?
Over the past year IEV returned +19.39% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (25 years), IEV annualized +3.27% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, IEV or VTI?
IEV has been the more volatile fund at 18.2% annualized versus 15.3% for VTI. Worst drawdown: IEV -65.6% vs VTI -56.6%.
Should I hold both IEV and VTI?
IEV and VTI have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IEV and VTI?
IEV and VTI share 4 common holdings with a 0.2% weight overlap. Combined, they hold 3144 unique securities.
Which pays a higher dividend, IEV or VTI?
IEV yields 2.72% while VTI yields 1.07%, so IEV currently pays the higher dividend yield.
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