EFA vs. VEA
Compare and contrast key facts about iShares MSCI EAFE ETF (EFA) and Vanguard FTSE Developed Markets ETF (VEA).
EFA and VEA are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. EFA is a passively managed fund by iShares that tracks the performance of the MSCI EAFE Index. It was launched on Aug 14, 2001. VEA is a passively managed fund by Vanguard that tracks the performance of the MSCI EAFE Index. It was launched on Jul 20, 2007. Both EFA and VEA are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: EFA or VEA.
Key characteristics
| EFA | VEA | |
|---|---|---|
| YTD Return | 4.53% | 4.50% |
| 1Y Return | 12.42% | 12.59% |
| 3Y Return (Ann) | 1.51% | 0.95% |
| 5Y Return (Ann) | 5.49% | 5.71% |
| 10Y Return (Ann) | 5.03% | 5.37% |
| Sharpe Ratio | 0.96 | 0.97 |
| Sortino Ratio | 1.39 | 1.40 |
| Omega Ratio | 1.17 | 1.17 |
| Calmar Ratio | 1.44 | 1.26 |
| Martin Ratio | 4.70 | 4.96 |
| Ulcer Index | 2.60% | 2.52% |
| Daily Std Dev | 12.76% | 12.84% |
| Max Drawdown | -61.04% | -60.70% |
| Current Drawdown | -8.31% | -7.77% |
Correlation
The correlation between EFA and VEA is 0.99, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
EFA vs. VEA - Performance Comparison
The year-to-date returns for both stocks are quite close, with EFA having a 4.53% return and VEA slightly lower at 4.50%. Over the past 10 years, EFA has underperformed VEA with an annualized return of 5.03%, while VEA has yielded a comparatively higher 5.37% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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EFA vs. VEA - Expense Ratio Comparison
EFA has a 0.32% expense ratio, which is higher than VEA's 0.05% expense ratio.
Risk-Adjusted Performance
EFA vs. VEA - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI EAFE ETF (EFA) and Vanguard FTSE Developed Markets ETF (VEA). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
EFA vs. VEA - Dividend Comparison
EFA's dividend yield for the trailing twelve months is around 3.00%, less than VEA's 3.05% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EFA iShares MSCI EAFE ETF | 3.00% | 2.98% | 2.69% | 3.33% | 2.13% | 3.10% | 3.39% | 2.57% | 3.07% | 2.76% | 3.72% | 2.54% |
VEA Vanguard FTSE Developed Markets ETF | 3.05% | 3.16% | 2.91% | 3.16% | 2.04% | 3.04% | 3.35% | 2.77% | 3.05% | 2.92% | 3.68% | 2.60% |
Drawdowns
EFA vs. VEA - Drawdown Comparison
The maximum EFA drawdown since its inception was -61.04%, roughly equal to the maximum VEA drawdown of -60.70%. Use the drawdown chart below to compare losses from any high point for EFA and VEA. For additional features, visit the drawdowns tool.
Volatility
EFA vs. VEA - Volatility Comparison
iShares MSCI EAFE ETF (EFA) has a higher volatility of 4.01% compared to Vanguard FTSE Developed Markets ETF (VEA) at 3.73%. This indicates that EFA's price experiences larger fluctuations and is considered to be riskier than VEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.