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IEFA vs. VEA
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IEFA vs. VEA

Last updated Jun 20, 2026

IEFA (iShares Core MSCI EAFE ETF) and VEA (Vanguard FTSE Developed Markets ETF) are both Foreign Large Cap Equities funds - IEFA tracks the MSCI EAFE IMI Index (Net) while VEA tracks the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 10 years, IEFA returned 9.55%/yr vs 10.46%/yr for VEA. With a 0.99 correlation, they move nearly in lockstep. IEFA charges 0.07%/yr vs 0.03%/yr for VEA.

Performance

IEFA vs. VEA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core MSCI EAFE ETF (IEFA) and Vanguard FTSE Developed Markets ETF (VEA). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, IEFA achieves a 10.53% return, which is significantly lower than VEA's 16.56% return. Over the past 10 years, IEFA has underperformed VEA with an annualized return of 9.55%, while VEA has yielded a comparatively higher 10.46% annualized return.

IEFA

1D
0.50%
1M
2.04%
YTD
10.53%
6M
11.29%
1Y
24.29%
3Y*
16.23%
5Y*
9.02%
10Y*
9.55%

VEA

1D
0.96%
1M
3.55%
YTD
16.56%
6M
17.75%
1Y
34.18%
3Y*
19.30%
5Y*
10.55%
10Y*
10.46%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IEFA vs. VEA - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IEFA
iShares Core MSCI EAFE ETF		10.53%32.08%3.26%17.95%-15.24%11.63%8.18%22.64%-14.14%26.57%
VEA
Vanguard FTSE Developed Markets ETF		16.56%35.16%3.15%17.93%-15.34%11.66%9.71%22.62%-14.75%26.42%

Correlation

The correlation between IEFA and VEA is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.98

Correlation (3Y)
Calculated over the trailing 3-year period

0.99

Correlation (5Y)
Calculated over the trailing 5-year period

0.99

Correlation (10Y)
Calculated over the trailing 10-year period

0.99

Correlation (All Time)
Calculated using the full available price history since Oct 24, 2012

0.99

The correlation between IEFA and VEA has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.

IEFA vs. VEA - Sectors Allocation Comparison

Sectors
IEFA
VEA

Financial Services

22.6%
23.3%

Industrials

20.1%
19.2%

Technology

11.6%
13.8%

Healthcare

9.7%
8.2%

Consumer Cyclical

8.3%
7.5%

Basic Materials

6.8%
7.5%

Consumer Defensive

6.2%
5.6%

Communication Services

4.7%
3.4%

Energy

3.6%
5.4%

Utilities

3.5%
3.3%

Real Estate

2.9%
2.7%

Financial Services

IEFA
22.6%
VEA
23.3%

Industrials

IEFA
20.1%
VEA
19.2%

Technology

IEFA
11.6%
VEA
13.8%

Healthcare

IEFA
9.7%
VEA
8.2%

Consumer Cyclical

IEFA
8.3%
VEA
7.5%

Basic Materials

IEFA
6.8%
VEA
7.5%

Consumer Defensive

IEFA
6.2%
VEA
5.6%

Communication Services

IEFA
4.7%
VEA
3.4%

Energy

IEFA
3.6%
VEA
5.4%

Utilities

IEFA
3.5%
VEA
3.3%

Real Estate

IEFA
2.9%
VEA
2.7%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares Core MSCI EAFE ETF

Vanguard FTSE Developed Markets ETF

Often compared with IEFA:
IEFA vs. VXUSIEFA vs. EFAIEFA vs. FSPSXIEFA vs. IEMGIEFA vs. XEF.TOIEFA vs. IXUSIEFA vs. IDEV
Often compared with VEA:
VEA vs. VXUSVEA vs. VWOVEA vs. VOOVEA vs. VEUVEA vs. SCHFVEA vs. VTIVEA vs. VGK

Return for Risk

IEFA vs. VEA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IEFA
IEFA Risk / Return Rank: 4747
Overall Rank
IEFA Sharpe Ratio Rank: 4747
Sharpe Ratio Rank
IEFA Sortino Ratio Rank: 4848
Sortino Ratio Rank
IEFA Omega Ratio Rank: 4747
Omega Ratio Rank
IEFA Calmar Ratio Rank: 4444
Calmar Ratio Rank
IEFA Martin Ratio Rank: 5050
Martin Ratio Rank
VEA
VEA Risk / Return Rank: 6565
Overall Rank
VEA Sharpe Ratio Rank: 6767
Sharpe Ratio Rank
VEA Sortino Ratio Rank: 6565
Sortino Ratio Rank
VEA Omega Ratio Rank: 6767
Omega Ratio Rank
VEA Calmar Ratio Rank: 6262
Calmar Ratio Rank
VEA Martin Ratio Rank: 6565
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

IEFA vs. VEA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI EAFE ETF (IEFA) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

IEFAVEADifference
Sharpe ratioReturn per unit of total volatility
1.58
2.08

-0.50

Sortino ratioReturn per unit of downside risk
2.27
2.84

-0.57

Omega ratioGain probability vs. loss probability

1.29

1.38

-0.09

Calmar ratioReturn relative to maximum drawdown

2.12

2.95

-0.83

Martin ratioReturn relative to average drawdown

8.08

11.39

-3.31

IEFA vs. VEA - Sharpe Ratio Comparison

The current IEFA Sharpe Ratio is 1.58, which is comparable to the VEA Sharpe Ratio of 2.08. The chart below compares the historical Sharpe Ratios of IEFA and VEA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

IEFA vs. VEA - Drawdown Comparison

The maximum IEFA drawdown since its inception was -34.78%, smaller than the maximum VEA drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for IEFA and VEA.

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Drawdown Indicators

IEFAVEADifference

Max Drawdown

Largest peak-to-trough decline

-34.78%

-60.68%

+25.90%

Max Drawdown (1Y)

Largest decline over 1 year

-11.50%

-11.63%

+0.13%

Max Drawdown (3Y)

Largest decline over 3 years

-13.76%

-13.45%

-0.31%

Max Drawdown (5Y)

Largest decline over 5 years

-30.41%

-29.71%

-0.70%

Max Drawdown (10Y)

Largest decline over 10 years

-34.78%

-35.73%

+0.95%

Current Drawdown

Current decline from peak

0.00%

0.00%

0.00%

Average Drawdown

Average peak-to-trough decline

-6.67%

-13.26%

+6.59%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.02%

3.01%

+0.01%

Volatility

IEFA vs. VEA - Volatility Comparison

The current volatility for iShares Core MSCI EAFE ETF (IEFA) is 5.07%, while Vanguard FTSE Developed Markets ETF (VEA) has a volatility of 6.51%. This indicates that IEFA experiences smaller price fluctuations and is considered to be less risky than VEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

IEFAVEADifference

Volatility (1M)

Calculated over the trailing 1-month period

5.07%

6.51%

-1.44%

Volatility (6M)

Calculated over the trailing 6-month period

13.10%

14.42%

-1.32%

Volatility (1Y)

Calculated over the trailing 1-year period

15.44%

16.51%

-1.07%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.59%

16.71%

-0.12%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

17.30%

17.40%

-0.10%

IEFA vs. VEA - Expense Ratio Comparison

IEFA has a 0.07% expense ratio, which is higher than VEA's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

IEFA vs. VEA - Dividend Comparison

IEFA's dividend yield for the trailing twelve months is around 3.38%, more than VEA's 3.12% yield.

PositionTTM20252024202320222021202020192018201720162015
IEFA
iShares Core MSCI EAFE ETF		3.38%3.55%3.47%3.20%2.70%3.32%1.90%3.18%3.46%2.57%2.96%2.63%
VEA
Vanguard FTSE Developed Markets ETF		3.12%3.22%3.35%3.15%2.91%3.16%2.04%3.04%3.35%2.77%3.05%2.92%

Frequently Asked Questions

With a correlation of 0.98, IEFA and VEA move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

VEA has higher volatility (6.51%) compared to IEFA (5.07%). In terms of maximum drawdown, IEFA dropped -34.78% vs VEA's -60.68%.

On 10-year performance, VEA leads with 10.46% vs 9.55% for IEFA. On fees, VEA is cheaper at 0.03% per year. On volatility, IEFA has been the lower-risk option at 5.07%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VEA has performed better with a 10.46% return vs 9.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VEA is cheaper with a 0.03% expense ratio, compared with 0.07% for IEFA.

IEFA has the higher dividend yield at 3.38%, compared with 3.12% for VEA.

IEFA tracks MSCI EAFE IMI Index (Net), while VEA tracks FTSE Developed All Cap ex US Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.07% for IEFA and 0.03% for VEA.

VEA currently has the higher Sharpe Ratio (2.08 vs 1.58), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.

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