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IEFA vs. VSS
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IEFA vs. VSS

Last updated Aug 4, 2026
Documentation

IEFA (iShares Core MSCI EAFE ETF) and VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) are both exchange-traded funds - IEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE IMI Index (Net), while VSS is a Foreign Small & Mid Cap Equities fund tracking the FTSE Global Small Cap ex US Index. Both are passively managed. Over the past 10 years, IEFA returned 9.52%/yr vs 7.57%/yr for VSS. Their correlation of 0.92 means they have usually moved in the same direction. Both charge a 0.07% expense ratio.

Performance

IEFA vs. VSS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core MSCI EAFE ETF (IEFA) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). 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 12.10% return, which is significantly higher than VSS's 6.94% return. Over the past 10 years, IEFA has outperformed VSS with an annualized return of 9.52%, while VSS has yielded a comparatively lower 7.57% annualized return.

IEFA

1D
0.43%
1M
1.41%
6M
6.08%
YTD
12.10%
1Y
25.11%
3Y*
17.33%
5Y*
8.81%
10Y*
9.52%
ALL TIME*
8.55%

VSS

1D
1.28%
1M
-1.71%
6M
0.47%
YTD
6.94%
1Y
18.10%
3Y*
14.19%
5Y*
5.11%
10Y*
7.57%
ALL TIME*
9.69%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

PositionAvg. Volume Value (2W)Avg. Volume Value (1M)Avg. Volume Value (3M)

IEFA

iShares Core MSCI EAFE ETF
$866.09M$876.15M$940.56M

VSS

Vanguard FTSE All-World ex-US Small-Cap ETF
$24.96M$29.77M$40.87M

IEFA vs. VSS - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IEFA
iShares Core MSCI EAFE ETF		12.10%32.08%3.26%17.95%-15.24%11.63%8.18%22.64%-14.14%26.57%
VSS
Vanguard FTSE All-World ex-US Small-Cap ETF		6.94%29.61%2.94%15.52%-21.48%13.05%11.81%21.36%-18.48%30.61%

Correlation

The correlation between IEFA and VSS is 0.90, meaning they have usually moved in the same direction, including during past declines.

Correlation
Correlation (1Y)
Focuses on recent behavior, but can change the most.

0.90

Correlation (3Y)
Balances recent behavior with more history.

0.91

Correlation (5Y)
Shows whether the relationship held over a longer period.

0.93

Correlation (10Y)
Provides a long-term view across more market conditions.

0.93

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

0.92

The correlation between IEFA and VSS has been stable across timeframes, ranging from 0.90 to 0.93 - a consistent structural relationship.

IEFA vs. VSS - Sectors Allocation Comparison

Sectors
IEFA
VSS

Financial Services

23.1%
12.3%

Industrials

19.7%
20.5%

Technology

12.6%
15.7%

Healthcare

9.8%
6.1%

Consumer Cyclical

8.1%
9.0%

Consumer Defensive

6.5%
3.5%

Basic Materials

6.3%
12.9%

Communication Services

4.3%
2.1%

Utilities

3.5%
2.5%

Energy

3.3%
4.6%

Real Estate

2.8%
7.9%

Financial Services

IEFA
23.1%
VSS
12.3%

Industrials

IEFA
19.7%
VSS
20.5%

Technology

IEFA
12.6%
VSS
15.7%

Healthcare

IEFA
9.8%
VSS
6.1%

Consumer Cyclical

IEFA
8.1%
VSS
9.0%

Consumer Defensive

IEFA
6.5%
VSS
3.5%

Basic Materials

IEFA
6.3%
VSS
12.9%

Communication Services

IEFA
4.3%
VSS
2.1%

Utilities

IEFA
3.5%
VSS
2.5%

Energy

IEFA
3.3%
VSS
4.6%

Real Estate

IEFA
2.8%
VSS
7.9%

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 All-World ex-US Small-Cap ETF

Often compared with IEFA:
IEFA vs. VEAIEFA vs. VXUSIEFA vs. EFAIEFA vs. FSPSXIEFA vs. IEMGIEFA vs. XEF.TOIEFA vs. IXUS
Often compared with VSS:
VSS vs. AVDVVSS vs. VEUVSS vs. VXUSVSS vs. SCHCVSS vs. SCZVSS vs. VWOVSS vs. VOO

Return for Risk

IEFA vs. VSS — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.
IEFA
IEFA Risk / Return Rank: 6767
Overall Rank
IEFA Sharpe Ratio Rank: 6969
Sharpe Ratio Rank
IEFA Sortino Ratio Rank: 7070
Sortino Ratio Rank
IEFA Omega Ratio Rank: 6868
Omega Ratio Rank
IEFA Calmar Ratio Rank: 6161
Calmar Ratio Rank
IEFA Martin Ratio Rank: 6868
Martin Ratio Rank
VSS
VSS Risk / Return Rank: 4343
Overall Rank
VSS Sharpe Ratio Rank: 4444
Sharpe Ratio Rank
VSS Sortino Ratio Rank: 4242
Sortino Ratio Rank
VSS Omega Ratio Rank: 4444
Omega Ratio Rank
VSS Calmar Ratio Rank: 4343
Calmar Ratio Rank
VSS Martin Ratio Rank: 4444
Martin Ratio Rank
The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

IEFA vs. VSS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI EAFE ETF (IEFA) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). 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.

IEFAVSSDifference
Sharpe ratioReturn per unit of total volatility
1.61
1.12

+0.49

Sortino ratioReturn per unit of downside risk
2.30
1.59

+0.71

Omega ratioGain probability vs. loss probability

1.29

1.21

+0.08

Calmar ratioReturn relative to maximum drawdown

2.19

1.57

+0.63

Martin ratioReturn relative to average drawdown

8.42

4.95

+3.47

IEFA vs. VSS - Sharpe Ratio Comparison

The current IEFA Sharpe Ratio is 1.61, which is higher than the VSS Sharpe Ratio of 1.12. The chart below compares the historical Sharpe Ratios of IEFA and VSS, 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. VSS - Drawdown Comparison

The maximum IEFA drawdown since its inception was -34.78%, smaller than the maximum VSS drawdown of -43.51%. Use the drawdown chart below to compare losses from any high point for IEFA and VSS.

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Drawdown Indicators

IEFAVSSDifference

Max Drawdown

Largest peak-to-trough decline

-34.78%

-43.51%

+8.73%

Max Drawdown (1Y)

Largest decline over 1 year

-11.50%

-11.62%

+0.12%

Max Drawdown (3Y)

Largest decline over 3 years

-13.76%

-15.73%

+1.97%

Max Drawdown (5Y)

Largest decline over 5 years

-30.41%

-33.93%

+3.52%

Max Drawdown (10Y)

Largest decline over 10 years

-34.78%

-43.51%

+8.73%

Current Drawdown

Current decline from peak

-0.21%

-5.78%

+5.57%

Average Drawdown

Average peak-to-trough decline

-6.63%

-9.60%

+2.97%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.99%

3.67%

-0.68%

Volatility

IEFA vs. VSS - Volatility Comparison

The current volatility for iShares Core MSCI EAFE ETF (IEFA) is 4.60%, while Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) has a volatility of 5.23%. This indicates that IEFA experiences smaller price fluctuations and is considered to be less risky than VSS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

IEFAVSSDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.60%

5.23%

-0.63%

Volatility (6M)

Calculated over the trailing 6-month period

13.60%

14.27%

-0.67%

Volatility (1Y)

Calculated over the trailing 1-year period

15.68%

16.29%

-0.61%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.64%

16.69%

-0.05%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

17.04%

17.15%

-0.11%

IEFA vs. VSS - Expense Ratio Comparison

Both IEFA and VSS have an expense ratio of 0.07%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

IEFA vs. VSS - Dividend Comparison

IEFA's dividend yield for the trailing twelve months is around 3.33%, more than VSS's 3.26% yield.

PositionTTM20252024202320222021202020192018201720162015
IEFA
iShares Core MSCI EAFE ETF		3.33%3.55%3.47%3.20%2.70%3.32%1.90%3.18%3.46%2.57%2.96%2.63%
VSS
Vanguard FTSE All-World ex-US Small-Cap ETF		3.26%3.39%3.44%3.14%2.30%2.74%1.90%3.25%2.80%2.83%2.93%2.66%

Frequently Asked Questions

With a correlation of 0.90, IEFA and VSS 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.

VSS has higher volatility (5.23%) compared to IEFA (4.60%). In terms of maximum drawdown, IEFA dropped -34.78% vs VSS's -43.51%.

On 10-year performance, IEFA leads with 9.52% vs 7.57% for VSS. Both ETFs have the same 0.07% expense ratio. On volatility, IEFA has been the lower-risk option at 4.60%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IEFA has performed better with a 9.52% return vs 7.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

IEFA and VSS have the same expense ratio: 0.07% per year.

IEFA has the higher dividend yield at 3.33%, compared with 3.26% for VSS.

IEFA is categorized as Foreign Large Cap Equities, while VSS is Foreign Small & Mid Cap Equities. IEFA tracks MSCI EAFE IMI Index (Net), while VSS tracks FTSE Global Small Cap ex US Index. They also come from different issuers: iShares and Vanguard.

IEFA currently has the higher Sharpe Ratio (1.61 vs 1.12), 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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