ILF vs. VEA

Last updated Jun 13, 2026

ILF (iShares Latin American 40 ETF) and VEA (Vanguard FTSE Developed Markets ETF) are both exchange-traded funds - ILF is a Latin America Equities fund tracking the S&P Latin America 40 Index, while VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 10 years, ILF returned 8.97%/yr vs 10.72%/yr for VEA. A 0.70 correlation means they provide meaningful diversification when combined. ILF charges 0.48%/yr vs 0.03%/yr for VEA.

Performance

ILF vs. VEA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Latin American 40 ETF (ILF) and Vanguard FTSE Developed Markets ETF (VEA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with ILF having a 14.45% return and VEA slightly higher at 14.73%. Over the past 10 years, ILF has underperformed VEA with an annualized return of 8.97%, while VEA has yielded a comparatively higher 10.72% annualized return.

ILF

• 1D: 1.19%
• 1M: -1.25%
• YTD: 14.45%
• 6M: 13.56%
• 1Y: 40.51%
• 3Y*: 14.49%
• 5Y*: 9.30%
• 10Y*: 8.97%

VEA

• 1D: 0.34%
• 1M: 1.30%
• YTD: 14.73%
• 6M: 16.65%
• 1Y: 29.82%
• 3Y*: 19.03%
• 5Y*: 9.51%
• 10Y*: 10.72%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ILF vs. VEA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ILF iShares Latin American 40 ETF	14.45%	52.65%	-23.11%	33.14%	9.81%	-13.59%	-11.71%	13.77%	-6.85%	26.33%
VEA Vanguard FTSE Developed Markets ETF	14.73%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%

Correlation

The correlation between ILF and VEA is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.70
Correlation (3Y) Calculated over the trailing 3-year period	0.66
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (10Y) Calculated over the trailing 10-year period	0.64
Correlation (All Time) Calculated using the full available price history since Jul 26, 2007	0.70

The correlation between ILF and VEA has been stable across timeframes, ranging from 0.63 to 0.70 - a consistent structural relationship.

ILF vs. VEA - Sectors Allocation Comparison

Sectors	ILF	VEA
Financial Services	34.1%	23.3%
Basic Materials	21.9%	7.5%
Energy	13.4%	5.4%
Industrials	9.2%	19.2%
Consumer Defensive	8.8%	5.6%
Utilities	4.9%	3.3%
Communication Services	4.5%	3.4%
Consumer Cyclical	1.2%	7.5%
Healthcare	1.2%	8.2%
Real Estate	0.7%	2.7%
Technology	-	13.8%

Return for Risk

ILF vs. VEA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ILF

ILF Risk / Return Rank: 61
ILF Sharpe Ratio Rank: 64
ILF Sortino Ratio Rank: 59
ILF Omega Ratio Rank: 58
ILF Calmar Ratio Rank: 67
ILF Martin Ratio Rank: 57

VEA

VEA Risk / Return Rank: 62
VEA Sharpe Ratio Rank: 63
VEA Sortino Ratio Rank: 62
VEA Omega Ratio Rank: 63
VEA Calmar Ratio Rank: 59
VEA Martin Ratio Rank: 63

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.

ILF vs. VEA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Latin American 40 ETF (ILF) 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.

	ILF	VEA	Difference
Sharpe ratio: Return per unit of total volatility	1.83	1.81	+0.02
Sortino ratio: Return per unit of downside risk	2.44	2.50	-0.07
Omega ratio: Gain probability vs. loss probability	1.31	1.33	-0.02
Calmar ratio: Return relative to maximum drawdown	2.92	2.58	+0.34
Martin ratio: Return relative to average drawdown	8.90	9.92	-1.02

ILF vs. VEA - Sharpe Ratio Comparison

The current ILF Sharpe Ratio is 1.83, which is comparable to the VEA Sharpe Ratio of 1.81. The chart below compares the historical Sharpe Ratios of ILF 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.

Drawdowns

ILF vs. VEA - Drawdown Comparison

The maximum ILF drawdown since its inception was -67.48%, which is greater than VEA's maximum drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for ILF and VEA.

Drawdown Indicators

	ILF	VEA	Difference
Max Drawdown Largest peak-to-trough decline	-67.48%	-60.68%	-6.80%
Max Drawdown (1Y) Largest decline over 1 year	-13.94%	-11.63%	-2.31%
Max Drawdown (3Y) Largest decline over 3 years	-23.97%	-13.45%	-10.52%
Max Drawdown (5Y) Largest decline over 5 years	-29.71%	-29.71%	0.00%
Max Drawdown (10Y) Largest decline over 10 years	-57.79%	-35.73%	-22.06%
Current Drawdown Current decline from peak	-8.53%	-1.06%	-7.47%
Average Drawdown Average peak-to-trough decline	-23.92%	-13.28%	-10.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.56%	3.02%	+1.54%

Volatility

ILF vs. VEA - Volatility Comparison

iShares Latin American 40 ETF (ILF) has a higher volatility of 7.45% compared to Vanguard FTSE Developed Markets ETF (VEA) at 6.84%. This indicates that ILF'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.

Volatility by Period

	ILF	VEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.45%	6.84%	+0.61%
Volatility (6M) Calculated over the trailing 6-month period	18.62%	14.38%	+4.24%
Volatility (1Y) Calculated over the trailing 1-year period	22.30%	16.58%	+5.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.27%	16.72%	+6.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.42%	17.40%	+11.02%

ILF vs. VEA - Expense Ratio Comparison

ILF has a 0.48% expense ratio, which is higher than VEA's 0.03% expense ratio.

Dividends

ILF vs. VEA - Dividend Comparison

ILF's dividend yield for the trailing twelve months is around 3.84%, more than VEA's 2.62% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ILF iShares Latin American 40 ETF	3.84%	4.39%	7.44%	4.61%	12.72%	8.47%	1.88%	3.09%	3.12%	1.80%	1.59%	3.25%
VEA Vanguard FTSE Developed Markets ETF	2.62%	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

Can I hold both ILF and VEA in my portfolio?

ILF and VEA have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ILF or VEA?

ILF has higher volatility (7.45%) compared to VEA (6.84%). In terms of maximum drawdown, ILF dropped -67.48% vs VEA's -60.68%.

Which ETF is better, ILF or VEA?

On 10-year performance, VEA leads with 10.72% vs 8.97% for ILF. On fees, VEA is cheaper at 0.03% per year. On volatility, VEA has been the lower-risk option at 6.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ILF or VEA?

Over the 10-year period, VEA has performed better with a 10.72% return vs 8.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ILF or VEA?

VEA is cheaper with a 0.03% expense ratio, compared with 0.48% for ILF.

Which ETF pays a higher dividend yield, ILF or VEA?

ILF has the higher dividend yield at 3.84%, compared with 2.62% for VEA.

What is the main difference between ILF and VEA?

ILF is categorized as Latin America Equities, while VEA is Foreign Large Cap Equities. ILF tracks S&P Latin America 40 Index, while VEA tracks FTSE Developed All Cap ex US Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.48% for ILF and 0.03% for VEA.

Which has better risk-adjusted returns?

ILF currently has the higher Sharpe Ratio (1.82 vs 1.81), 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.