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VEA vs. IEFA
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VEA vs. IEFA

Last updated Jun 19, 2026

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

Performance

VEA vs. IEFA - Performance Comparison

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

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Returns By Period

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

VEA

1D
0.96%
1M
5.36%
YTD
16.56%
6M
18.46%
1Y
34.18%
3Y*
19.30%
5Y*
10.55%
10Y*
10.46%

IEFA

1D
0.50%
1M
3.68%
YTD
10.53%
6M
11.99%
1Y
24.29%
3Y*
16.23%
5Y*
9.02%
10Y*
9.55%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VEA vs. IEFA - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
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%

Correlation

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

VEA vs. IEFA - Sectors Allocation Comparison

Sectors
VEA
IEFA

Financial Services

23.3%
22.6%

Industrials

19.2%
20.1%

Technology

13.8%
11.6%

Healthcare

8.2%
9.7%

Basic Materials

7.5%
6.8%

Consumer Cyclical

7.5%
8.3%

Consumer Defensive

5.6%
6.2%

Energy

5.4%
3.6%

Communication Services

3.4%
4.7%

Utilities

3.3%
3.5%

Real Estate

2.7%
2.9%

Financial Services

VEA
23.3%
IEFA
22.6%

Industrials

VEA
19.2%
IEFA
20.1%

Technology

VEA
13.8%
IEFA
11.6%

Healthcare

VEA
8.2%
IEFA
9.7%

Basic Materials

VEA
7.5%
IEFA
6.8%

Consumer Cyclical

VEA
7.5%
IEFA
8.3%

Consumer Defensive

VEA
5.6%
IEFA
6.2%

Energy

VEA
5.4%
IEFA
3.6%

Communication Services

VEA
3.4%
IEFA
4.7%

Utilities

VEA
3.3%
IEFA
3.5%

Real Estate

VEA
2.7%
IEFA
2.9%

Compare stocks, funds, or ETFs

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

Vanguard FTSE Developed Markets ETF

iShares Core MSCI EAFE ETF

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

Return for Risk

VEA vs. IEFA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VEA
VEA Risk / Return Rank: 6767
Overall Rank
VEA Sharpe Ratio Rank: 6969
Sharpe Ratio Rank
VEA Sortino Ratio Rank: 6767
Sortino Ratio Rank
VEA Omega Ratio Rank: 6969
Omega Ratio Rank
VEA Calmar Ratio Rank: 6464
Calmar Ratio Rank
VEA Martin Ratio Rank: 6666
Martin Ratio Rank
IEFA
IEFA Risk / Return Rank: 4848
Overall Rank
IEFA Sharpe Ratio Rank: 4949
Sharpe Ratio Rank
IEFA Sortino Ratio Rank: 4949
Sortino Ratio Rank
IEFA Omega Ratio Rank: 4848
Omega Ratio Rank
IEFA Calmar Ratio Rank: 4545
Calmar Ratio Rank
IEFA Martin Ratio Rank: 5151
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.

VEA vs. IEFA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed Markets ETF (VEA) and iShares Core MSCI EAFE ETF (IEFA). 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.

VEAIEFADifference
Sharpe ratioReturn per unit of total volatility
2.08
1.58

+0.50

Sortino ratioReturn per unit of downside risk
2.84
2.27

+0.57

Omega ratioGain probability vs. loss probability

1.38

1.29

+0.09

Calmar ratioReturn relative to maximum drawdown

2.95

2.12

+0.83

Martin ratioReturn relative to average drawdown

11.39

8.08

+3.31

VEA vs. IEFA - Sharpe Ratio Comparison

The current VEA Sharpe Ratio is 2.08, which is higher than the IEFA Sharpe Ratio of 1.58. The chart below compares the historical Sharpe Ratios of VEA and IEFA, 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

VEA vs. IEFA - Drawdown Comparison

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

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Drawdown Indicators

VEAIEFADifference

Max Drawdown

Largest peak-to-trough decline

-60.68%

-34.78%

-25.90%

Max Drawdown (1Y)

Largest decline over 1 year

-11.63%

-11.50%

-0.13%

Max Drawdown (3Y)

Largest decline over 3 years

-13.45%

-13.76%

+0.31%

Max Drawdown (5Y)

Largest decline over 5 years

-29.71%

-30.41%

+0.70%

Max Drawdown (10Y)

Largest decline over 10 years

-35.73%

-34.78%

-0.95%

Current Drawdown

Current decline from peak

0.00%

0.00%

0.00%

Average Drawdown

Average peak-to-trough decline

-13.26%

-6.67%

-6.59%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.01%

3.02%

-0.01%

Volatility

VEA vs. IEFA - Volatility Comparison

Vanguard FTSE Developed Markets ETF (VEA) has a higher volatility of 6.51% compared to iShares Core MSCI EAFE ETF (IEFA) at 5.07%. This indicates that VEA's price experiences larger fluctuations and is considered to be riskier than IEFA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VEAIEFADifference

Volatility (1M)

Calculated over the trailing 1-month period

6.51%

5.07%

+1.44%

Volatility (6M)

Calculated over the trailing 6-month period

14.42%

13.10%

+1.32%

Volatility (1Y)

Calculated over the trailing 1-year period

16.51%

15.44%

+1.07%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.71%

16.59%

+0.12%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

17.40%

17.30%

+0.10%

VEA vs. IEFA - Expense Ratio Comparison

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

Dividends

VEA vs. IEFA - Dividend Comparison

VEA's dividend yield for the trailing twelve months is around 3.12%, less than IEFA's 3.38% 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, VEA and IEFA 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, VEA dropped -60.68% vs IEFA's -34.78%.

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.

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

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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