VEA vs. IEFA
Compare and contrast key facts about Vanguard FTSE Developed Markets ETF (VEA) and iShares Core MSCI EAFE ETF (IEFA).
VEA and IEFA are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VEA is a passively managed fund by Vanguard that tracks the performance of the MSCI EAFE Index. It was launched on Jul 20, 2007. IEFA is a passively managed fund by iShares that tracks the performance of the MSCI EAFE Investable Market Index. It was launched on Oct 18, 2012. Both VEA and IEFA 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: VEA or IEFA.
Performance
VEA vs. IEFA - Performance Comparison
Returns By Period
In the year-to-date period, VEA achieves a 5.20% return, which is significantly higher than IEFA's 4.58% return. Both investments have delivered pretty close results over the past 10 years, with VEA having a 5.25% annualized return and IEFA not far behind at 5.15%.
VEA
5.20%
-1.96%
-1.17%
11.93%
6.00%
5.25%
IEFA
4.58%
-2.61%
-2.29%
11.11%
5.53%
5.15%
Key characteristics
| VEA | IEFA | |
|---|---|---|
| Sharpe Ratio | 0.93 | 0.87 |
| Sortino Ratio | 1.35 | 1.27 |
| Omega Ratio | 1.17 | 1.15 |
| Calmar Ratio | 1.45 | 1.27 |
| Martin Ratio | 4.30 | 3.83 |
| Ulcer Index | 2.78% | 2.90% |
| Daily Std Dev | 12.79% | 12.80% |
| Max Drawdown | -60.70% | -34.78% |
| Current Drawdown | -7.15% | -8.19% |
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VEA vs. IEFA - Expense Ratio Comparison
VEA has a 0.05% 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%.
Correlation
The correlation between VEA and IEFA 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.
Risk-Adjusted Performance
VEA vs. IEFA - Risk-Adjusted Performance 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.
Dividends
VEA vs. IEFA - Dividend Comparison
VEA's dividend yield for the trailing twelve months is around 3.03%, less than IEFA's 3.15% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VEA Vanguard FTSE Developed Markets ETF | 3.03% | 3.16% | 2.91% | 3.16% | 2.04% | 3.04% | 3.35% | 2.77% | 3.05% | 2.92% | 3.68% | 2.60% |
IEFA iShares Core MSCI EAFE ETF | 3.15% | 3.20% | 2.70% | 3.32% | 1.90% | 3.18% | 3.46% | 2.57% | 2.96% | 2.63% | 3.10% | 2.16% |
Drawdowns
VEA vs. IEFA - Drawdown Comparison
The maximum VEA drawdown since its inception was -60.70%, 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. For additional features, visit the drawdowns tool.
Volatility
VEA vs. IEFA - Volatility Comparison
Vanguard FTSE Developed Markets ETF (VEA) and iShares Core MSCI EAFE ETF (IEFA) have volatilities of 3.55% and 3.68%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.