VXUS vs. IEFA
Compare and contrast key facts about Vanguard Total International Stock ETF (VXUS) and iShares Core MSCI EAFE ETF (IEFA).
VXUS and IEFA are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VXUS is a passively managed fund by Vanguard that tracks the performance of the MSCI All Country World ex USA Investable Market Index. It was launched on Jan 26, 2011. 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 VXUS 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: VXUS or IEFA.
Key characteristics
| VXUS | IEFA | |
|---|---|---|
| YTD Return | 0.20% | 0.80% |
| 1Y Return | 6.40% | 7.25% |
| 3Y Return (Ann) | -0.73% | 1.00% |
| 5Y Return (Ann) | 4.72% | 5.64% |
| 10Y Return (Ann) | 3.98% | 4.47% |
| Sharpe Ratio | 0.51 | 0.57 |
| Daily Std Dev | 12.45% | 12.48% |
| Max Drawdown | -35.97% | -34.78% |
| Current Drawdown | -5.62% | -4.73% |
Correlation
The correlation between VXUS and IEFA is 0.97, 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.
Performance
VXUS vs. IEFA - Performance Comparison
In the year-to-date period, VXUS achieves a 0.20% return, which is significantly lower than IEFA's 0.80% return. Over the past 10 years, VXUS has underperformed IEFA with an annualized return of 3.98%, while IEFA has yielded a comparatively higher 4.47% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VXUS vs. IEFA - Expense Ratio Comparison
Risk-Adjusted Performance
VXUS vs. IEFA - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total International Stock ETF (VXUS) 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
VXUS vs. IEFA - Dividend Comparison
VXUS's dividend yield for the trailing twelve months is around 3.43%, more than IEFA's 3.18% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VXUS Vanguard Total International Stock ETF | 3.43% | 3.24% | 3.09% | 3.10% | 2.14% | 3.06% | 3.18% | 2.73% | 2.93% | 2.83% | 3.40% | 2.70% |
IEFA iShares Core MSCI EAFE ETF | 3.18% | 3.20% | 2.70% | 3.32% | 1.90% | 3.18% | 3.46% | 2.57% | 2.96% | 2.63% | 3.10% | 2.16% |
Drawdowns
VXUS vs. IEFA - Drawdown Comparison
The maximum VXUS drawdown since its inception was -35.97%, roughly equal to the maximum IEFA drawdown of -34.78%. Use the drawdown chart below to compare losses from any high point for VXUS and IEFA. For additional features, visit the drawdowns tool.
Volatility
VXUS vs. IEFA - Volatility Comparison
Vanguard Total International Stock ETF (VXUS) and iShares Core MSCI EAFE ETF (IEFA) have volatilities of 3.11% and 3.10%, 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.