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ETF Comparison

EFA vs VEA: Which Is the Better Pick in 2026?

A head-to-head comparison of iShares MSCI EAFE ETF and Vanguard FTSE Developed Markets ETF covering yield, cost, risk, and income potential.

Data updated July 15, 2026

ETFs481
Total AUM$4450B

ETFs and AUM reflect what Dividend Vision tracks β€” the issuer's full lineup may be larger.

iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

See our curated list of related YouTube videos on EFA.

ETFs115
Total AUM$4484B

ETFs and AUM reflect what Dividend Vision tracks β€” the issuer's full lineup may be larger.

Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.

See our curated list of related YouTube videos on VEA.

Side-by-side snapshot

EFAVEA
Full nameiShares MSCI EAFE ETFVanguard FTSE Developed Markets ETF
IssueriSharesVanguard
Last Close$103.96 as of July 15, 2026$70.60 as of July 15, 2026
Distribution yield3.15%2.14%
Distribution Safety Score 7089
Expense ratio0.33%0.05%
AUM$77.5B$223B
Distribution frequencySemi-AnnualQuarterly
Underlying indexMSCI EAFE Index (developed markets ex U.S. and Canada)FTSE Developed All Cap ex US Index
ObjectiveProvide exposure to the fund's underlying index or strategy per issuer materials.Track the FTSE Developed All Cap ex US Index.
Asset classEquityEquity
Inception date08/12/200107/20/2007
Beta0.870.97
Last dividend$1.6360$0.3770
Ex-dividend date06/15/202606/18/2026

Bottom lineChoose EFA if you want higher current income (3.15% vs 2.14% for VEA). Choose VEA if you want broad equity exposure.

Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

EFA has lagged VEA over the trailing twelve months, posting a 20.88% total return against 27.58%. The lead holds up over 10 years too: VEA has compounded at 10.18% a year, against 9.41% for EFA. Figures are total returns: price change plus every distribution reinvested.

SymbolYTD1Y3Y5Y10YSince Jul 2007Volatility Sharpe Sortino Max drawdown
EFA8.83%20.88%15.64%8.89%9.41%4.64%15.2%0.670.96-14.1%
VEA12.49%27.58%17.99%9.76%10.18%5.21%15.6%0.781.12-13.5%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 14, 2026. YTD and 1Y are cumulative; longer windows are annualized. β€œSince Jul 2007” measures every fund from July 26, 2007 β€” the youngest fund's first trading day β€” so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) β€” higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window β€” shallower is better.

Quick verdict

EFA (iShares MSCI EAFE ETF) and VEA (Vanguard FTSE Developed Markets ETF) are both dividend ETFs, but they take different approaches.

EFA offers the higher yield at 3.15% vs 2.14% for VEA. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VEA is cheaper with an expense ratio of 0.05% compared to 0.33%.

They track different benchmarks: EFA is linked to MSCI EAFE Index (developed markets ex U.S. and Canada) while VEA tracks FTSE Developed All Cap ex US Index, which means their performance drivers differ.

VEA is the larger fund by assets ($223B), which generally means tighter spreads and better liquidity.

Who should choose each?

Choose EFA

iShares MSCI EAFE ETF

  • Want higher current income β€” EFA yields 3.15% vs 2.14% for VEA.
  • Want broad equity exposure.

Choose VEA

Vanguard FTSE Developed Markets ETF

  • Want broad equity exposure.
  • Want to keep costs low β€” a 0.05% expense ratio vs 0.33% for EFA.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, EFA would generate roughly $26.25/month, while VEA would produce $17.83/month, at current distribution rates.

EFA yield3.15%
VEA yield2.14%
Monthly diff on $10K$8.42

Cost & efficiency

Over 10 years on $10,000, EFA would cost approximately $330 in fees vs $50 for VEA (simplified, not compounded). The $280.00 difference may be offset by yield or performance.

EFA ER0.33%
VEA ER0.05%

Strategy & risk

EFA tracks MSCI EAFE Index (developed markets ex U.S. and Canada) with an index approach, while VEA tracks FTSE Developed All Cap ex US Index with an international approach. Beta is 0.87 for EFA and 0.97 for VEA, indicating EFA is less volatile relative to the market.

EFA beta0.87
VEA beta0.97

Fund details

EFA is managed by iShares (launched 08/12/2001) with $77.5B in assets. VEA is managed by Vanguard (launched 07/20/2007) with $223B in assets.

EFA AUM$77.5B
VEA AUM$223B

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Frequently asked questions

Is EFA or VEA better for dividend income?

It depends on your goals. EFA currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between EFA and VEA?

EFA (iShares MSCI EAFE ETF) tracks MSCI EAFE Index (developed markets ex U.S. and Canada) with an index approach, while VEA (Vanguard FTSE Developed Markets ETF) tracks FTSE Developed All Cap ex US Index with an international approach. They are issued by iShares and Vanguard respectively.

Can I hold both EFA and VEA?

Yes β€” nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Which has lower fees, EFA or VEA?

EFA has an expense ratio of 0.33% while VEA charges 0.05%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in EFA vs VEA generate?

At current rates, $10,000 in EFA would generate roughly $26.25 per month ($315.00 annually). The same in VEA would produce about $17.83 per month ($214.00 annually).

Which has performed better historically, EFA or VEA?

EFA has lagged VEA over the trailing twelve months, posting a 20.88% total return against 27.58%. The lead holds up over 10 years too: VEA has compounded at 10.18% a year, against 9.41% for EFA. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

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