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Dividend Vision

ETF Comparison

EFA vs VEA: Same Neighborhood, Two International Indexes

A head-to-head of iShares MSCI EAFE and Vanguard FTSE Developed Markets covering construction, cost, and what each leaves out.

Updated October 16, 2026

How these figures are calculated: methodology.

Best for

  • EFAInvestors who want higher current income (3.25% paid over the past 12 months vs 2.45% for VEA).
  • VEAInvestors who want broad equity exposure.

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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

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

EFA has lagged VEA over the trailing twelve months, posting a 13.52% total return against 17.60%. The lead holds up over 10 years too: VEA has compounded at 9.84% a year, against 9.19% for EFA. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Jul 2007Volatility Sharpe Sortino Max drawdown
EFA9.54%13.52%18.17%8.67%9.19%4.55%15.2%0.831.21-14.1%
VEA12.29%17.60%20.30%9.34%9.84%5.07%15.7%0.911.33-13.5%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 16, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Jul 2007” measures every fund from July 26, 2007 — the start of shared available history — 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) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricEFAVEA
Full nameiShares MSCI EAFE ETFVanguard FTSE Developed Markets ETF
IssueriSharesVanguard
Underlying indexMSCI EAFE Index (developed markets ex U.S. and Canada)FTSE Developed All Cap ex US Index
Last Close$103.55 as of October 16, 2026$69.49 as of October 16, 2026
Distribution rate3.16%1.02%
Trailing 12-month yield3.25%2.45%
Distribution Safety Score™ 7170
Safety-Adjusted Yield 2.24%0.71%
Expense ratio0.32%0.03%
AUM$76.8B$230B
Distribution frequencySemi-AnnualQuarterly
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
Beta0.870.98
Last dividend$1.636$0.178
Ex-dividend date06/15/202609/18/2026

Bottom lineChoose EFA if you want higher current income (3.25% paid over the past 12 months vs 2.45% for VEA). Choose VEA if you want broad equity exposure.

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Income calculator

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

iShares
ETFs468
Total AUM$4.70T

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

iShares, operated by BlackRock, is one of the largest and most established ETF providers globally, known for offering broad, liquid index-tracking funds across nearly all asset classes and investment styles. The lineup encompasses a comprehensive range of strategies including core equity and bond exposure, dividend and income-focused funds, covered call strategies, ESG and thematic investments, factor-based approaches, alternatives, commodities, and municipal bonds, serving both individual and institutional investors. With numerous popular ticker symbols and extensive diversification across geographies, sectors, and investment objectives, iShares provides one of the market's widest selections of ETFs for building diversified portfolios.

See our curated list of related YouTube videos on EFA.

See all ETFs from iShares
Vanguard
ETFs116
Total AUM$4.71T

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

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on VEA.

See all ETFs from Vanguard

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Quick verdict

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

EFA has paid the higher yield over the past 12 months, 3.25% vs 2.45% for VEA. We compare trailing 12-month yields here because VEA's latest distribution annualizes to 1.02% against 2.45% actually paid over the past 12 months, so annualizing a single payment would misstate its income.

VEA is cheaper with an expense ratio of 0.03% compared to 0.32%.

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

VEA is the larger fund by assets ($230B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose EFA

iShares MSCI EAFE ETF

  • Want higher current income — EFA yields 3.25% paid over the past 12 months vs 2.45% for VEA.
  • Want broad equity exposure.

Choose VEA

Vanguard FTSE Developed Markets ETF

  • Want broad equity exposure.
  • Want to keep costs low — a 0.03% expense ratio vs 0.32% 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 $158.00 cash per distribution, while VEA would produce $25.50 cash per distribution, at current distribution rates.

EFA yield3.16%
VEA yield1.02%
Cash diff on $10K$132.50

Cost & efficiency

Over 10 years on $10,000, EFA would cost approximately $320 in fees vs $30 for VEA (simplified, not compounded). The $290.00 difference may be offset by yield or performance.

EFA ER0.32%
VEA ER0.03%

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 0.98 for VEA, making EFA the less volatile of the two by this measure.

EFA beta0.87
VEA beta0.98

Fund details

EFA is managed by iShares (launched 08/12/2001) with $76.8B in assets. VEA is managed by Vanguard (launched 07/20/2007) with $230B in assets.

EFA AUM$76.8B
VEA AUM$230B
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Frequently asked questions

What is the difference between EFA and VEA?

EFA (iShares MSCI EAFE ETF) tracks MSCI EAFE Index (developed markets ex U.S. and Canada). VEA (Vanguard FTSE Developed Markets ETF) tracks FTSE Developed All Cap ex US Index. Cost is 0.32% versus 0.03%; size is $76.8B versus $230B. Distributions are 3.16% and 1.02% as of October 2026. Breadth and Canada inclusion are typical live differences.

What is the current distribution rate for EFA and VEA?

EFA currently distributes 3.16% and VEA 1.02%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is EFA or VEA better for dividend income?

It depends on your goals. EFA has paid the higher trailing 12-month yield (3.25% vs 2.45%). We compare trailing 12-month yields here because VEA's latest distribution annualizes to 1.02% against 2.45% actually paid over the past 12 months, so annualizing a single payment would misstate its income. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

Can I hold both EFA and VEA?

Yes — 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.

Is EFA or VEA safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: EFA scores 71, VEA scores 70. Neither has a clear safety edge on that measure. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, EFA or VEA?

EFA has an expense ratio of 0.32% while VEA charges 0.03%. 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 $158.00 cash per distribution ($316.00 annually). The same in VEA would produce about $25.50 cash per distribution ($102.00 annually).

Which has performed better historically, EFA or VEA?

EFA has lagged VEA over the trailing twelve months, posting a 13.52% total return against 17.60%. The lead holds up over 10 years too: VEA has compounded at 9.84% a year, against 9.19% for EFA. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

EFA vs VEA — at a glance

Generated October 17, 2026.

Overview

EFA and VEA are both broad developed-markets ETFs tracking different indexes of non-U.S. stocks, each offering exposure to Europe, Japan, Australia, and other mature economies outside North America. This structural distinction shapes their holdings, yield, and volatility profiles.

How they differ

VEA's broader index exposure and larger asset base give it a cost advantage: 0.03% versus 0.32%, a gap of 0.29%. Beta-wise, EFA's 0.87 implies slightly lower volatility than VEA's 0.98, which may reflect its exclusion of smaller-cap names and its real-estate tilt versus VEA's all-cap design.

Who each is best for

  • EFA: Fits investors drawn to semi-annual distributions and willing to accept higher fees for MSCI EAFE's historical popularity and longer track record since 08/12/2001.
  • VEA: Designed for cost-conscious investors prioritizing low expenses and broad cap exposure across developed markets, with quarterly distribution flexibility and a larger fund ecosystem for tighter execution.

Key risks to know

  • Index-tracking variance: The two indexes weight countries, sectors, and company sizes differently. Overlap in holdings exists, but divergent index rules mean sector and cap-size tilts will differ, so returns may diverge even in the same market environment.
  • Real-estate exposure difference: EFA's inclusion of REITs adds property-market sensitivity absent from VEA's all-cap equity focus, introducing a structural risk that may or may not align with your intended developed-markets exposure.
  • Currency risk: Both funds hold foreign securities priced in euros, yen, pounds, and other currencies; a stronger dollar erodes returns, and a weaker dollar amplifies them, regardless of underlying stock performance.
  • Dividend-yield sustainability: EFA's 3.16% yield is markedly higher than VEA's 1.02%, warranting inspection of whether the gap reflects genuine cash flow or return-of-capital treatment that may erode NAV over time.
  • Beta differences: EFA's lower reported beta suggests historical volatility damping, but this may not persist if the MSCI EAFE's smaller-stock exclusion becomes a lagging factor in the next cycle.

Bottom line

If you prioritize lowest fees and broadest cap exposure, VEA's 0.03% expense ratio and all-cap index stand out; if you favor higher current yield and are comfortable with the MSCI EAFE framework, EFA offers 3.16% distributions, though the yield gap warrants verification of its durability. Past performance of either fund does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

How to read a fund's stats How expense ratios eat returns Correlation between two funds

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These comparisons follow the Dividend Vision methodology.