ETF Comparison

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

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

Data updated July 4, 2026

iShares

ETFs481

Total AUM$4451B

ETFs and AUM reflect what Dividend Vision tracks — 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 IEFA.

See all iShares ETFs

Vanguard

ETFs115

Total AUM$4484B

ETFs and AUM reflect what Dividend Vision tracks — 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.

See all Vanguard ETFs

Side-by-side snapshot

	IEFA	VEA
Full name	iShares Core MSCI EAFE ETF	Vanguard FTSE Developed Markets ETF
Issuer	iShares	Vanguard
Last Close	$97.30 as of July 4, 2026	$70.81 as of July 4, 2026
Distribution yield	3.24%	2.13%
Distribution Safety Score	75	89
Expense ratio	0.07%	0.05%
AUM	$182B	$223B
Distribution frequency	Semi-Annual	Quarterly
Underlying index	MSCI EAFE IMI Index	FTSE Developed All Cap ex US Index
Objective	Provide exposure to the fund's underlying index or strategy per issuer materials.	Track the FTSE Developed All Cap ex US Index.
Asset class	Equity	Equity
Inception date	10/18/2012	07/20/2007
Beta	0.89	0.97
Last dividend	$1.5780	$0.3770
Ex-dividend date	12/15/2026	06/18/2026

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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

IEFA has lagged VEA over the trailing twelve months, posting a 20.99% total return against 27.22%. The lead holds up over 10 years too: VEA has compounded at 10.33% a year, against 9.73% for IEFA. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since Oct 2012	Volatility	Sharpe	Sortino	Max drawdown
IEFA	9.46%	20.99%	16.79%	8.84%	9.73%	8.35%	15.3%	0.73	1.06	-13.8%
VEA	12.23%	27.22%	18.71%	9.75%	10.33%	8.76%	15.6%	0.81	1.18	-13.5%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Oct 2012” measures every fund from October 22, 2012 — the youngest fund's first trading day — 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.

Quick verdict

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

IEFA offers the higher yield at 3.24% vs 2.13% 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 0.07%.

They track different benchmarks: IEFA is linked to MSCI EAFE IMI Index 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.

Deep dive

Yield & income

On a $10,000 investment, IEFA would generate roughly $27.00/month, while VEA would produce $17.75/month, at current distribution rates.

IEFA yield3.24%

VEA yield2.13%

Monthly diff on $10K$9.25

Cost & efficiency

Over 10 years on $10,000, IEFA would cost approximately $70 in fees vs $50 for VEA (simplified, not compounded). The $20.00 difference may be offset by yield or performance.

IEFA ER0.07%

VEA ER0.05%

Strategy & risk

IEFA tracks MSCI EAFE IMI Index with an index approach, while VEA tracks FTSE Developed All Cap ex US Index with an international approach. Beta is 0.89 for IEFA and 0.97 for VEA, indicating IEFA is less volatile relative to the market.

IEFA beta0.89

VEA beta0.97

Fund details

IEFA is managed by iShares (launched 10/18/2012) with $182B in assets. VEA is managed by Vanguard (launched 07/20/2007) with $223B in assets.

IEFA AUM$182B

VEA AUM$223B

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Frequently asked questions

Is IEFA or VEA better for dividend income?

It depends on your goals. IEFA 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 IEFA and VEA?

IEFA (iShares Core MSCI EAFE ETF) tracks MSCI EAFE IMI Index 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 IEFA and VEA?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, IEFA or VEA?

IEFA has an expense ratio of 0.07% 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 IEFA vs VEA generate?

At current rates, $10,000 in IEFA would generate roughly $27.00 per month ($324.00 annually). The same in VEA would produce about $17.75 per month ($213.00 annually).

Which has performed better historically, IEFA or VEA?

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IEFA vs VEA — at a glance

Generated July 2026 from current fund data.

Overview

IEFA and VEA are both large, passive equity ETFs tracking developed markets outside the US, but they differ in underlying index construction and yield characteristics. IEFA uses the MSCI EAFE IMI Index, which includes mid and small-cap stocks alongside large-caps; VEA tracks the FTSE Developed All Cap ex US Index. The funds serve nearly identical strategic purposes—broad developed-market exposure—but deliver different income streams and have slightly different risk profiles.

How they differ

The biggest difference is index scope: IEFA includes the full mid-cap and small-cap spectrum (IMI = Investable Market Index), while VEA's FTSE index emphasizes large-cap, though both include all-cap exposure. This drives a meaningful yield gap: IEFA distributes 3.24% against VEA's 2.13%, a 111-basis-point spread that compounds over time. VEA costs marginally less (0.05% vs. 0.07% expense ratio) and holds far more assets ($223B vs. $182B), giving it tighter trading spreads. IEFA rebalances semi-annually; VEA quarterly. VEA's beta of 0.97 sits closer to market-like volatility, while IEFA's 0.89 suggests modestly lower swings relative to its broader small-cap tilt.

Who each is best for

IEFA: Investors seeking broader exposure across the developed-markets spectrum and willing to accept a mid-and-small-cap sleeve for higher current yield; those comfortable with semi-annual rebalancing.

VEA: Income-focused investors preferring lower expenses and quarterly distributions; those who prioritize the largest, most-liquid developed-market names and Vanguard's scale.

Key risks to know

Index composition risk: IEFA's inclusion of mid-caps and small-caps exposes it to less-liquid and less-correlated securities; in stressed markets, these holdings can widen bid-ask spreads and increase tracking error relative to the broader index.

Yield sustainability and currency headwinds: Both funds' distributions depend on underlying dividend growth in developed markets, where yields are structural and less likely to surge; foreign-exchange fluctuations (particularly versus the euro and yen) can dampen returns for dollar-based investors.

Geographic concentration: Both are heavily weighted to Europe and Japan; economic slowdown in those regions, regulatory shifts (especially in the EU), or divergence in central-bank policy can pressure valuations across both portfolios simultaneously.

Beta divergence in rallies: VEA's higher beta (0.97 vs. 0.89) means it will lag during broad upswings but outperform in downturns; IEFA's lower beta suggests it may lag in bull markets where small-caps lead.

Bottom line

If you prioritize current income and can tolerate a broader (and slightly smaller-cap-heavy) developed-markets index, IEFA's 3.24% distribution and IMI structure offer a different income profile. If you value simplicity, lower costs, and an emphasis on large-cap stability with quarterly rebalancing, VEA's 0.05% expense ratio and larger asset base provide execution-focused efficiency. Neither fund promises outperformance; both represent the core developed-markets equity sleeve, and carry currency and geopolitical exposure inherent to the region.

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