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 May 20, 2026

BlackRock

ETFs44

Total AUM$3107.6B

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

BlackRock is one of the world's largest asset managers and a major provider of ETFs across multiple investment strategies. The company's dividend-focused lineup emphasizes income-generating investments, with funds designed to deliver regular distributions to investors seeking yield. Their portfolio includes eight notable ETFs such as BALI (emerging markets income), DIVB (dividend equity), and DGRO (dividend growth), alongside complementary funds that span income, growth, and fixed-income strategies.

See our curated list of related YouTube videos on IEFA.

See all BlackRock ETFs

Vanguard

ETFs48

Total AUM$11763.3B

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 serve as core portfolio holdings for individual investors. Their fund lineup emphasizes core equity exposure and dividend income strategies, with offerings spanning domestic growth (VGT, VUG), broad market indices (VOO), dividend-focused portfolios (VYM, VIG), and international high dividend yield opportunities (VONG, VYMI). The issuer's seven funds are characterized by expense ratios among the industry's lowest and a focus on long-term, buy-and-hold investors seeking diversified equity exposure.

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	BlackRock	Vanguard
Last Close	$96.10 as of May 20, 2026	$69.52 as of May 20, 2026
Distribution yield	2.89%	2.09%
Expense ratio	0.07%	0.03%
AUM	$180.7B	$304.3B
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	0.91	0.97
Last dividend	$1.71	$0.11
Ex-dividend date	12/16/2025	03/20/2026

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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.

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 2.89% vs 2.09% 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 0.03% 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 ($304.3B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, IEFA would generate roughly $24.08/month, while VEA would produce $17.42/month, at current distribution rates.

IEFA yield2.89%

VEA yield2.09%

Monthly diff on $10K$6.67

Cost & efficiency

Over 10 years on $10,000, IEFA would cost approximately $70 in fees vs $30 for VEA (simplified, not compounded). The $40.00 difference may be offset by yield or performance.

IEFA ER0.07%

VEA ER0.03%

Strategy & risk

IEFA tracks MSCI EAFE IMI Index with an index approach, while VEA tracks FTSE Developed All Cap ex US Index using an international strategy. Beta is 0.91 for IEFA and 0.97 for VEA, indicating IEFA is less volatile relative to the market.

IEFA beta0.91

VEA beta0.97

Fund details

IEFA is managed by BlackRock (launched 10/18/2012) with $180.7B in assets. VEA is managed by Vanguard (launched 07/20/2007) with $304.3B in assets.

IEFA AUM$180.7B

VEA AUM$304.3B

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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 strategy, while VEA (Vanguard FTSE Developed Markets ETF) tracks FTSE Developed All Cap ex US Index with an international approach. They are issued by BlackRock 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 0.03%. 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 $24.08 per month ($289.00 annually). The same in VEA would produce about $17.42 per month ($209.00 annually).

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IEFA vs VEA — at a glance

Generated April 2026 from current fund data.

Overview

IEFA and VEA are both low-cost ETFs tracking developed markets outside the US, but they differ in their index methodology and resulting portfolio composition. IEFA follows the MSCI EAFE IMI Index (which includes mid and small caps), while VEA tracks the FTSE Developed All Cap ex US Index. This structural difference drives distinct yield profiles and regional weightings between the two funds.

How they differ

The biggest difference is index construction: IEFA includes mid and small-cap stocks via its IMI (Investable Market Index) approach, while VEA uses a "developed all cap" methodology that weights differently. This affects sector exposure and diversification—IEFA has historically tilted toward financials and industrials, while VEA's construction can produce different country and size allocations.

On yield, IEFA's distribution rate of 2.88% significantly outpaces VEA's 2.12%, a 76-basis-point spread. IEFA pays semi-annually; VEA pays quarterly, which may suit investors preferring more frequent income recognition. On costs, VEA holds a meaningful edge with a 0.03% expense ratio versus IEFA's 0.07%—a 4-basis-point annual savings that compounds over time.

By scale, VEA dominates with $282 billion in AUM versus IEFA's $170 billion, suggesting tighter spreads and deeper liquidity on VEA.

Who each is best for

IEFA: Investors seeking modestly higher current yield and exposure to mid-cap developed markets who don't mind semi-annual distributions and can tolerate the slightly higher fee.

VEA: Cost-conscious long-term holders who prefer quarterly income, value the lowest possible expense ratio, and want exposure to a larger, deeper fund with tighter trading spreads.

Key risks to know

Index tracking differences: MSCI EAFE IMI and FTSE Developed All Cap ex US produce meaningfully different country and sector weightings, so performance will diverge over time. Neither tracks "the same" international market.

Developed market currency risk: Both funds hold foreign-denominated assets. Currency fluctuations against the dollar can amplify or dampen returns independent of underlying stock performance.

Yield sustainability: IEFA's 2.88% yield is higher than the broader developed market dividend yield; monitor whether this reflects temporary strength or reliance on smaller-cap dividend cuts during downturns.

Interest rate sensitivity: International equity multiples are sensitive to Fed and ECB policy. Rising rates can pressure valuations, particularly in Europe where growth is more modest.

Bottom line

If you prioritize yield and are willing to accept a marginally higher fee and semi-annual distributions, IEFA's 76-basis-point yield advantage may be worth it. If minimizing costs and receiving quarterly income matter more, VEA's 4-basis-point fee advantage and larger asset base make it the leaner choice. Neither fund guarantees future returns; past performance is not predictive.

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