ETF Comparison
VEA vs IEFA: Which Is the Better Pick in 2026?
A head-to-head comparison of Vanguard FTSE Developed Markets ETF and iShares Core MSCI EAFE ETF covering yield, cost, risk, and income potential.
Data updated April 5, 2026
Side-by-side snapshot
| VEA | IEFA | |
|---|---|---|
| Full name | Vanguard FTSE Developed Markets ETF | iShares Core MSCI EAFE ETF |
| Issuer | Vanguard | BlackRock |
| Price | $65.14 | $91.91 |
| Distribution yield | 2.86% | 3.23% |
| Expense ratio | 0.03% | 0.07% |
| AUM | $307.3B | $182.6B |
| Distribution frequency | Quarterly | Semi-Annual |
| Underlying index | FTSE Developed All Cap ex US Index | MSCI EAFE IMI Index |
| Objective | Track the FTSE Developed All Cap ex US Index. | Provide exposure to the fund's underlying index or strategy per issuer materials. |
| Asset class | Equity | Equity |
| Inception date | 07/20/2007 | 10/18/2012 |
| Beta | 1.06 | 1.02 |
| Last dividend | $0.11 | $1.71 |
| Ex-dividend date | 03/20/2026 | 12/16/2025 |
Visual comparison
Key metrics
Projected income on $10K
Projections assume the current yield and share price remain constant. Actual results will vary.
Quick verdict
VEA (Vanguard FTSE Developed Markets ETF) and IEFA (iShares Core MSCI EAFE ETF) are both popular quarterly-pay track the ftse developed all cap ex us index. ETFs, but they take different approaches.
IEFA offers the higher yield at 3.23% vs 2.86% 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: VEA is linked to FTSE Developed All Cap ex US Index while IEFA tracks MSCI EAFE IMI Index, which means their performance drivers differ.
VEA is the larger fund by assets ($307.3B), which generally means tighter spreads and better liquidity.
Deep dive
Yield & income
On a $10,000 investment, VEA would generate roughly $23.83/month while IEFA would produce $26.92/month at current distribution rates. Both pay quarterly distributions.
Cost & efficiency
Over 10 years on $10,000, VEA would cost approximately $30 in fees vs $70 for IEFA (simplified, not compounded). The $40.00 difference may be offset by yield or performance.
Strategy & risk
VEA tracks FTSE Developed All Cap ex US Index with a track the ftse developed all cap ex us index. approach, while IEFA tracks MSCI EAFE IMI Index using a provide exposure to the fund's underlying index or strategy per issuer materials. strategy. Beta is 1.06 for VEA and 1.02 for IEFA, indicating IEFA is less volatile relative to the market.
Fund details
VEA is managed by Vanguard (launched 07/20/2007) with $307.3B in assets. IEFA is managed by BlackRock (launched 10/18/2012) with $182.6B in assets.
Income calculator
See how much monthly income a hypothetical investment would generate in each ETF at current yields.
Frequently asked questions
Is VEA or IEFA 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 VEA and IEFA?
VEA (Vanguard FTSE Developed Markets ETF) tracks FTSE Developed All Cap ex US Index with a track the ftse developed all cap ex us index. strategy, while IEFA (iShares Core MSCI EAFE ETF) tracks MSCI EAFE IMI Index with a provide exposure to the fund's underlying index or strategy per issuer materials. approach. They are issued by Vanguard and BlackRock respectively.
Can I hold both VEA and IEFA?
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, VEA or IEFA?
VEA has an expense ratio of 0.03% while IEFA charges 0.07%. Lower fees mean more of your investment returns stay in your pocket over time.
How much income does $10,000 in VEA vs IEFA generate?
At current yields, $10,000 in VEA would generate roughly $23.83 per month ($286.00 annually). The same in IEFA would produce about $26.92 per month ($323.00 annually).
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