VEA vs IEFA: Developed Market ETFs — Vanguard vs iShares
VEA and IEFA both invest in stocks from developed economies outside the US — Europe, Japan, Australia, and more. VEA is cheaper and larger; IEFA is very similar.
VEA (Vanguard FTSE Developed Markets ETF) and IEFA (iShares Core MSCI EAFE ETF) both provide exposure to developed international stock markets — Europe, Japan, Australia, Canada, and others — excluding the US. VEA tracks the FTSE Developed All Cap ex US index with ~3,900 stocks at 0.05%; IEFA tracks the MSCI EAFE IMI index with ~2,900 stocks at 0.07%. Both include Canada (unlike the original MSCI EAFE, which excluded Canada). VEA has significantly more assets ($120B vs IEFA's $95B) and a slightly lower fee. Both are appropriate as the international stock component of a three-fund or global portfolio. The choice often comes down to your brokerage — Vanguard investors tend to prefer VEA; iShares/Fidelity investors tend to prefer IEFA.
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
Both funds trade commission-free at every major brokerage. Where to buy them →
📋 VEA vs IEFA: Key Facts Side by Side
| Metric | VEA | IEFA |
|---|---|---|
| Fund Name | Vanguard FTSE Developed Markets Index Fund ETF Shares | iShares Core MSCI EAFE ETF |
| Issuer | Vanguard | iShares |
| Tracks Index | FTSE Developed All Cap ex US | MSCI EAFE IMI |
| Expense Ratio | 0.03% ✓ | 0.07% |
| Cost per $10K/yr | $3.00 | $7.00 |
| AUM | $304.3B | $190.2B |
| Holdings | 3,900 | 2,900 |
| Inception | 2007 | 2012 |
| 1-Year Return | +15.99% | +10.31% |
| 3-Year Return | +20.94% | +18.80% |
| 5-Year Return | +9.93% | +8.83% |
| Dividend Yield | 2.41% | 3.40% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.00% | 0.01% |
AUM and returns updated Oct 15, 2026 from ETF BFF database; expense ratios verified against issuer filings. Returns are annualised. Not investment advice.
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📊 VEA vs IEFA: Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- want the lowest fees: saves ~$4/yr per $10K vs IEFA
- want geographic diversification beyond US stocks
- want geographic diversification beyond US stocks
- already use iShares and prefer staying within one fund family
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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