Dividend comparison
IEFA vs VEU: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for iShares Core MSCI EAFE ETF and Vanguard FTSE All-World ex-US ETF, side by side. Updated October 21, 2026.
IEFA vs VEU: key differences
The short answer, from the latest data on this page.
- Fees. VEU is cheaper at 0.04% a year versus 0.07% for IEFA. On $10,000 that is $3 a year less in fees.
- Income. IEFA pays more income, yielding 3.40% over the last twelve months versus 2.40% for VEU. That is about $100 more a year on $10,000. IEFA pays semi-annual, VEU pays annual.
- Performance. Over the last 5 years, VEU returned 46.9% versus 43.9% for IEFA, with dividends reinvested. $10,000 would have grown to $14,687 in VEU and $14,389 in IEFA.
- Risk. Their worst declines over the last 5 years were similar: -30.0% for IEFA and -28.5% for VEU from peak to trough.
- Diversification. VEU holds 3,823 positions and IEFA holds 2,626. The ten largest positions make up 12.2% of IEFA and 14.8% of VEU.
- Overlap. At least 25% of the two portfolios overlap by weight, across 72 shared holdings.
- Dividend growth. IEFA grew its yearly payout 7.7% a year over the last 4 years, versus 4.8% for VEU.
Bottom line: IEFA fits better if you care most about more income today and faster dividend growth. VEU fits better if you care most about lower fees and stronger 5-year returns.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | IEFA iShares Core MSCI EAFE ETF | VEU Vanguard FTSE All-World ex-US ETF |
|---|---|---|
| Dividend yield (TTM) | 3.40% | 2.40% |
| Dividend / share (TTM) | $3.29 | $1.96 |
| Payout frequency | Semi-annual | Annual |
| Last dividend | $1.5781 on Jun 18, 2026 | $0.1968 on Sep 22, 2026 |
| Ex-dividend date | Jun 15, 2026 | Sep 18, 2026 |
| Dividend growth (CAGR) | 7.7% over 4 yrs | 4.8% over 4 yrs |
| Price | $96.71 | $81.85 |
| Dividend growth streak | 5 years | 1 year |
| Beta | 0.89 | 0.91 |
| Max drawdown (5Y) | -30.0% | -28.5% |
| Market cap | $190.07B | $95.88B |
| Exchange | CBOE | AMEX |
| Expense ratio | 0.07% | 0.04% |
| Assets under management | $190.09B | $95.70B |
| Number of holdings | 2626 | 3823 |
| Top 10 concentration | 12.2% | 14.8% |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
IEFA
$28.34/mo
$340 /yr at 3.40% yield
VEU
$19.96/mo
$240 /yr at 2.40% yield
Dividend history
Total dividends paid per share in each calendar year. IEFA pays semi-annual; VEU pays annual.
| Year | IEFA | VEU |
|---|---|---|
| 2025 | $3.1771 | $2.2706 |
| 2024 | $2.4401 | $1.8615 |
| 2023 | $2.2518 | $1.8634 |
| 2022 | $1.7762 | $1.5639 |
| 2021 | $2.3656 | $1.8845 |
Strategy: International equity
Funds that hold companies outside the United States, either across developed markets like Europe, Japan and Canada, across emerging markets like China, India and Taiwan, or both. Index providers disagree on edge cases such as whether South Korea is developed or emerging and whether small caps or Canada are included, which explains most of the gap between similar-looking funds. Dividend yields are usually higher than in the US market.
Returns are exposed to currency moves and to political and regulatory risk that US investors do not face at home, and emerging markets add wide swings.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $14,389 in IEFA and $14,687 in VEU.
| Period | IEFA | VEU |
|---|---|---|
| 1 month | -1.31% | -2.40% |
| 3 months | 0.48% | 0.34% |
| Year to date | 8.10% | 11.27% |
| 1 year | 8.87% | 12.17% |
| 3 years | 66.45% | 73.74% |
| 5 years | 43.89% | 46.87% |
- IEFA
- VEU
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
- IEFA
- VEU
IEFA vs VEU holdings overlap
At least 25% overlap by weight, with 72 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
| Largest shared holdings | IEFA weight | VEU weight |
|---|---|---|
| ASML.ASASML HOLDING | 2.56% | 1.69% |
| HSBA.LHSBC HOLDINGS PLC | 1.29% | 0.83% |
| ROP.SWROCHE PS PAR AG | 1.28% | 0.71% |
| SHEL.LSHELL | 1.21% | 0.68% |
| NOVN.SWNOVARTIS AG | 1.10% | 0.65% |
| 8306.TMITSUBISHI UFJ FINANCIAL GROUP | 0.93% | 0.62% |
| AZN.LASTRAZENECA PLC | 1.00% | 0.59% |
| NESN.SWNESTLE SA | 1.02% | 0.57% |
| SIE.DESIEMENS N AG | 0.88% | 0.55% |
| BHP.AXBHP GROUP LTD | 0.84% | 0.53% |
Top 10 holdings
Largest positions by portfolio weight.
IEFA2626 holdings total
VEU3823 holdings total
| Name | Weight |
|---|---|
| 2330.TWTaiwan Semiconductor Manufacturing Co Ltd | 4.66% |
| 005930.KSSamsung Electronics Co Ltd | 2.22% |
| 000660.KSSK hynix Inc | 1.82% |
| ASML.ASASML Holding NV | 1.69% |
| 0700.HKTencent Holdings Ltd | 0.83% |
| HSBA.LHSBC Holdings PLC | 0.83% |
| ROP.SWRoche Holding AG | 0.71% |
| SHEL.LShell PLC | 0.68% |
| RY.TORoyal Bank of Canada | 0.67% |
| NOVN.SWNovartis AG | 0.65% |
Quick verdict
IEFA fits better if you care most about more income today and faster dividend growth. VEU fits better if you care most about lower fees and stronger 5-year returns. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
Forecast dividend income, track payouts, and see how IEFA vs VEU fits with the rest of your holdings. Free to start — no credit card required for the trial.
Frequently asked questions
Is IEFA or VEU better for dividend income?
It depends on your goals. IEFA currently yields 3.40% Trailing Twelve Months (TTM) while VEU yields 2.40%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between IEFA and VEU?
iShares Core MSCI EAFE ETF (IEFA) is an ETF listed on CBOE. Vanguard FTSE All-World ex-US ETF (VEU) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, IEFA or VEU?
VEU has the lower expense ratio. IEFA charges 0.07% a year and VEU charges 0.04%, a difference of $3 a year on a $10,000 investment.
Which has performed better, IEFA or VEU?
Over the last 5 years, VEU has the higher total return with dividends reinvested: IEFA returned 43.9% and VEU returned 46.9%. Past performance does not predict future returns.
Which is riskier, IEFA or VEU?
Measured by the worst peak-to-trough decline over the last five years, IEFA has been riskier: IEFA fell as much as 30.0% and VEU as much as 28.5%. Their betas are 0.89 and 0.91.
How much do IEFA and VEU overlap?
At least 25% of the two portfolios overlap by weight, across 72 shared holdings. The largest shared positions are ASML.AS, HSBA.L, ROP.SW. Holding both still adds meaningful diversification.
How often do IEFA and VEU pay dividends?
IEFA pays semi-annual and VEU pays annual.
How much income does $10,000 in IEFA vs VEU generate?
At current TTM yields, $10,000 in IEFA would generate roughly $28.34 per month ($340 annually). The same amount in VEU would produce about $19.96 per month ($240 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both IEFA and VEU?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare IEFA vs VEU with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how IEFA and VEU fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.