Dividend comparison
VEA vs IEFA: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Vanguard FTSE Developed Markets ETF and iShares Core MSCI EAFE ETF, side by side. Updated October 21, 2026.
VEA vs IEFA: key differences
The short answer, from the latest data on this page.
- Fees. VEA is cheaper at 0.03% a year versus 0.07% for IEFA. On $10,000 that is $4 a year less in fees.
- Income. IEFA pays more income, yielding 3.40% over the last twelve months versus 2.44% for VEA. That is about $96 more a year on $10,000. VEA pays quarterly, IEFA pays semi-annual.
- Performance. Over the last 5 years, VEA returned 51.8% versus 43.9% for IEFA, with dividends reinvested. $10,000 would have grown to $15,183 in VEA and $14,389 in IEFA.
- Risk. Their worst declines over the last 5 years were similar: -29.3% for VEA and -30.0% for IEFA from peak to trough.
- Diversification. VEA holds 3,873 positions and IEFA holds 2,626. The ten largest positions make up 13.2% of VEA and 12.2% of IEFA.
- Overlap. At least 33% of the two portfolios overlap by weight, across 79 shared holdings.
- Dividend growth. IEFA grew its yearly payout 7.7% a year over the last 4 years, versus 5.6% for VEA.
Bottom line: VEA fits better if you care most about lower fees and stronger 5-year returns. IEFA fits better if you care most about more income today and faster dividend growth.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | VEA Vanguard FTSE Developed Markets ETF | IEFA iShares Core MSCI EAFE ETF |
|---|---|---|
| Dividend yield (TTM) | 2.44% | 3.40% |
| Dividend / share (TTM) | $1.70 | $3.29 |
| Payout frequency | Quarterly | Semi-annual |
| Last dividend | $0.1775 on Sep 22, 2026 | $1.5781 on Jun 18, 2026 |
| Ex-dividend date | Sep 18, 2026 | Jun 15, 2026 |
| Dividend growth (CAGR) | 5.6% over 4 yrs | 7.7% over 4 yrs |
| Price | $69.78 | $96.71 |
| Dividend growth streak | 1 year | 5 years |
| Beta | 0.97 | 0.89 |
| Max drawdown (5Y) | -29.3% | -30.0% |
| Market cap | $313.86B | $190.07B |
| Exchange | AMEX | CBOE |
| Expense ratio | 0.03% | 0.07% |
| Assets under management | $313.50B | $190.09B |
| Number of holdings | 3873 | 2626 |
| Top 10 concentration | 13.2% | 12.2% |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
VEA
$20.35/mo
$244 /yr at 2.44% yield
IEFA
$28.34/mo
$340 /yr at 3.40% yield
Dividend history
Total dividends paid per share in each calendar year. VEA pays quarterly; IEFA pays semi-annual.
| Year | VEA | IEFA |
|---|---|---|
| 2025 | $2.0094 | $3.1771 |
| 2024 | $1.6042 | $2.4401 |
| 2023 | $1.5112 | $2.2518 |
| 2022 | $1.2219 | $1.7762 |
| 2021 | $1.6140 | $2.3656 |
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 $15,183 in VEA and $14,389 in IEFA.
| Period | VEA | IEFA |
|---|---|---|
| 1 month | -2.24% | -1.31% |
| 3 months | 0.11% | 0.48% |
| Year to date | 11.70% | 8.10% |
| 1 year | 13.95% | 8.87% |
| 3 years | 76.30% | 66.45% |
| 5 years | 51.83% | 43.89% |
- VEA
- IEFA
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.
- VEA
- IEFA
VEA vs IEFA holdings overlap
At least 33% overlap by weight, with 79 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 | VEA weight | IEFA weight |
|---|---|---|
| ASML.ASASML Holding NV | 2.12% | 2.56% |
| HSBA.LHSBC Holdings PLC | 1.04% | 1.29% |
| ROP.SWRoche Holding AG | 0.90% | 1.28% |
| SHEL.LShell PLC | 0.85% | 1.21% |
| NOVN.SWNovartis AG | 0.82% | 1.10% |
| 8306.TMitsubishi UFJ Financial Group Inc | 0.78% | 0.93% |
| AZN.LAstraZeneca PLC | 0.74% | 1.00% |
| NESN.SWNestle SA | 0.72% | 1.02% |
| SIE.DESiemens AG | 0.69% | 0.88% |
| BHP.AXBHP Group Ltd | 0.66% | 0.84% |
Top 10 holdings
Largest positions by portfolio weight.
VEA3873 holdings total
| Name | Weight |
|---|---|
| 005930.KSSamsung Electronics Co Ltd | 2.79% |
| 000660.KSSK hynix Inc | 2.28% |
| ASML.ASASML Holding NV | 2.12% |
| HSBA.LHSBC Holdings PLC | 1.04% |
| ROP.SWRoche Holding AG | 0.90% |
| SHEL.LShell PLC | 0.85% |
| RY.TORoyal Bank of Canada | 0.85% |
| NOVN.SWNovartis AG | 0.82% |
| 8306.TMitsubishi UFJ Financial Group Inc | 0.78% |
| AZN.LAstraZeneca PLC | 0.74% |
Quick verdict
VEA fits better if you care most about lower fees and stronger 5-year returns. IEFA fits better if you care most about more income today and faster dividend growth. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
Forecast dividend income, track payouts, and see how VEA vs IEFA fits with the rest of your holdings. Free to start — no credit card required for the trial.
Frequently asked questions
Is VEA or IEFA better for dividend income?
It depends on your goals. VEA currently yields 2.44% Trailing Twelve Months (TTM) while IEFA yields 3.40%. 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 VEA and IEFA?
Vanguard FTSE Developed Markets ETF (VEA) is an ETF listed on AMEX. iShares Core MSCI EAFE ETF (IEFA) is an ETF listed on CBOE. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, VEA or IEFA?
VEA has the lower expense ratio. VEA charges 0.03% a year and IEFA charges 0.07%, a difference of $4 a year on a $10,000 investment.
Which has performed better, VEA or IEFA?
Over the last 5 years, VEA has the higher total return with dividends reinvested: VEA returned 51.8% and IEFA returned 43.9%. Past performance does not predict future returns.
Which is riskier, VEA or IEFA?
Measured by the worst peak-to-trough decline over the last five years, IEFA has been riskier: VEA fell as much as 29.3% and IEFA as much as 30.0%. Their betas are 0.97 and 0.89.
How much do VEA and IEFA overlap?
At least 33% of the two portfolios overlap by weight, across 79 shared holdings. The largest shared positions are ASML.AS, HSBA.L, ROP.SW. Holding both still adds meaningful diversification.
How often do VEA and IEFA pay dividends?
VEA pays quarterly and IEFA pays semi-annual.
How much income does $10,000 in VEA vs IEFA generate?
At current TTM yields, $10,000 in VEA would generate roughly $20.35 per month ($244 annually). The same amount in IEFA would produce about $28.34 per month ($340 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both VEA and IEFA?
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 VEA vs IEFA with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how VEA and IEFA 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.