IEFA vs VEA: fees, holdings and returns
IEFA and VEA both hold thousands of companies in rich countries outside the US, from large to small. IEFA follows an MSCI index and VEA a FTSE one. The biggest difference is that VEA includes Canada and South Korea and IEFA does not. Over the same dates since October 2012, IEFA returned about 8.3% a year and VEA returned about 8.7% a year.
Written by the Tactfolio research team. Fund facts checked October 17, 2026. Prices through October 20, 2026.
Key points
- VEA costs less: 0.03% a year against 0.07%.
- IEFA started trading in October 2012. VEA started in July 2007.
- Worst drops since 2012: IEFA −34.8%, VEA −35.7%.
- Daily correlation: 0.99 (1 means they always move together).
What is the difference between IEFA and VEA?#
MSCI and FTSE sort countries a little differently. IEFA’s index covers Europe, Australasia and the Far East, so it leaves out Canada, and MSCI counts South Korea as an emerging market. VEA’s FTSE index counts South Korea as developed and adds Canada. Those two countries make up a noticeable slice of VEA, so the funds can pull apart when Canada or South Korea moves differently from Europe and Japan. VEA charges a lower fee.
| Fact | IEFA | VEA |
|---|---|---|
| Full name | iShares Core MSCI EAFE ETF | Vanguard FTSE Developed Markets ETF |
| Issuer | iShares (BlackRock) | Vanguard |
| Expense ratio | 0.07% a year | 0.03% a year |
| Started trading | October 18, 2012 | July 20, 2007 |
| Tracks | MSCI EAFE IMI Index (Net) | FTSE Developed All Cap ex US Index |
| Holdings | 2,626 holdings as of October 15, 2026 | 3,903 holdings as of September 30, 2026 |
| Type | International stocks, ETF | International stocks, ETF |
Fund facts checked on the iShares (BlackRock) IEFA page and the Vanguard VEA page.
Is IEFA or VEA cheaper?#
VEA costs less: 0.03% a year against 0.07%. On $10,000, that is about $7 a year for IEFA and $3 for VEA. The fund takes its fee out of its own value a little each day, so you never get a bill.
IEFA vs VEA performance over the same dates#
Both funds are measured from October 2012 to October 2026, the dates both traded. IEFA returned about 8.3% a year and VEA returned about 8.7% a year. VEA came out ahead over this period, which does not mean it will again.
| Measure | IEFA | VEA |
|---|---|---|
| $10,000 grew to | $30,379 | $31,963 |
| Total return | 203.8% | 219.6% |
| Return per year (CAGR) | 8.3% | 8.7% |
| Worst drop from a high | −34.8% | −35.7% |
| Volatility (how much it swings) | 16.6% | 16.7% |
| Last 12 months | 12.8% | 17.0% |
| Last 3 years, per year | 19.9% | 21.9% |
| Last 5 years, per year | 8.3% | 9.3% |
| Last 10 years, per year | 9.2% | 9.8% |
Prices through October 20, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.
IEFA and VEA returns by year#
| Year | IEFA | VEA |
|---|---|---|
| 2026 (part of the year) | 9.9% | 12.8% |
| 2025 | 32.1% | 35.2% |
| 2024 | 3.3% | 3.1% |
| 2023 | 17.9% | 17.9% |
| 2022 | −15.2% | −15.3% |
| 2021 | 11.6% | 11.7% |
| 2020 | 8.2% | 9.7% |
| 2019 | 22.6% | 22.6% |
| 2018 | −14.1% | −14.8% |
| 2017 | 26.6% | 26.4% |
| 2016 | 1.6% | 2.6% |
| 2015 | 0.7% | −0.4% |
| 2014 | −6.3% | −6.0% |
| 2013 | 22.5% | 21.8% |
| 2012 (part of the year) | 7.3% | 7.4% |
Which fell further in bad times?#
A drawdown is how far a fund falls from its last high point. IEFA’s worst fall was −34.8%, from January 26, 2018 to March 23, 2020. It got back to that high on November 16, 2020.
VEA’s worst fall was −35.7%, from January 26, 2018 to March 23, 2020. It got back to that high on November 16, 2020.
Their daily moves had a correlation of 0.99. A correlation of 1 means two funds always move up and down together. Near 0 means they move on their own. So holding both adds little variety.
Why people choose IEFA or VEA#
IEFA. People who hold Canada or South Korea elsewhere, or use iShares, often pick IEFA.
VEA. People who want Canada and South Korea included, or use Vanguard, often pick VEA.
Strategies that hold IEFA or VEA#
These classic strategies hold one or both at least some of the time. Each is a set of written rules you can open, test and copy.
- Hybrid Asset Allocation (HAA), by Wouter Keller and JW Keuning, 2023 (holds VEA)
- Bold Asset Allocation (BAA), by Wouter Keller, 2022 (holds VEA)
- Bold Asset Allocation G4 (BAA aggressive), by Wouter Keller, 2022 (holds VEA)
Other funds like IEFA and VEA#
Each fund has more funds that hold the same kind of investments, ranked by how closely they move with it: IEFA alternatives and VEA alternatives.
Test a mix of IEFA and VEA#
Open the builder, add IEFA and VEA, and give each a weight, such as 50% and 50%. The backtest shows how the mix would have done, with its worst drop, on daily prices. You can also add a rule, for example to switch between them, and compare. Read the full pages for IEFA and VEA, or see more ETF comparisons.
The details#
Both funds use Tactfolio’s stored daily prices, adjusted for splits, with dividends reinvested. They are compared only on days both traded, starting the later fund’s first day, so neither gets a head start. Correlation uses daily returns over the same days. Read what a backtest simulates for more on these measures.
Common questions#
Does IEFA include Canada?#
No. IEFA follows an MSCI EAFE index: Europe, Australasia and the Far East. Canada is not part of it. VEA includes Canada.
Why is South Korea in VEA but not IEFA?#
FTSE, whose index VEA follows, counts South Korea as a developed market. MSCI, whose index IEFA follows, counts it as emerging.
Which is cheaper, IEFA or VEA?#
VEA costs less: 0.03% a year against 0.07%. Fees come from each issuer and were checked on October 17, 2026.
Which did better, IEFA or VEA?#
From October 2012 to October 2026, IEFA returned about 8.3% a year and VEA returned about 8.7% a year, with dividends reinvested. Their worst drops were −34.8% and −35.7%. Past returns do not tell you what comes next.