ETF Versus

EFA vs VGT

iShares MSCI EAFE ETF vs Vanguard Information Technology Index Fund ETF Shares

Last updated: 2026-04-02

EFA iShares

iShares MSCI EAFE ETF (EFA) is an exchange-traded fund issued by iShares that provides exposure to equities in developed international markets outside the U.S.. It charges an above-average expense ratio of 0.32%. The fund offers an attractive dividend yield of 3.29%. Launched in 2001, the fund has a 25-year track record.

AUM: $69.1B ER: 0.32% Yield: 3.29% Since: Aug 14, 2001
VGT

Vanguard Information Technology Index Fund ETF Shares (VGT) is an exchange-traded fund that provides exposure to us sector - technology securities. It charges a low expense ratio of 0.09%. The fund offers a modest dividend yield of 0.43%. Launched in 2004, the fund has a 22-year track record.

AUM: $102.6B ER: 0.09% Yield: 0.43% Since: Jan 26, 2004

Quick Verdict

VGT is significantly cheaper at 0.09% vs 0.32% expense ratio, saving you approximately $452 per $10,000 invested over 10 years. Over the past year, VGT has significantly outperformed with a 29.2% return vs 20.5%. Income investors may prefer EFA for its higher yield (3.3% vs 0.4%).

Key Metrics

Metric EFA VGT
Expense Ratio 0.32% 0.09%
Dividend Yield 3.3% 0.4%
Fund Family iShares N/A
Category International Developed US Sector - Technology

Performance Chart

Indexed to 100 at start (5-year comparison)

70 99 128 157 186 215 2021-04 2022-06 2023-09 2024-12 2026-04
EFA +26.5%
VGT +89.7%

Performance Comparison

Period EFA VGT Difference
1 Month -4.54% -3.71% -0.83%
3 Months +1.62% -6.53% +8.15%
6 Months +3.71% -6.49% +10.20%
YTD +1.62% -6.53% +8.15%
1 Year +20.48% +29.20% -8.72%
3 Years +36.79% +83.56% -46.77%
5 Years +26.46% +89.73% -63.27%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period EFA Fees VGT Fees You Save
$10.000 10 years $631 $179 $452
$10.000 20 years $2.686 $771 $1.915
$10.000 30 years $8.571 $2.486 $6.085
$50.000 10 years $3.156 $896 $2.260
$50.000 30 years $42.854 $12.428 $30.426
$100.000 30 years $85.707 $24.855 $60.852

Risk Metrics

Based on 5 years of daily returns

Metric EFA VGT
Annualized Volatility 16.6% 25.1%
Max Drawdown -32.4% -35.5%
Sharpe Ratio 0.10 0.46

Dividend Comparison

Metric EFA VGT
Annual Dividend (per share) $3.25 $3.06
Dividend Yield 3.29% 0.43%
Distribution Frequency Semi-Annual or Annual Quarterly

Top Holdings

0 of top 10 holdings overlap (0% overlap in top holdings)

EFA Top Holdings

NameWeight
ASML Holding N.V.!ams/ASML2.54%
AstraZeneca PLC!lon/AZN1.46%
Novartis AG!swx/NOVN1.41%
Roche Holding AG!swx/ROP1.36%
HSBC Holdings plc!lon/HSBA1.36%
Shell plc!lon/SHEL1.31%
Nestlé S.A.!swx/NESN1.22%
Toyota Motor Corporation!tyo/72031.00%
Commonwealth Bank of Australia!asx/CBA0.99%
Mitsubishi UFJ Financial Group, Inc.!tyo/83060.95%

VGT Top Holdings

NameWeight
NVIDIA CorporationNVDA18.07%
Apple Inc.AAPL15.84%
Microsoft CorporationMSFT10.39%
Broadcom Inc.AVGO4.34%
Micron Technology, Inc.MU2.37%
Advanced Micro Devices, Inc.AMD1.65%
Cisco Systems, Inc.CSCO1.63%
Palantir Technologies Inc.PLTR1.57%
Applied Materials, Inc.AMAT1.54%
Lam Research CorporationLRCX1.53%

Which One Should You Choose?

Choose VGT if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose VGT if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose EFA if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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