ETF Versus

IEFA vs VUG

iShares Core MSCI EAFE ETF vs Vanguard Growth Index Fund ETF Shares

Last updated: 2026-04-02

IEFA iShares

iShares Core MSCI EAFE ETF (IEFA) is an exchange-traded fund issued by iShares that provides exposure to equities in developed international markets outside the U.S.. It charges a low expense ratio of 0.07%. The fund offers an attractive dividend yield of 3.46%. Launched in 2012, the fund has a 14-year track record.

AUM: $164.3B ER: 0.07% Yield: 3.46% Since: Oct 18, 2012
VUG Vanguard

Vanguard Growth Index Fund ETF Shares (VUG) is an exchange-traded fund issued by Vanguard that provides exposure to large-cap U.S. growth stocks with above-average earnings potential. It charges a very low expense ratio of 0.03%. The fund offers a modest dividend yield of 0.45%. Launched in 2004, the fund has a 22-year track record.

AUM: $179.8B ER: 0.03% Yield: 0.45% Since: Jan 26, 2004

Quick Verdict

VUG has a slightly lower expense ratio (0.03% vs 0.07%), saving about $80 per $10,000 over 10 years. IEFA has edged ahead over the past year (21.2% vs 18.0%). Income investors may prefer IEFA for its higher yield (3.5% vs 0.5%).

Key Metrics

Metric IEFA VUG
Expense Ratio 0.07% 0.03%
Dividend Yield 3.5% 0.5%
Fund Family iShares Vanguard
Category International Developed US Large Cap Growth

Performance Chart

Indexed to 100 at start (5-year comparison)

70 94 118 142 166 190 2021-04 2022-06 2023-09 2024-12 2026-04
IEFA +24.0%
VUG +66.0%

Performance Comparison

Period IEFA VUG Difference
1 Month -4.68% -4.47% -0.21%
3 Months +1.73% -9.18% +10.91%
6 Months +3.46% -8.28% +11.74%
YTD +1.73% -9.18% +10.91%
1 Year +21.19% +18.01% +3.18%
3 Years +36.36% +77.18% -40.82%
5 Years +23.97% +66.01% -42.04%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IEFA Fees VUG Fees You Save
$10.000 10 years $140 $60 $80
$10.000 20 years $600 $258 $342
$10.000 30 years $1.938 $835 $1.103
$50.000 10 years $698 $299 $398
$50.000 30 years $9.692 $4.176 $5.516
$100.000 30 years $19.383 $8.352 $11.032

Risk Metrics

Based on 5 years of daily returns

Metric IEFA VUG
Annualized Volatility 16.6% 22.2%
Max Drawdown -33.1% -36.0%
Sharpe Ratio 0.07 0.37

Dividend Comparison

Metric IEFA VUG
Annual Dividend (per share) $3.18 $1.99
Dividend Yield 3.46% 0.45%
Distribution Frequency Semi-Annual or Annual Quarterly

Top Holdings

0 of top 9 holdings overlap (0% overlap in top holdings)

IEFA Top Holdings

NameWeight
ASML Holding N.V.!ams/ASML2.18%
AstraZeneca PLC!lon/AZN1.25%
Novartis AG!swx/NOVN1.21%
Roche Holding AG!swx/ROP1.17%
HSBC Holdings plc!lon/HSBA1.16%
Shell plc!lon/SHEL1.12%
Nestlé S.A.!swx/NESN1.05%
Toyota Motor Corporation!tyo/72030.85%
Commonwealth Bank of Australia!asx/CBA0.85%
Mitsubishi UFJ Financial Group, Inc.!tyo/83060.81%

VUG Top Holdings

NameWeight
NVIDIA CorporationNVDA12.82%
Apple Inc.AAPL12.23%
Microsoft CorporationMSFT9.15%
Alphabet Inc.GOOG4.49%
Meta Platforms, Inc.META4.44%
Amazon.com, Inc.AMZN4.41%
Broadcom Inc.AVGO3.95%
Tesla, Inc.TSLA3.58%
Eli Lilly and CompanyLLY2.82%

Which One Should You Choose?

Choose VUG if...

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

Choose IEFA if...

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

Choose IEFA if...

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

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