ETF Versus

IEFA vs VYM

iShares Core MSCI EAFE ETF vs Vanguard High Dividend Yield 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
VYM Vanguard

Vanguard High Dividend Yield Index Fund ETF Shares (VYM) is an exchange-traded fund issued by Vanguard that provides exposure to U.S. dividend-paying stocks selected for yield or dividend growth. It charges a very low expense ratio of 0.04%. The fund offers a moderate dividend yield of 2.37%. Launched in 2006, the fund has a 20-year track record.

AUM: $71.3B ER: 0.04% Yield: 2.37% Since: Nov 10, 2006

Quick Verdict

VYM has a slightly lower expense ratio (0.04% vs 0.07%), saving about $60 per $10,000 over 10 years. Over the past year, IEFA has significantly outperformed with a 21.2% return vs 15.0%. Income investors may prefer IEFA for its higher yield (3.5% vs 2.4%).

Key Metrics

Metric IEFA VYM
Expense Ratio 0.07% 0.04%
Dividend Yield 3.5% 2.4%
Fund Family iShares Vanguard
Category International Developed US Dividend

Performance Chart

Indexed to 100 at start (5-year comparison)

70 87 104 121 138 155 2021-04 2022-06 2023-09 2024-12 2026-04
IEFA +24.0%
VYM +44.6%

Performance Comparison

Period IEFA VYM Difference
1 Month -4.68% -4.59% -0.09%
3 Months +1.73% +2.20% -0.47%
6 Months +3.46% +4.52% -1.06%
YTD +1.73% +2.20% -0.47%
1 Year +21.19% +14.98% +6.21%
3 Years +36.36% +39.18% -2.82%
5 Years +23.97% +44.55% -20.58%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IEFA Fees VYM Fees You Save
$10.000 10 years $140 $80 $60
$10.000 20 years $600 $344 $256
$10.000 30 years $1.938 $1.112 $826
$50.000 10 years $698 $399 $298
$50.000 30 years $9.692 $5.560 $4.131
$100.000 30 years $19.383 $11.121 $8.263

Risk Metrics

Based on 5 years of daily returns

Metric IEFA VYM
Annualized Volatility 16.6% 14.0%
Max Drawdown -33.1% -17.5%
Sharpe Ratio 0.07 0.28

Dividend Comparison

Metric IEFA VYM
Annual Dividend (per share) $3.18 $3.51
Dividend Yield 3.46% 2.37%
Distribution Frequency Semi-Annual or Annual Quarterly

Top Holdings

0 of top 10 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%

VYM Top Holdings

NameWeight
Broadcom Inc.AVGO6.48%
JPMorgan Chase & Co.JPM3.36%
Exxon Mobil CorporationXOM2.83%
Johnson & JohnsonJNJ2.63%
Walmart Inc.WMT2.44%
AbbVie Inc.ABBV1.81%
The Procter & Gamble CompanyPG1.72%
The Home Depot, Inc.HD1.66%
Chevron CorporationCVX1.54%
Caterpillar Inc.CAT1.51%

Which One Should You Choose?

Choose VYM 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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