IEFA vs VYM
iShares Core MSCI EAFE ETF vs Vanguard High Dividend Yield ETF
Which is better, IEFA or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. IEFA is less concentrated, with 12.0% of the fund in its ten largest positions against 25.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IEFA | VYM |
|---|---|---|
| Expense Ratio | 0.07% | 0.04%Best |
| AUM | $189.9B | $78.9B |
| Dividend Yield | 3.40% | 2.37% |
| Holdings | 5,326 | 608 |
| YTD Return | +6.11% | +11.83%Best |
| 1Y Return | +12.04% | +15.96%Best |
| 3Y Return (annualized) | +17.57% | +18.60%Best |
| 5Y Return (annualized) | +8.05% | +11.51%Best |
| Volatility (annualized) | 14.3% | 13.2%Best |
| Max Drawdown | -34.8%Best | -35.7% |
| $10,000 over 5 years | $14,727 | $17,241Best |
| Top 10 Weight | 12.0%Best | 25.8% |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Oct 18, 2012 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Oct 22, 2012 to Oct 14, 2026 (14 years).
IEFA vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14 years both funds cover.
IEFA vs VYM Performance
iShares Core MSCI EAFE ETF (IEFA) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year IEFA returned +12.04% while VYM returned +15.96%. Year to date, IEFA is up 6.11% versus a gain of 11.83% for VYM.
Over three years, IEFA compounded at +17.57% per year against +18.60% for VYM; over five years the annualized figures are +8.05% and +11.51% respectively. Across the full 14-year window we track, VYM has the edge at +9.85% annualized vs +7.94%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IEFA has been the more volatile fund, with annualized monthly volatility of 14.3% compared with 13.2% for VYM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -34.8% for IEFA and -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IEFA charges 0.07% per year while VYM charges 0.04%. On a $10,000 position that is $7 vs $4 annually, a gap of $3 per year that compounds over a long holding period. On income, IEFA currently yields 3.40% against 2.37% for VYM.
Holdings Overlap
0.4% of IEFA's money is in holdings VYM also owns. 0.4% of VYM's money is in holdings IEFA also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
7 positions in common, counted across the 2,580 positions we hold weights for in IEFA and 602 in VYM, against full books of 5,326 and 608.
What only one of them owns
Our book lists 568 positions for VYM that do not appear in our book for IEFA (97.5% of the fund), and 23 for IEFA that do not appear in VYM (3.4%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in IEFA | Weight in VYM | Difference |
|---|---|---|---|
| DGDollar General Corp. | 0.23% | 0.11% | 0.12% |
| EQTEQT Corp. | 0.05% | 0.13% | 0.08% |
| RFEurazeo | 0.01% | 0.10% | 0.09% |
| TIGO:LUMillicom International Cellular Sa Common Stock | 0.03% | 0.03% | 0.00% |
| AMAntero Midstream Corporationam | 0.02% | 0.03% | 0.01% |
| SIG:LNSignet Jewelers Limited Common Shares | 0.04% | 0.01% | 0.03% |
| THGHanover Insurance Group Inc | 0.00% | 0.03% | 0.03% |
You are not choosing between two funds in isolation.
Whichever of IEFA and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IEFA or VYM?
IEFA has an expense ratio of 0.07% while VYM charges 0.04%. VYM is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, IEFA or VYM?
Over the past year IEFA returned +12.04% vs +15.96% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (14 years), IEFA annualized +7.94% vs +9.85% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IEFA or VYM?
IEFA has been the more volatile fund at 14.3% annualized versus 13.2% for VYM. Worst drawdown: IEFA -34.8% vs VYM -35.7%.
Should I hold both IEFA and VYM?
IEFA and VYM have a monthly-return correlation of 0.82, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IEFA or VYM?
IEFA yields 3.40% while VYM yields 2.37%, so IEFA currently pays the higher dividend yield.
Is VYM better than IEFA?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. IEFA is less concentrated, with 12.0% of the fund in its ten largest positions against 25.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.