VEA vs IEFA: Differences, Fees and Returns
VEA is cheaper: it charges 0.03% a year against 0.07% for IEFA. That is €4 less a year per 10,000 invested; over a plan of 10,000 up front plus 200 a month for 30 years, the accumulated cost gap comes to about €2,858.
They do not track the same thing: VEA follows the FTSE Developed All Cap ex US Index and IEFA the MSCI EAFE IMI Index. Any difference in returns will come mainly from that exposure, not from the fee.
Over the last 10 years, VEA returned 10.25% a year against 9.60% for IEFA. That is past performance and may not repeat.
Head-to-head comparison
| VEA | IEFA | |
|---|---|---|
| Name | Vanguard FTSE Developed Markets ETF | iShares Core MSCI EAFE IMI Index ETF |
| Provider | Vanguard | BlackRock |
| Index | FTSE Developed All Cap ex US Index | MSCI EAFE IMI Index |
| TER | 0.03% | 0.07% |
| Type | ETF | ETF |
| Domicile | United States | United States |
| Dividends | Distributing | Distributing |
| Launch date | July 20, 2007 | October 18, 2012 |
| Fund size | $324B | $194B |
| ISIN | — | — |
| Available to EU retail investors | No | No |
| Tax-free switch (Spain) | No | No |
Historical returns: VEA vs IEFA (Aug 2016 – Aug 2026)
10,000 invested in Aug 2016 would be worth $26,522 in VEA and $25,003 in IEFA today.
| VEA | IEFA | |
|---|---|---|
| Annualised return | 10.25% | 9.60% |
| Total return | 165.22% | 150.03% |
| Annual volatility | 15.50% | 15.04% |
| Maximum drawdown | -28.08% | -28.58% |
| Monthly correlation | 0.99 | |
Calendar-year returns
| Year | VEA | IEFA |
|---|---|---|
| 2026* | 17.54% | 13.90% |
| 2025 | 35.17% | 32.08% |
| 2024 | 3.16% | 3.29% |
| 2023 | 17.94% | 17.99% |
| 2022 | -15.36% | -15.21% |
| 2021 | 11.67% | 11.65% |
| 2020 | 9.74% | 8.17% |
| 2019 | 22.62% | 22.63% |
| 2018 | -14.75% | -14.13% |
| 2017 | 26.42% | 26.59% |
* Current year, to Aug 2026.
Month-end closing prices adjusted for dividends and net of fund costs. Broker fees and taxes are not included. Past performance does not guarantee future results.