How does Avantis International Equity ETF differ from iShares Core MSCI EAFE ETF?

Both funds focus on foreign large-cap equities, but their strategies differ. Avantis International Equity ETF (stock_1) employs an active strategy aiming to outperform international markets, which explains its higher expense ratio of 0.23%. In contrast, iShares Core MSCI EAFE ETF (stock_2) passively tracks an index with a low 0.07% expense ratio. The key difference lies in stock selection versus market replication, impacting potential returns and cost structures for investors.

What does the difference in inception dates imply for these two ETFs?

The inception dates highlight different levels of historical performance data. Avantis International Equity ETF (stock_1) launched in September 2019, offering a shorter track record of approximately seven years. iShares Core MSCI EAFE ETF (stock_2) started in October 2012, providing over thirteen years of historical data. Longer histories allow investors to evaluate performance consistency across various economic cycles, whereas newer funds like stock_1 provide less long-term evidence of strategy effectiveness.

How do the fund sizes of AVDE and IEFA impact liquidity?

Fund size significantly influences trading efficiency. iShares Core MSCI EAFE ETF (stock_2) holds $192.2 billion in net assets, ensuring exceptional liquidity and typically tighter bid-ask spreads for traders. Avantis International Equity ETF (stock_1) has $19.1 billion in assets. While still substantial enough to operate efficiently, it is smaller than stock_2. Larger asset bases generally correlate with higher trading volume and lower transaction costs for individual investors.

How do the expense ratios of AVDE and IEFA compare over time?

Expense ratios are a direct cost drag on returns. Avantis International Equity ETF (stock_1) charges 0.23%, while iShares Core MSCI EAFE ETF (stock_2) charges only 0.07%. This creates a 0.16 percentage point annual cost difference. Over long periods, this disparity compounds, potentially reducing net returns for stock_1 investors unless the active strategy successfully generates sufficient alpha to outweigh the higher fee structure.

How do the dividend yields of these two foreign large blend ETFs compare?

Dividend yield indicates the income generated relative to the fund's share price. iShares Core MSCI EAFE ETF (stock_2) has a yield of 3.32%, which is higher than Avantis International Equity ETF (stock_1)'s 2.74%. While stock_2 offers more income, higher yields can sometimes signal lower growth expectations or higher sector concentration in value stocks. Investors should consider how this income component fits into their total return objectives.

Which investing goals are typically associated with AVDE versus IEFA?

Avantis International Equity ETF (stock_1) is often associated with investors seeking active factor-based exposure to international equities, aiming for outperformance relative to benchmarks despite higher costs. iShares Core MSCI EAFE ETF (stock_2) is typically aligned with goals of broad, low-cost market replication of developed international markets. Stock_1 suits those believing in the value of active stock selection, while stock_2 appeals to those prioritising cost efficiency and market-matching returns.

What level of overlap exists between the top holdings of AVDE and IEFA?

When examining the top ten holdings listed in the provided data, there is no overlap between Avantis International Equity ETF (stock_1) and iShares Core MSCI EAFE ETF (stock_2). Stock_1 lists holdings such as ASML and SHEL, whereas stock_2's specific top holdings are not available. This lack of visible shared top-10 holdings suggests distinct portfolio constructions, though full overlap analysis would require complete holding disclosure for stock_2.

How does the tracking method of IEFA differ from AVDE's approach?

iShares Core MSCI EAFE ETF (stock_2) is a passive fund designed to replicate the performance of an underlying index, matching market returns minus fees. Avantis International Equity ETF (stock_1) actively selects securities based on quantitative models targeting specific factors. Consequently, stock_2's performance is tied closely to benchmark movements, whereas stock_1's performance can diverge significantly from the index, offering potential outperformance or underperformance depending on the effectiveness of its active management.

What sector exposure information is available for these international ETFs?

Sector weights are critical for understanding diversification, but detailed data is limited for both funds in this comparison. Sector weights are not available for either Avantis International Equity ETF (stock_1) or iShares Core MSCI EAFE ETF (stock_2). This lack of disclosure prevents precise analysis of industry concentration risks or sector tilts, requiring investors to rely on broader fund descriptions or alternative sources to gauge sector allocation within these foreign large blend portfolios.

How should investors interpret the available top holdings for AVDE?

Avantis International Equity ETF (stock_1) discloses specific top holdings, such as ASML at 1.27% and SHEL at 0.89%. These figures allow for granular assessment of individual company concentration. In contrast, iShares Core MSCI EAFE ETF (stock_2) does not provide specific top holdings in this dataset. The disclosed names for stock_1 indicate a mix of technology and energy sectors, providing insight into the active manager's current position sizing.

What are the tax implications of the differing dividend yields?

The dividend yields differ, with iShares Core MSCI EAFE ETF (stock_2) offering 3.32% compared to Avantis International Equity ETF (stock_1)'s 2.74%. Higher distributions from stock_2 can result in greater immediate tax liabilities for investors holding these funds in taxable accounts, as dividends are typically taxed upon distribution. Stock_1's lower yield may defer some tax burden, though overall tax efficiency depends on capital gains management and individual jurisdictional tax rules.

What disclaimer should readers keep in mind regarding this comparison?

This educational comparison provides factual data and definitions to help readers understand ETF characteristics. It does not constitute financial advice, recommendations, or endorsements to buy or sell any security. Figures such as expense ratios and holdings are based on provided data and may change over time. Investors should conduct their own due diligence, consult with qualified financial professionals, and consider their personal financial situation before making investment decisions.

AVDE vs IEFA

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare AVDE and IEFA, two foreign large blend ETFs. This page examines differences in expense ratios, dividend yields, fund assets, and top holdings. AVDE charges 0.23% with a 2.74% yield, while IEFA costs 0.07% yielding 3.32%. Review how each fund tracks international markets. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

AVDE

Metric

IEFA

0.23%

Expense Ratio

0.07%

2.74%

Dividend Yield

3.32%

$19.06B

Net Assets

$192.23B

3,336

Holdings

2,657

Sep 24, 2019

Inception Date

Oct 18, 2012

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Index Tracked

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Foreign Large Blend

Fund Category

Foreign Large Blend

IEFA costs about $16.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

AVDE

Pros

Avantis employs an active strategy aiming to outperform, distinct from passive tracking of international markets.
The fund maintains moderate dividend yield at 2.74 percent, offering reasonable income to investors alongside growth potential.
With 19.1 billion dollars in assets, it possesses sufficient scale to operate efficiently and maintain competitive pricing.

Considerations

Higher expense ratio at 0.23 percent compared to passive alternatives increases cost drag on returns over time.
Lack of disclosed sector weights obscures precise diversification analysis and potential industry concentration risks for investors.
Newer inception date in September 2019 means limited long-term performance history exists to assess consistency.

IEFA

Pros

Very low expense ratio of 0.07 percent minimises cost drag, preserving more capital for compounding growth.
Huge asset base of 192.2 billion dollars ensures exceptional liquidity and tight bid-ask spreads for trading.
Established track record since October 2012 provides ample historical data for evaluating long-term reliability and performance.

Considerations

Passive indexing limits potential for outperformance against international benchmarks, matching market returns only after fees.
Higher dividend yield of 3.32 percent may increase tax liability for investors in taxable accounts.
Specific top holdings are not available, preventing detailed assessment of individual company concentration within the fund.

About AVDE and IEFA

AVDE (AVDE)

The Avantis International Equity ETF (AVDE) is an exchange-traded fund that aims to provide investors with access to quality companies located outside the United States. With an inception date of September 24, 2019, this fund has grown significantly, managing net assets of USD 19.06 billion. It boasts a broad portfolio of 3,336 holdings, diversified across various regions. Operating with a competitive expense ratio of 0.23%, AVDE is categorised as a Foreign Large Blend fund. Currently, it offers a dividend yield of 2.74%, appealing to investors seeking international diversification and potential income. The fund's strategy focuses on identifying companies with strong fundamentals, offering exposure to global markets beyond the US.

IEFA (IEFA)

The iShares Core MSCI EAFE ETF (IEFA) offers investors a convenient way to access developed markets outside the United States and Canada. By holding a broad basket of over 2,600 stocks, this exchange-traded fund aims to track the performance of large and mid-cap companies across Europe, Australasia, and the Far East. It serves as a foundational tool for diversifying portfolios beyond domestic UK or US investments, potentially reducing concentration risk. With a low expense ratio of 0.07%, it remains cost-efficient for long-term holding. The fund also generates income through dividends, offering a yield of approximately 3.32%. Investors should note that while it provides exposure to major global economies, values and returns are not guaranteed. Currency fluctuations and differing economic conditions in these regions can impact performance. As with any investment, it is important to consider your own financial circumstances and risk tolerance before investing.

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AVDE vs IEFA

Fund Snapshot