What are the main expense ratio differences between iShares MSCI EAFE ETF (EFA) and Vanguard Total International Stock ETF (VXUS)?

iShares MSCI EAFE ETF (EFA) charges an expense ratio of 0.32%, whereas Vanguard Total International Stock ETF (VXUS) has a lower expense ratio of 0.05%. This 0.27 percentage point difference can impact long-term returns for investors considering international exposure. Choosing between these funds depends on investor priorities regarding fees and portfolio structure.

What are the categories of the two international ETFs?

Both iShares MSCI EAFE ETF (EFA) and Vanguard Total International Stock ETF (VXUS) are categorised as 'Foreign Large Blend' ETFs. This category denotes that both funds primarily target large-cap stocks from developed international markets.

What are the inception dates for the iShares MSCI EAFE ETF (EFA) and Vanguard Total International Stock ETF (VXUS)?

The inception date of iShares MSCI EAFE ETF (EFA) is August 14, 2001, while Vanguard Total International Stock ETF (VXUS) was launched on January 26, 2011. EFA, with an earlier launch, offers a longer track record of over 20 years. In contrast, VXUS, established in 2011, has over a decade of historical performance.

What are the main differences in the indices that EFA and VXUS track?

EFA focuses on developed markets, excluding emerging economies, thereby avoiding the higher volatility often associated with emerging market exposure. VXUS, on the other hand, provides a comprehensive international exposure, including emerging markets, offering broader access but with increased volatility.

Why might dividend yield matter for international ETFs like EFA and VXUS?

Dividend yield matters for international ETFs like EFA and VXUS as it indicates the cash flow an investor can expect from their investments. EFA, with a dividend yield of 3.16%, offers a higher yield, which may attract yield-focused investors. In contrast, VXUS's yield of 2.28% is lower, making it suitable for those prioritising growth and stability over immediate income.

How do the holdings of iShares MSCI EAFE ETF (EFA) compare to Vanguard Total International Stock ETF (VXUS)?

EFA's holdings focus on developed markets, excluding emerging economies, which provides exposure to regions like Europe and Asia-Pacific. In contrast, VXUS includes emerging markets, broadening its reach to regions such as Latin America and Southeast Asia. The top holdings for each fund are not detailed, but they reflect these differing strategies.

What are the main advantages and disadvantages of EFA's dividend yield compared to VXUS?

EFA's 3.16% dividend yield may attract yield-focused investors, but it could also limit its appeal to long-term growth seekers. VXUS's 2.28% yield, while lower, aligns with its emphasis on broad international diversification, including emerging markets.

What practical implications arise from the net assets differences between EFA and VXUS?

VXUS's $164.0 billion in net assets suggests a larger scale and potentially greater liquidity and stability, compared to EFA's $77.7 billion. This difference can impact trading volumes and bid-ask spreads, making VXUS more liquid.

How do the trading volumes and liquidity differ between EFA and VXUS?

The trading volumes and liquidity of EFA and VXUS differ significantly, as evidenced by their net assets and expense ratios. VXUS, with $164.0 billion in net assets and a 0.05% expense ratio, is likely to have higher trading volumes and better liquidity, resulting in tighter bid-ask spreads. In contrast, EFA, with $77.7 billion in net assets and a 0.32% expense ratio, may exhibit lower trading volumes and wider spreads. For beginners, understanding these metrics can help assess the ease of buying and selling shares at fair prices, a critical aspect of ETF investments. However, actual trading volumes and liquidity data are not provided in the available information.

What are the key takeaways for beginners comparing EFA and VXUS?

Beginners comparing EFA and VXUS should focus on three key aspects: fees, track record, and market exposure. EFA, with its 0.32% expense ratio and 2001 inception date, offers developed market exposure without emerging market volatility, and a higher 3.16% dividend yield. VXUS, however, has a lower 0.05% expense ratio, broader market exposure including emerging markets, and a $164.0 billion net asset base, providing stability but with higher volatility due to its broader range. Neither fund has top-10 holdings listed, and sector weights are not available.

How do expense ratios impact long-term returns for international ETFs?

Expense ratios can significantly impact long-term returns for international ETFs like EFA and VXUS. EFA's 0.32% expense ratio versus VXUS's 0.05% means that for every $10,000 invested, EFA charges $32 annually, while VXUS charges $5. Over decades, the cumulative fee difference can erode returns, making the lower-cost VXUS more efficient for long-term growth. However, the actual return difference depends on market performance and investment horizon.

Which investing goal is EFA typically associated with, and how does VXUS differ in its typical investing goal?

EFA is typically associated with investors seeking to minimise exposure to emerging market volatility and prefer a focus on developed international markets. VXUS is often chosen by investors looking for a broader diversification across international markets, including emerging economies. Neither fund is universally superior; the typical association reflects different objectives regarding market breadth and risk tolerance.

EFA vs VXUS

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

Compare the iShares MSCI EAFE ETF (EFA) and Vanguard Total International Stock ETF (VXUS). This page contrasts fees, holdings, dividends, and how each fund tracks global markets. EFA charges a 0.32% expense ratio versus VXUS at 0.05%. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

EFA

Metric

VXUS

0.32%

Expense Ratio

0.05%

3.16%

Dividend Yield

2.28%

$77.65B

Net Assets

$164.04B

688

Holdings

8,860

Aug 14, 2001

Inception Date

Jan 26, 2011

–

Index Tracked

–

Foreign Large Blend

Fund Category

Foreign Large Blend

VXUS costs about $27.00 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

EFA

Pros

The fund tracks developed markets, avoiding emerging market volatility.
Established in 2001, it offers a long track record for investors.
Substantial net assets of $77.7 billion support high trading liquidity.

Considerations

Expense ratio of 0.32% is high compared to passive alternatives.
Lacks exposure to emerging markets, reducing overall international diversification.
Dividend yield of 3.16% may attract short-term yield seekers only.

VXUS

Pros

Low expense ratio of 0.05% supports strong net return potential.
Tracks all international markets, including emerging economies for broad access.
Massive net assets of $164.0 billion indicate robust scale and stability.

Considerations

Dividend yield of 2.28% is lower than developed market peers.
Inception date of 2011 means a shorter historical performance record.
Emerging market exposure increases volatility relative to developed-only funds.

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About EFA and VXUS

EFA (EFA)

The iShares MSCI EAFE ETF (EFA) is a widely recognised investment vehicle designed to provide broad exposure to large and mid-cap companies in developed markets outside the United States and Canada. The term 'EAFE' stands for Europe, Australasia, and the Far East. This fund allows investors to diversify their portfolios geographically, accessing established economies across regions such as the UK, Japan, Australia, and Switzerland. With a history dating back to 2001, it offers a relatively stable track record for those seeking international diversification. While it holds hundreds of stocks, investors should remember that global equities carry risks, including currency fluctuations and varying regulatory environments. Returns are not guaranteed, and values can fall as well as rise.

VXUS (VXUS)

Vanguard Total International Stock ETF (VXUS) offers investors broad exposure to non‑US equities across developed and emerging markets. The fund tracks a global index that excludes the United States and holds thousands of stocks spanning large-, mid- and small-cap companies. It is structured as a passive, market‑capitalisation‑weighted ETF, which aims to replicate international equity market performance while keeping trading simplicity and diversification benefits. VXUS is typically unhedged to sterling or other home currencies, so returns can be affected by currency movements as well as underlying stock performance. Investors should note that, like all equity funds, values can fall as well as rise and past performance does not guarantee future results. This summary provides general, educational information and is not personalised investment advice; suitability depends on an individual’s circumstances, risk tolerance and investment horizon.

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EFA vs VXUS

Fund Snapshot