How do the fees for IEFA and IXUS compare?

Both funds share the exact same expense ratio of 0.07%. Since their annual fee percentages are identical, an investor holding either fund for ten years would pay exactly the same percentage of their assets to iShares each year. For example, on an $10,000 investment, both funds cost $7 annually in management fees. There is no difference in cost between the two options, so the decision should not be based on expense ratios alone.

What is the main difference between these two ETFs?

The primary distinction lies in market coverage. IEFA focuses solely on developed international markets, specifically Europe, Australasia, and the Far East (EAFE). IXUS is a total international fund that combines developed markets with emerging economies. While IEFA offers stability from established regulatory frameworks, IXUS provides broader global representation including high-growth potential from developing nations, though it accepts higher volatility from emerging markets.

How do I understand the index tracking difference?

IEFA tracks the MSCI EAFE Index, which excludes major emerging markets like China, India, and Brazil. IXUS tracks the MSCI ACWI ex USA Investable Market Index, which includes both developed and emerging stocks outside the US. This means IXUS holds companies from a wider range of geographies and market maturity levels. Beginners should note that

Which fund might suit a beginner investor's goals?

An investor seeking exposure strictly to developed economies might consider IEFA, as it targets Europe, Australasia, and Far East markets. An investor seeking comprehensive global exposure outside the US in a single fund might consider IXUS, as it covers both developed and emerging markets. Neither fund is superior; they address different preferences regarding market breadth and risk tolerance. The choice depends on whether the investor wants emerging markets included or excluded from their international allocation.

How do dividends differ between IEFA and IXUS?

IEFA has a current dividend yield of 3.32%, while IXUS yields 2.88%. This difference arises because developed markets typically include more mature companies that pay higher dividends, whereas IXUS includes emerging markets, which often prioritise growth over payouts. Investors focused on passive income might view IEFA's higher yield as attractive, but should remember that total international exposure in IXUS also offers potential capital appreciation from emerging market growth.

What risks should I know about emerging market exposure?

IXUS includes emerging markets, adding volatility and geopolitical risks compared to developed-only funds. For example, concentration in countries like China can introduce policy uncertainty affecting portfolio stability. IEFA avoids these specific emerging market risks but carries higher currency and political risk in Japan, its largest holding. Investors should consider if they prefer the potential high growth of emerging markets in IXUS or the stability and lower volatility of developed markets in IEFA.

Can I own both IEFA and IXUS in my portfolio?

Yes, but it is redundant. Since IXUS includes the same developed markets that IEFA targets, holding both creates overlap and potentially increases transaction costs without adding diversification. An investor choosing both essentially double-counts their developed international exposure. Typically, an investor selects one fund based on their preference for emerging market inclusion or exclusion. If seeking emerging markets alongside developed, IXUS is the more efficient single-fund solution.

How does currency exposure affect these ETFs?

Both funds are exposed to currency fluctuations between the US dollar and the foreign currencies of their holdings. If the US dollar strengthens, the value of foreign holdings falls, reducing returns. IEFA is heavily exposed to European and Japanese currencies, while IXUS includes those plus emerging market currencies, which can be more volatile. Neither fund is inherently superior; currency hedging benefits or risks depend on the investor's view of the US dollar versus global currencies.

Are these funds suitable for long-term investing?

Both funds are considered core building blocks for long-term international diversification. With net assets of $192.2 billion for IEFA and $59.6 billion for IXUS, they are large, established ETFs with inception dates in 2012. Long-term investors benefit from their low 0.07% expense ratios. IEFA offers developed market stability; IXUS offers comprehensive global growth. The right fund depends on whether an investor prefers a pure developed market strategy or a total international approach including emerging economies.

Where can I find more detailed fund information?

While this page provides a factual comparison of key metrics like fees and yields, investors seeking in-depth analysis should refer to official fund documents and prospectuses from iShares. Market conditions change, so checking the latest net asset values, holdings data, and performance figures on major financial platforms is advisable. Understanding these metrics helps you interpret the data here in context and evaluate suitability for your financial situation.

Do IEFA and IXUS have any top-ten holdings in common?

Based on the fund data provided, none of the top-ten holdings overlap. This is likely because IEFA excludes many emerging market companies that might appear in IXUS's top ten. While both funds hold companies like Nestle or ASML due to IEFA's developed market focus, the specific weighting or inclusion of emerging giants in IXUS means the top-ten lists can differ significantly. Investors should view top-holdings lists as a snapshot, not a complete portfolio map.

Is IEFA or IXUS the better choice for dividends?

IEFA currently offers a higher dividend yield at 3.32% compared to IXUS's 2.88%. For income-focused investors, IEFA's developed market composition, with higher payout ratios from mature firms, generates more cash flow. However, choosing based solely on yield ignores potential capital growth in IXUS from emerging markets. Investors seeking income might prefer IEFA, while those prioritising total return and diversification might accept a slightly lower yield for broader global exposure in IXUS.

IEFA vs IXUS

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

This page compares IEFA (iShares Core MSCI EAFE ETF) and IXUS (iShares Core MSCI Total International Stock ETF), focusing on fees, holdings, dividends and how each fund tracks its market. Both have identical expense ratios and inception dates. Top holdings are not available. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

IEFA

Metric

IXUS

0.07%

Expense Ratio

0.07%

3.32%

Dividend Yield

2.88%

$192.23B

Net Assets

$59.60B

2,657

Holdings

4,660

Oct 18, 2012

Inception Date

Oct 18, 2012

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Index Tracked

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Foreign Large Blend

Fund Category

Foreign Large Blend

Both funds charge the same annual fee.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

IEFA

Pros

Developed market exposure targets Europe, Australasia and Far East investors seeking stable international growth opportunities.
Lower volatility than emerging markets due to stricter corporate governance and regulatory standards across developed economies.
Provides significant currency hedging advantages during US dollar strengthening periods across international developed market holdings.

Considerations

Misses high-growth potential from emerging markets and frontier economies available in broader international investment strategies.
Concentrated risk in Japan creates significant currency exposure and single-market dependency affecting overall portfolio performance.
Exclusion of emerging markets limits diversification benefits and potential high-growth opportunities in developing economies.

IXUS

Pros

Broadest international coverage includes both developed and emerging markets for comprehensive global investment exposure.
Emerging markets component provides high growth potential and diversification benefits from rapidly developing global economies.
Total international allocation eliminates the need for multiple ETFs to access global markets efficiently.

Considerations

Higher volatility risk from emerging market exposure compared to developed market alternatives for risk-sensitive investors.
Lower dividend yield than developed market alternatives reduces passive income opportunities for income-focused investors.
Emerging markets concentration risk from China creates geopolitical and economic policy uncertainty affecting portfolio stability.

About IEFA and IXUS

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.

IXUS (IXUS)

The iShares Core MSCI Total International Stock ETF (IXUS) is an exchange-traded fund designed to provide broad exposure to international equity markets outside of the United States. It focuses on large and mid-cap stocks across developed and emerging markets, excluding North America. With a vast portfolio of over 4,600 holdings, the fund offers investors a convenient way to diversify their portfolios globally. It has a low expense ratio of 0.07% and net assets of approximately USD 59.60 billion, making it a cost-effective option for accessing international markets. The fund has provided a dividend yield of 2.88% and aims to track the performance of its underlying benchmark index. However, investors should note that while this fund offers significant diversification, international markets carry their own set of risks, including currency fluctuations and geopolitical instability. As always, remember that values can go down as well as up.

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IEFA vs IXUS

Fund Snapshot

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Investment Analysis

IEFA

Pros

Considerations

IXUS

Pros

Considerations

About IEFA and IXUS

Buy IEFA or IXUS in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Frequently asked questions

How do the fees for IEFA and IXUS compare?

What is the main difference between these two ETFs?

How do I understand the index tracking difference?

Which fund might suit a beginner investor's goals?

How do dividends differ between IEFA and IXUS?

What risks should I know about emerging market exposure?

Can I own both IEFA and IXUS in my portfolio?

How does currency exposure affect these ETFs?

Are these funds suitable for long-term investing?

Where can I find more detailed fund information?

Do IEFA and IXUS have any top-ten holdings in common?

Is IEFA or IXUS the better choice for dividends?

Fund Snapshot

About IEFA and IXUS

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IEFA vs VEA

IEFA vs IEMG