What does 'Foreign Large Blend' mean for ETFs?

It indicates the fund invests in large companies across developed markets outside the US. Both IEFA and VEA fall into this category, suggesting they target similar global regions. 'Blend' means they combine growth and value stocks rather than focusing on one style. This classification helps investors understand the broad scope of their potential investments without assuming they are purely growth or purely value oriented.

Why is index data 'not available' for these funds?

Yahoo Finance might not display the underlying index name even if the fund tracks a specific benchmark like MSCI EAFE or FTSE Developed. Investors should verify the exact index via the issuer's official documentation. Without this data, it is difficult to know precise inclusion rules or rebalancing schedules, which might affect how closely the fund matches its intended market segment.

How do inception dates affect ETF comparison?

VEA started in July 2007, while IEFA launched in October 2012. A longer history provides more data points for performance analysis and helps assess how the fund behaved during different market cycles. However, older inception dates do not guarantee better future results. Investors should consider that IEFA is a newer fund with a shorter operating history, which might influence risk assessment.

How do the expense ratios of IEFA and VEA compare?

VEA has an expense ratio of 0.03%, which is 0.04 percentage points lower than IEFA's 0.07%. Lower fees can theoretically increase net returns over time, assuming all other factors remain equal. While both funds offer low costs compared to many other ETFs, the difference is modest. Investors should weigh this small cost saving against other factors like dividend yield or fund size when evaluating total costs.

What is the impact of a 0.04% fee difference?

A 0.04 percentage point difference might seem small, but over decades, it compounds. For example, on a $10,000 investment, the annual fee difference is four dollars. Over 30 years, this could save or cost more depending on market growth. However, for short-term holding, the impact is negligible. Long-term investors often prioritise lower expense ratios to minimise the drag on portfolio growth over extended periods.

Do these funds have any shared top holdings?

The available data lists SHOP as a top holding for VEA at 0.54%, while IEFA's top holdings are not available. Therefore, the data does not show any shared top-10 holdings between the two funds. This does not necessarily mean there is no overlap in their portfolios, as the underlying holdings might be identical but not listed due to data availability issues. It simply means the top ten are not comparable.

Which fund has larger net assets?

VEA has net assets of $233.8 billion, while IEFA holds $192.2 billion. Both are very large, indicating significant scale. Larger asset bases often correlate with better liquidity and tighter bid-ask spreads, making it easier to buy and sell shares. While VEA is larger, both funds are well-established enough to handle substantial trading volumes without major liquidity concerns for typical retail investors.

How do their dividend yields compare?

IEFA offers a dividend yield of 3.32%, which is higher than VEA's 2.35%. This 0.97 percentage point difference suggests IEFA currently pays more in distributions relative to its price. However, yields fluctuate with market prices and declared dividends. A higher yield is not always better; it could reflect different index methodologies, currency effects, or varying exposure to dividend-paying sectors. It is a key metric for income-focused investors.

Are these ETFs affected by currency fluctuations?

Yes, as Foreign Large Blend funds, they hold stocks from developed markets outside the US. Returns are heavily influenced by the strength of the US dollar against local currencies like the Euro or Japanese Yen. If the US dollar strengthens, the value of foreign assets can decrease in dollar terms, even if local stock prices rise. This currency risk applies to both IEFA and VEA similarly.

What are typical investor goals for these funds?

Investors often use these ETFs for global diversification beyond the US market. Both funds provide broad exposure to developed economies. IEFA's higher yield might appeal to those seeking income, while VEA's lower fee might attract cost-conscious long-term holders. Neither is suitable for specific sector bets or emerging market exposure. They are core holdings for a balanced portfolio aiming for developed market equity participation.

Is one fund more transparent than the other?

Both funds have limitations in the provided data. IEFA lacks published information on its specific index and top holdings. VEA also has no data on its index and lacks sector weightings, although it does list SHOP as a top holding. Therefore, neither fund is significantly more transparent based on this specific dataset. Investors seeking full transparency should consult the issuers' own websites for detailed holdings and index methodologies.

IEFA vs VEA

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

Compare IEFA (iShares Core MSCI EAFE ETF) and VEA (Vanguard FTSE Developed Markets ETF) by examining fees, assets, and dividend yields. See how these foreign large blend funds track their markets. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

IEFA

Metric

VEA

0.07%

Expense Ratio

0.03%

3.32%

Dividend Yield

2.35%

$192.23B

Net Assets

$233.81B

2,657

Holdings

3,922

Oct 18, 2012

Inception Date

Jul 20, 2007

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Index Tracked

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Foreign Large Blend

Fund Category

Foreign Large Blend

VEA costs about $4.00 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

IEFA

Pros

iShares Core MSCI EAFE ETF features a competitive expense ratio of 0.07%.
iShares Core MSCI EAFE ETF holds substantial assets, indicating good liquidity for traders.
iShares Core MSCI EAFE ETF offers a relatively attractive dividend yield of 3.32%.

Considerations

iShares Core MSCI EAFE ETF lacks published information on the specific index it tracks.
iShares Core MSCI EAFE ETF does not disclose top holdings or sector weights, hindering transparency.
iShares Core MSCI EAFE ETF is a newer fund compared to Vanguard FTSE Developed Markets ETF.

VEA

Pros

Vanguard FTSE Developed Markets ETF boasts an ultra-low expense ratio of 0.03%.
Vanguard FTSE Developed Markets ETF is one of the largest ETFs globally, with $233.8 billion in assets.
Vanguard FTSE Developed Markets ETF has a well-established track record since its 2007 inception.

Considerations

Vanguard FTSE Developed Markets ETF has no data on the index it tracks, limiting transparency.
Vanguard FTSE Developed Markets ETF does not provide detailed sector weightings, making asset allocation less clear.
Vanguard FTSE Developed Markets ETF yields only 2.35%, lower than iShares Core MSCI EAFE ETF.

About IEFA and VEA

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.

VEA (VEA)

The Vanguard FTSE Developed Markets ETF (VEA) is an exchange-traded fund designed to provide investors with broad exposure to large and mid-capitalisation companies in developed markets outside the United States. It seeks to track a benchmark index comprising thousands of holdings from regions including Europe, Australasia, and Canada. With a low expense ratio of 0.03%, this fund offers a cost-effective way to diversify a portfolio beyond domestic UK and US equities. The fund’s current dividend yield stands at 2.35%, reflecting potential income generation from its global holdings. As with any investment, the value of units can go down as well as up, and past performance is not a reliable indicator of future results. Investors should consider their risk tolerance and financial goals carefully, noting that currency fluctuations and regional economic shifts may impact returns.

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IEFA vs VEA

Fund Snapshot