EFA vs VEA Stock Comparison: AI Score, Valuation, Performance and Upside
EFA and VEA are both developed market international ETFs tracking similar but slightly different indexes. VEA is dramatically cheaper at 0.06% vs EFA's 0.32% and includes Canada and small-cap stocks that EFA excludes. For any investor not requiring EFA's specific institutional liquidity advantages, VEA is the clearly superior choice — same developed market exposure at one-fifth the cost.
EFA vs VEA is the institutional-standard MSCI EAFE international developed market benchmark (EFA) versus the more comprehensive and dramatically cheaper Vanguard developed market ETF including Canada and small-caps (VEA) — VEA's 0.26% annual cost advantage and broader coverage make it the preferred developed market allocation for most investors.
VEA holds the edge across 3 of 5 key metrics in this comparison. VEA has delivered stronger 1-year price return (+34.18% vs +23.96% for EFA).
- →need MSCI EAFE specifically for institutional benchmarking or index-matching requirements
- →use iShares ETFs and receive commission-free trading on EFA with institutional-grade EFA options market access
- →have large institutional positions where EFA's superior liquidity and options depth justify the 0.26% cost premium
- →are comfortable paying 0.32% for EFA's specific institutional infrastructure and options market depth
- →prefer the lowest-cost developed market international ETF at 0.06% vs EFA's 0.32% — saving 0.26% annually
- →value more comprehensive developed market coverage including Canada and small-cap stocks not in EFA
- →want Vanguard's structural cost minimization advantages for their international equity allocation
- →are comfortable with VEA's FTSE index vs EAFE (slightly different country and company composition) for retail-scale position sizes
| Metric | EFA | VEA |
|---|---|---|
| ETF score | 75.0 | 94.0 |
| Latest close | $104.41 | $72.31 |
| 1M return | +4.06% | +5.36% |
| 6M return | +12.65% | +19.39% |
| 1Y return | +23.96% | +34.18% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | EFA | VEA |
|---|---|---|
| 1Y ago | $12.82K (+28.2%) started 2025-06-18 | $13.92K (+39.2%) started 2025-06-18 |
| 5Y ago | $18.45K (+84.5%) started 2021-06-18 | $19.7K (+97.0%) started 2021-06-18 |
| 10Y ago | $35.73K (+257.3%) started 2016-06-20 | $38.12K (+281.2%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
| Metric | EFA | VEA |
|---|---|---|
| Expense ratio | 0.32% | 0.03% |
| Total assets (AUM) | $77.42B | $317.3B |
| Dividend yield | 3.10% | 2.61% |
| Trailing P/E | 18.55 | 18.64 |
| Beta | 0.79 | 0.85 |
| 52-week change | 23.96% | 34.18% |
| Metric | EFA | VEA |
|---|---|---|
| 1Y return | +23.96% | +34.18% |
| 6M return | +12.65% | +19.39% |
| 1M return | +4.06% | +5.36% |
| 1Y Sharpe ratio | 1.18 | 1.60 |
| Beta | 0.79 | 0.85 |
| Dividend yield | 3.10% | 2.61% |
| 5Y CAGR | +9.25% | +10.55% |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | EFA | VEA |
|---|---|---|---|
| 1Y | Growth | +23.96% | +34.18% |
| CAGR | +23.98% | +34.21% | |
| Sharpe ratio | 1.18 | 1.60 | |
| Max drawdown | 11.42% | 11.63% | |
| Max daily drop | 3.11% | 3.72% | |
| Max wkly drop | 6.74% | 7.06% | |
| 5Y | Growth | +55.65% | +65.12% |
| CAGR | +9.25% | +10.55% | |
| Sharpe ratio | 0.35 | 0.42 | |
| Max drawdown | 29.53% | 29.71% | |
| Max daily drop | 6.60% | 6.33% | |
| Max wkly drop | 10.86% | 10.51% | |
| 10Y | Growth | +147.26% | +170.47% |
| CAGR | +9.48% | +10.47% | |
| Sharpe ratio | 0.35 | 0.40 | |
| Max drawdown | 34.19% | 35.74% | |
| Max daily drop | 10.99% | 11.18% | |
| Max wkly drop | 20.42% | 20.94% |
| Category | EFA | VEA |
|---|---|---|
| Fund name | iShares MSCI EAFE ETF | Vanguard FTSE Developed Markets Index Fund ETF Shares |
| Type | ETF | ETF |
| Expense ratio | 0.32% | 0.03% |
| Total assets (AUM) | $77.42B | $317.3B |
| Dividend yield | 3.10% | 2.61% |
- →MSCI EAFE is the institutional standard for international developed market performance benchmarking
- →Covers Europe's major economies (Germany, France, UK, Switzerland, Netherlands), Japan, and Australia for comprehensive non-US developed market exposure
- →Deep liquidity for institutional-scale international equity trading and options strategies
- →0.06% expense ratio is one-fifth of EFA's cost — Vanguard's structural advantages deliver dramatically lower cost for similar exposure
- →Includes Canada and small/mid-cap stocks for more complete developed market coverage than EAFE's large-cap-only universe
- →4,000+ holdings provides the most comprehensive developed market diversification available in a single ETF
- →0.32% expense ratio vs VEA's 0.06% — VEA provides nearly identical coverage at one-fifth the cost
- →EAFE excludes Canada, which is included in VEA — slight difference but Canada adds meaningful additional holdings
- →Currency exposure across EUR, GBP, JPY, CHF, and others adds FX volatility to international returns
- →Includes Canada and small/mid-cap — slight composition difference from EFA means VEA and EFA don't track identically
- →Lower liquidity than EFA for very large institutional trading volumes — tight bid-ask spreads exist but options market is less deep than EFA
- →Developed market international equity has underperformed US equity significantly for 15 years — currency drag and lower growth rates have compressed returns vs domestic US allocation
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