IEFA vs VWO
iShares Core MSCI EAFE ETF vs Vanguard Emerging Markets Stock Index Fund
Last updated: 2026-04-10
iShares Core MSCI EAFE ETF (IEFA) is an exchange-traded fund issued by iShares that provides exposure to equities in developed international markets outside the U.S.. It charges a low expense ratio of 0.07%. The fund offers an attractive dividend yield of 3.33%. Launched in 2012, the fund has a 14-year track record.
Vanguard Emerging Markets Stock Index Fund (VWO) is an exchange-traded fund issued by Vanguard that provides exposure to stocks in emerging market economies with higher growth potential. It charges a low expense ratio of 0.06%. The fund offers an attractive dividend yield of 2.64%. Launched in 2005, the fund has a 21-year track record.
Quick Verdict
Both funds have nearly identical expense ratios (0.06% vs 0.07%), so fees are not a differentiator here. VWO has edged ahead over the past year (35.4% vs 33.2%). Income investors may prefer IEFA for its higher yield (3.3% vs 2.6%).
Key Metrics
Performance Chart
Indexed to 100 at start (5-year comparison)
Performance Comparison
Fee Impact Over Time
Estimated fee cost difference assuming 8% annual returns
Risk Metrics
Based on 5 years of daily returns
Dividend Comparison
Top Holdings
0 of top 8 holdings overlap (0% overlap in top holdings)
IEFA Top Holdings
| Name | Weight |
|---|---|
| ASML Holding N.V.!ams/ASML | 2.18% |
| AstraZeneca PLC!lon/AZN | 1.26% |
| HSBC Holdings plc!lon/HSBA | 1.22% |
| Novartis AG!swx/NOVN | 1.16% |
| Roche Holding AG!swx/ROP | 1.11% |
| Shell plc!lon/SHEL | 1.03% |
| Nestlé S.A.!swx/NESN | 1.02% |
| Commonwealth Bank of Australia!asx/CBA | 0.84% |
| Siemens Aktiengesellschaft!etr/SIE | 0.82% |
| Mitsubishi UFJ Financial Group, Inc.!tyo/8306 | 0.81% |
VWO Top Holdings
| Name | Weight |
|---|---|
| Taiwan Semiconductor Manufacturing Company Limited!tpe/2330 | 12.71% |
| Tencent Holdings Limited!hkg/0700 | 3.44% |
| Alibaba Group Holding Limited!otc/BABAF | 2.74% |
| HDFC Bank Limited!nse/HDFCBANK | 0.93% |
| Reliance Industries Limited!nse/RELIANCE | 0.88% |
| Hon Hai Precision Industry Co., Ltd.!tpe/2317 | 0.78% |
| MediaTek Inc.!tpe/2454 | 0.76% |
| China Construction Bank Corporation!hkg/0939 | 0.75% |
Which One Should You Choose?
Choose VWO if...
recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.
Choose IEFA if...
you prioritize dividend income and want higher regular distributions from your portfolio.