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<h2>Key Points</h2><ul><li>VXUS covers both developed and emerging markets, while IEFA focuses on developed markets outside the U.S. and Canada</li><li>IEFA comes with a slightly higher expense ratio but a higher dividend yield compared to VXUS</li><li>VXUS holds far more stocks, offering broader diversification, while IEFA has shown a marginally higher five-year growth of $1,000</li><li>10 stocks we like better than iShares Trust - iShares Core Msci Eafe ETF ›</li></ul><p>Vanguard Total International Stock ETF (<strong>NASDAQ:VXUS</strong>) and iShares Core MSCI EAFE ETF (<strong>NYSEMKT:IEFA</strong>) differ most in their market coverage, with VXUS including emerging markets and IEFA focusing just on developed markets, plus a modest gap in yield and diversification breadth.</p><p>Both VXUS and IEFA aim to provide investors with international equity exposure beyond the United States, but they take different paths: VXUS spans the globe’s developed and emerging markets, while IEFA sticks to developed regions, excluding both the U.S. and Canada. This comparison highlights their cost, performance, sector tilts, and portfolio composition to help clarify which may appeal for different investment goals.</p><h2 id="snapshot-cost-amp-size">Snapshot (cost &amp; size)</h2><section><table><tbody><tr><th>Metric</th><th>VXUS</th><th>IEFA</th></tr><tr><td>Issuer</td><td>Vanguard</td><td>IShares</td></tr><tr><td>Expense ratio</td><td>0.05%</td><td>0.07%</td></tr><tr><td>1-yr return (as of Apr. 21, 2026)</td><td>34%</td><td>26.52%</td></tr><tr><td>Dividend yield</td><td>2.8%</td><td>3.3%</td></tr><tr><td>Beta</td><td>0.77</td><td>0.81</td></tr><tr><td>Assets under management (AUM)</td><td>$582.3 billion</td><td>$182.3 billion</td></tr></tbody></table></section><p><em>Beta measures price volatility relative to the S&amp;P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.</em></p><p>IEFA charges a slightly higher expense ratio than VXUS, but it offers a higher dividend yield, which may appeal to investors prioritizing income over minimal cost difference.</p><h2 id="performance-amp-risk-comparison">Performance &amp; risk comparison</h2><section><table><tbody><tr><th>Metric</th><th>VXUS</th><th>IEFA</th></tr><tr><td>Max drawdown (five years)</td><td>(29.46%)</td><td>(30.41%)</td></tr><tr><td>Growth of $1,000 over five years</td><td>$1,515</td><td>$1,527</td></tr></tbody></table></section><h2 id="whatx27s-inside">What's inside</h2><p>IEFA tracks a developed-markets-only approach, covering 2,626 stocks across Europe, Asia, and Australia, but excluding emerging economies and Canada. Its largest sector weights are financial services (23%), industrials (20%), and healthcare (10%). The fund’s top holdings include ASML Holding NV (AMS:ASML.AS), Astrazeneca Plc (LSE:AZN.L), and HSBC Holdings Plc (LSE:HSBA.L). With a thirteen-and-a-half-year history, IEFA offers focused, regionally diversified exposure but may miss growth from emerging markets.</p><p>VXUS, by contrast, provides broader coverage spanning 8,602 stocks from both developed and emerging markets. Its largest sector allocations are financial services (22%), industrials (16%), and technology (16%). Top positions feature Taiwan Semiconductor Manufacturing Co Ltd (2330.TW), Samsung Electronics Co Ltd (005930.KS), and ASML Holding NV (AMS:ASML.AS), reflecting a wider global reach and potentially more diversification. Both funds are passively managed and do not carry quirks like leverage, hedging, or ESG overlays.</p><p>For more guidance on ETF investing, check out the full guide at this link.</p><h2 id="what-this-means-for-investors">What this means for investors</h2><p>The cost difference between these two funds is two basis points — essentially irrelevant. The yield gap is real but modest. The actual decision comes down to one question: do you want emerging markets in your international allocation or not?</p><p>IEFA covers 2,626 stocks across developed markets in Europe, Asia, and Australia — no emerging economies, no Canada. VXUS covers 8,602 stocks and adds emerging markets to that mix, which explains most of the performance gap over the past year. Emerging markets outperformed developed markets over that period, and VXUS captured it; IEFA didn't. That won't always be the direction of the gap.</p><p>What's counterintuitive is the beta. Despite its broader scope, VXUS at 0.77 is actually slightly less correlated to the S&amp;P 500 than IEFA at 0.81. Adding emerging markets exposure doesn't necessarily mean adding volatility relative to your domestic holdings.</p><p>For investors building a core international allocation, IEFA is the cleaner, more focused choice if you want pure developed market exposure. VXUS is the one-fund solution if you want global ex-US coverage without managing two separate positions. Neither is wrong — the choice depends on how you want to build the rest of the portfolio around it.</p><h2>Should you buy stock in iShares Trust - iShares Core Msci Eafe ETF right now?</h2>
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<p style="color: #767676; text-align: left"><em>*Stock Advisor returns as of April 22, 2026. </em></p><p><em>Seena Hassouna has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.</em></p>
<p>The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.</p>
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VXUS

IEFA

<p>The comparison between Vanguard Total International Stock ETF (VXUS) and iShares Core MSCI EAFE ETF (IEFA) highlights their differences in market coverage, expense ratios, and performance. VXUS includes both developed and emerging markets, offering broader diversification with a lower expense ratio of 0.05% and a 1-year return of 34%. In contrast, IEFA focuses solely on developed markets, has a slightly higher expense ratio of 0.07%, and a 1-year return of 26.52%. The choice between the two funds depends on whether investors want exposure to emerging markets or prefer a focused developed market approach.</p>

Choosing Between VXUS and IEFA Comes Down to One Question