ETF Versus

EFA vs VIG

iShares MSCI EAFE ETF vs Vanguard Dividend Appreciation Index Fund ETF Shares

Last updated: 2026-04-02

EFA iShares

iShares MSCI EAFE ETF (EFA) is an exchange-traded fund issued by iShares that provides exposure to equities in developed international markets outside the U.S.. It charges an above-average expense ratio of 0.32%. The fund offers an attractive dividend yield of 3.29%. Launched in 2001, the fund has a 25-year track record.

AUM: $69.1B ER: 0.32% Yield: 3.29% Since: Aug 14, 2001
VIG Vanguard

Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) is an exchange-traded fund issued by Vanguard that provides exposure to U.S. dividend-paying stocks selected for yield or dividend growth. It charges a very low expense ratio of 0.04%. The fund offers a moderate dividend yield of 1.60%. Launched in 2006, the fund has a 20-year track record.

AUM: $97.2B ER: 0.04% Yield: 1.60% Since: Apr 21, 2006

Quick Verdict

VIG is significantly cheaper at 0.04% vs 0.32% expense ratio, saving you approximately $551 per $10,000 invested over 10 years. Over the past year, EFA has significantly outperformed with a 20.5% return vs 11.4%. Income investors may prefer EFA for its higher yield (3.3% vs 1.6%).

Key Metrics

Metric EFA VIG
Expense Ratio 0.32% 0.04%
Dividend Yield 3.3% 1.6%
Fund Family iShares Vanguard
Category International Developed US Dividend

Performance Chart

Indexed to 100 at start (5-year comparison)

70 87 104 121 138 155 2021-04 2022-06 2023-09 2024-12 2026-04
EFA +26.5%
VIG +43.7%

Performance Comparison

Period EFA VIG Difference
1 Month -4.54% -5.05% +0.51%
3 Months +1.62% -2.23% +3.85%
6 Months +3.71% -0.97% +4.68%
YTD +1.62% -2.23% +3.85%
1 Year +20.48% +11.38% +9.10%
3 Years +36.79% +39.10% -2.31%
5 Years +26.46% +43.71% -17.25%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period EFA Fees VIG Fees You Save
$10.000 10 years $631 $80 $551
$10.000 20 years $2.686 $344 $2.342
$10.000 30 years $8.571 $1.112 $7.459
$50.000 10 years $3.156 $399 $2.757
$50.000 30 years $42.854 $5.560 $37.293
$100.000 30 years $85.707 $11.121 $74.586

Risk Metrics

Based on 5 years of daily returns

Metric EFA VIG
Annualized Volatility 16.6% 14.3%
Max Drawdown -32.4% -21.5%
Sharpe Ratio 0.10 0.27

Dividend Comparison

Metric EFA VIG
Annual Dividend (per share) $3.25 $3.45
Dividend Yield 3.29% 1.60%
Distribution Frequency Semi-Annual or Annual Quarterly

Top Holdings

0 of top 10 holdings overlap (0% overlap in top holdings)

EFA Top Holdings

NameWeight
ASML Holding N.V.!ams/ASML2.54%
AstraZeneca PLC!lon/AZN1.46%
Novartis AG!swx/NOVN1.41%
Roche Holding AG!swx/ROP1.36%
HSBC Holdings plc!lon/HSBA1.36%
Shell plc!lon/SHEL1.31%
Nestlé S.A.!swx/NESN1.22%
Toyota Motor Corporation!tyo/72031.00%
Commonwealth Bank of Australia!asx/CBA0.99%
Mitsubishi UFJ Financial Group, Inc.!tyo/83060.95%

VIG Top Holdings

NameWeight
Broadcom Inc.AVGO5.92%
Apple Inc.AAPL3.89%
Eli Lilly and CompanyLLY3.70%
Microsoft CorporationMSFT3.45%
JPMorgan Chase & Co.JPM3.42%
Exxon Mobil CorporationXOM2.87%
Johnson & JohnsonJNJ2.65%
Walmart Inc.WMT2.48%
Visa Inc.V2.23%
Costco Wholesale CorporationCOST1.98%

Which One Should You Choose?

Choose VIG if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose EFA if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose EFA if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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