EFA vs VWO
iShares MSCI EAFE ETF vs Vanguard Emerging Markets Stock Index Fund
Last updated: 2026-04-02
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.
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 2.76%. Launched in 2005, the fund has a 21-year track record.
Quick Verdict
VWO is significantly cheaper at 0.06% vs 0.32% expense ratio, saving you approximately $512 per $10,000 invested over 10 years. EFA has edged ahead over the past year (20.5% vs 19.4%). Income investors may prefer EFA for its higher yield (3.3% vs 2.8%).
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)
EFA Top Holdings
| Name | Weight |
|---|---|
| ASML Holding N.V.!ams/ASML | 2.54% |
| AstraZeneca PLC!lon/AZN | 1.46% |
| Novartis AG!swx/NOVN | 1.41% |
| Roche Holding AG!swx/ROP | 1.36% |
| HSBC Holdings plc!lon/HSBA | 1.36% |
| Shell plc!lon/SHEL | 1.31% |
| Nestlé S.A.!swx/NESN | 1.22% |
| Toyota Motor Corporation!tyo/7203 | 1.00% |
| Commonwealth Bank of Australia!asx/CBA | 0.99% |
| Mitsubishi UFJ Financial Group, Inc.!tyo/8306 | 0.95% |
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!hkg/9988 | 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...
you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.
Choose EFA if...
you prioritize dividend income and want higher regular distributions from your portfolio.