VXUS vs. IEFA: Broader Global Reach or Developed-Market Stability?

Overview

• Vanguard’s VXUS includes emerging markets with roughly a 75% developed and 25% emerging mix, whereas iShares’ IEFA focuses on developed markets in Europe, Australasia, and the Far East.
• Fees slightly favor VXUS at a 0.05% expense ratio compared with 0.07% for IEFA, while IEFA offers a higher dividend yield at 3.5% versus 3.1% for VXUS.
• Over the past year through Jan. 30, 2026, VXUS returned 29.5% compared with 26.6% for IEFA, reflecting the recent boost from emerging-market exposure.
• Risk profiles diverge as IEFA’s five-year beta is 0.73 versus 1.00 for VXUS, and IEFA targets lower volatility by excluding emerging markets.
• VXUS holds more than 8,600 stocks with top positions including TSMC, Tencent, and ASML, while IEFA owns 2,589 developed-market names led by ASML, Roche, and HSBC.