IEFA vs VEU Stock Comparison: AI Score, Valuation, Performance and Upside
IEFA and VEU sit in related but distinct corners of the ETF landscape — IEFA centers on the traditional EAFE benchmark for developed international exposure, while VEU focuses on one-fund exposure to the entire world outside the US. Investors choosing between them should weigh how each fund's strategy lines up with their own goals rather than assuming they're interchangeable.
Choosing between IEFA and VEU comes down to which specific exposure — the traditional EAFE benchmark for developed international exposure or one-fund exposure to the entire world outside the US — better matches the role you want this holding to play in a diversified portfolio.
VEU holds the edge across 3 of 5 key metrics in this comparison. VEU has delivered stronger 1-year price return (+20.64% vs +16.24% for IEFA).
- want the traditional EAFE benchmark for developed international exposure
- prefer iShares (BlackRock)'s approach and fund lineup
- value tracks the long-standing, widely used EAFE benchmark
- are comfortable with currency risk from unhedged foreign holdings
- want one-fund exposure to the entire world outside the US
- prefer Vanguard's approach and fund lineup
- value combines developed and emerging markets in a single low-cost fund
- are comfortable with less precise control over developed-vs-emerging mix than separate funds
| Metric | IEFA | VEU |
|---|---|---|
| ETF scorei | 73.0 | 78.0 |
| Latest closei | $97.99 | $83.86 |
| 1M returni | -2.46% | -1.06% |
| 6M returni | +14.17% | +15.91% |
| 1Y returni | +16.24% | +20.64% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | IEFA | VEU |
|---|---|---|
| 1Y ago | $12.05K (+20.5%) started 2025-09-18 | $12.44K (+24.4%) started 2025-09-18 |
| 5Y ago | $18.32K (+83.2%) started 2021-09-20 | $18.89K (+88.9%) started 2021-09-20 |
| 10Y ago | $34.85K (+248.5%) started 2016-09-19 | $35.28K (+252.8%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | IEFA | VEU |
|---|---|---|
| Expense ratioi | 0.07% | 0.04% |
| Total assets (AUM)i | $194.39B | $98.64B |
| Dividend yieldi | 3.29% | 2.48% |
| Trailing P/Ei | 17.84 | 16.49 |
| Betai | 0.81 | 0.80 |
| 52-week change | 16.24% | 20.64% |
| Metric | IEFA | VEU |
|---|---|---|
| 1Y returni | +16.24% | +20.64% |
| 6M returni | +14.17% | +15.91% |
| 1M returni | -2.46% | -1.06% |
| 1Y Sharpe ratio | 0.76 | 0.92 |
| Betai | 0.81 | 0.80 |
| Dividend yieldi | 3.29% | 2.48% |
| 5Y CAGR | +8.94% | +9.77% |
Over the past year, IEFA and VEU have moved strongly in the same direction (correlation of 0.96), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | IEFA | VEU |
|---|---|---|---|
| 1Y | Growthi | +16.24% | +20.64% |
| CAGRi | +16.25% | +20.65% | |
| Volatilityi | 15.68% | 17.14% | |
| Sharpe ratioi | 0.76 | 0.92 | |
| Sortino ratioi | 1.12 | 1.34 | |
| Max drawdowni | 11.50% | 11.43% | |
| Current drawdowni | 3.37% | 2.72% | |
| Avg drawdowni | 1.88% | 1.99% | |
| Ulcer Indexi | 3.02% | 3.15% | |
| Max daily dropi | 3.12% | 3.76% | |
| Max wkly dropi | 6.56% | 6.89% | |
| 5Y | Growthi | +53.39% | +59.31% |
| CAGRi | +8.94% | +9.77% | |
| Volatilityi | 16.64% | 16.38% | |
| Sharpe ratioi | 0.33 | 0.38 | |
| Sortino ratioi | 0.48 | 0.55 | |
| Max drawdowni | 30.02% | 28.47% | |
| Current drawdowni | 3.37% | 2.72% | |
| Avg drawdowni | 6.63% | 6.76% | |
| Ulcer Indexi | 9.53% | 9.51% | |
| Max daily dropi | 6.51% | 6.12% | |
| Max wkly dropi | 10.56% | 10.93% | |
| 10Y | Growthi | +145.61% | +152.23% |
| CAGRi | +9.41% | +9.70% | |
| Volatilityi | 17.02% | 17.07% | |
| Sharpe ratioi | 0.35 | 0.37 | |
| Sortino ratioi | 0.48 | 0.50 | |
| Max drawdowni | 34.79% | 34.98% | |
| Current drawdowni | 3.37% | 2.72% | |
| Avg drawdowni | 6.56% | 7.01% | |
| Ulcer Indexi | 9.34% | 9.72% | |
| Max daily dropi | 10.85% | 11.35% | |
| Max wkly dropi | 20.43% | 19.90% |
| Category | IEFA | VEU |
|---|---|---|
| Fund name | iShares Core MSCI EAFE ETF | Vanguard FTSE All-World ex-US Index Fund ETF Shares |
| Type | ETF | ETF |
| Expense ratioi | 0.07% | 0.04% |
| Total assets (AUM)i | $194.39B | $98.64B |
| Dividend yieldi | 3.29% | 2.48% |
- Tracks the long-standing, widely used EAFE benchmark
- Very low expense ratio in BlackRock's Core lineup
- High liquidity among international equity ETFs
- Combines developed and emerging markets in a single low-cost fund
- Simplifies a global ex-US allocation into one holding
- Vanguard's low-cost, tax-efficient structure
- Currency risk from unhedged foreign holdings
- Developed international has structurally lagged US equities
- No emerging-market or Canadian exposure under the EAFE definition
- Less precise control over developed-vs-emerging mix than separate funds
- Emerging-market component adds volatility and currency risk
- Overlaps with both VEA and VWO if held together
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