VXUS vs EFA Stock Comparison: AI Score, Valuation, Performance and Upside
VXUS (Vanguard Total International Stock ETF) and EFA (iShares MSCI EAFE ETF) are both international equity ETFs but with very different scopes and costs — VXUS covers the entire world ex-U.S. (both developed and emerging markets, ~7,500 stocks) at 0.07%, while EFA covers only developed market equities in Europe, Australasia, and Far East (~800 large/mid-cap stocks) at 0.32%. For buy-and-hold investors wanting comprehensive international exposure at minimum cost, VXUS is generally the superior choice; EFA serves investors specifically seeking developed market only exposure or those with institutional benchmark requirements.
VXUS vs EFA is comprehensive global ex-U.S. market at minimal cost (Vanguard's VXUS capturing both developed and emerging market international equities in 7,500 holdings across 46 countries at 0.07% for complete global diversification) versus developed-only international benchmark ETF with institutional liquidity (iShares EFA tracking MSCI EAFE's 21 developed market countries at higher cost as the universal institutional developed market benchmark) — comprehensive and cheap versus developed-only and institutionally liquid.
VXUS holds the edge across 4 of 5 key metrics in this comparison. VXUS has delivered stronger 1-year price return (+32.98% vs +23.96% for EFA).
- →Want comprehensive global ex-U.S. equity exposure in a single ETF — VXUS's combination of developed and emerging markets captures the full international opportunity set that EFA misses by excluding China, India, Taiwan, and other emerging economies
- →Value Vanguard's cost leadership at 0.07% as a key differentiator versus EFA's 0.32% — over 20-30 years, the compounding cost difference is significant for long-term buy-and-hold investors
- →Use the three-fund portfolio (VTI + VXUS + BND) where VXUS naturally pairs with VTI for a complete global equity allocation
- →Specifically want developed market international exposure without emerging market volatility and governance risk — EFA's MSCI EAFE provides stable international diversification in mature markets with stronger regulatory frameworks
- →Need developed market institutional benchmark exposure — EFA tracks the MSCI EAFE, the universal international developed market benchmark; institutional investors managing against EAFE-benchmarked mandates use EFA for implementation
- →Want to separately control their developed and emerging market allocations — using EFA + EEM (or VWO for emerging) allows explicit control over the developed/emerging split versus VXUS's market-cap-weighted blend
| Metric | VXUS | EFA |
|---|---|---|
| ETF score | 92.0 | 75.0 |
| Latest close | $86.77 | $104.41 |
| 1M return | +5.27% | +4.06% |
| 6M return | +18.53% | +12.65% |
| 1Y return | +32.98% | +23.96% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | VXUS | EFA |
|---|---|---|
| 1Y ago | $13.79K (+37.9%) started 2025-06-18 | $12.82K (+28.2%) started 2025-06-18 |
| 5Y ago | $18.66K (+86.6%) started 2021-06-18 | $18.45K (+84.5%) started 2021-06-18 |
| 10Y ago | $36.52K (+265.2%) started 2016-06-20 | $35.73K (+257.3%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
| Metric | VXUS | EFA |
|---|---|---|
| Expense ratio | 0.05% | 0.32% |
| Total assets (AUM) | $652.3B | $77.42B |
| Dividend yield | 2.66% | 3.10% |
| Trailing P/E | 18.21 | 18.55 |
| Beta | 0.78 | 0.79 |
| 52-week change | 32.98% | 23.96% |
| Metric | VXUS | EFA |
|---|---|---|
| 1Y return | +32.98% | +23.96% |
| 6M return | +18.53% | +12.65% |
| 1M return | +5.27% | +4.06% |
| 1Y Sharpe ratio | 1.58 | 1.18 |
| Beta | 0.78 | 0.79 |
| Dividend yield | 2.66% | 3.10% |
| 5Y CAGR | +9.33% | +9.25% |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | VXUS | EFA |
|---|---|---|---|
| 1Y | Growth | +32.98% | +23.96% |
| CAGR | +33.01% | +23.98% | |
| Sharpe ratio | 1.58 | 1.18 | |
| Max drawdown | 11.27% | 11.42% | |
| Max daily drop | 3.73% | 3.11% | |
| Max wkly drop | 6.96% | 6.74% | |
| 5Y | Growth | +56.19% | +55.65% |
| CAGR | +9.33% | +9.25% | |
| Sharpe ratio | 0.36 | 0.35 | |
| Max drawdown | 29.44% | 29.53% | |
| Max daily drop | 6.11% | 6.60% | |
| Max wkly drop | 10.82% | 10.86% | |
| 10Y | Growth | +159.44% | +147.26% |
| CAGR | +10.01% | +9.48% | |
| Sharpe ratio | 0.38 | 0.35 | |
| Max drawdown | 35.97% | 34.19% | |
| Max daily drop | 11.13% | 10.99% | |
| Max wkly drop | 20.06% | 20.42% |
| Category | VXUS | EFA |
|---|---|---|
| Fund name | Vanguard Total International Stock Index Fund ETF Shares | iShares MSCI EAFE ETF |
| Type | ETF | ETF |
| Expense ratio | 0.05% | 0.32% |
| Total assets (AUM) | $652.3B | $77.42B |
| Dividend yield | 2.66% | 3.10% |
- →Complete ex-U.S. global market in one fund — VXUS's ~7,500 holdings across 46 countries provide exposure to every publicly traded market outside the U.S.; a single ETF captures international diversification benefits without needing separate developed and emerging market allocations
- →Emerging market inclusion adds growth exposure — VXUS includes China, India, Taiwan, Brazil, and other emerging markets that represent approximately 25% of global market cap outside the U.S.; emerging market companies may benefit from faster economic growth than developed markets
- →0.07% expense ratio among the lowest for international ETFs — Vanguard's cost leadership extends to international; comprehensive global exposure at 0.07% beats the category average meaningfully
- →Developed-market-only focus eliminates emerging market volatility — EFA's exclusion of emerging markets provides international diversification without the additional volatility, political risk, and governance uncertainty of EM exposure; suitable for investors who want stable international diversification
- →Deep liquidity as the most actively traded international ETF — EFA is one of the world's most liquid ETFs with hundreds of billions in daily trading volume; institutional traders and hedge funds use EFA extensively for developed market hedging and tactical allocation
- →MSCI EAFE is the universal developed market benchmark — most international equity institutional mandates, pension fund allocations, and performance benchmarks are measured against the MSCI EAFE; EFA provides pure benchmark exposure for institutional users
- →Currency risk — all international investments carry currency risk; VXUS's non-U.S. holdings generate returns in local currencies (yen, euro, yuan) that must be converted to USD; dollar strengthening reduces VXUS returns in USD terms
- →Emerging market volatility and governance risk — VXUS's emerging market component includes countries with higher political risk, currency instability, and corporate governance concerns (China's regulatory actions, Taiwan geopolitical risk, Brazil political volatility)
- →Higher tracking difference versus simpler domestic ETFs — managing 7,500+ international stocks across 46 countries with different market hours and settlement systems creates slightly more operational complexity than domestic ETFs
- →Excludes fast-growing emerging markets — by design, EFA misses China, India, Taiwan, and other growing emerging economies; investors using EFA for all international exposure may underweight the global economy's higher-growth markets
- →Higher expense ratio than VXUS at 0.32% — EFA's 0.32% expense ratio is meaningfully higher than VXUS's 0.07%; over 20+ year holding periods, this cost difference compounds significantly against EFA
- →Japan concentration risk — Japan is EFA's largest country weight at ~24%; Japan's decades of economic stagnation, demographic decline, and structural challenges mean heavy EFA exposure includes significant Japan exposure that may not reflect desired international diversification
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