EFV vs VFISX Fund Comparison

A comparison between EFV and VFISX based on their expense ratio, growth, holdings and how well they match their benchmark performance.

Group Created with Sketch.

Minafi's Take on EFV vs VFISX

Here's an in depth look at the differences between iShares MSCI EAFE Value ETF ($EFV) and Vanguard Short-Term Treasury Fund Investor Shares ($VFISX).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

75% FI Score
  • efv
  • ETF
  • International Stocks
  • Large Value

iShares MSCI EAFE Value ETF

Expenses: 0.39% (Better than 1% of similar funds)

This is an OK choice for a Large Value International Stocks fund. See why »

84% FI Score
  • vfisx
  • Mutual Fund
  • Bond
  • Government Bond

Vanguard Short-Term Treasury Fund Investor Shares

Expenses: 0.20% (Better than 1% of similar funds)

This is an OK choice for a Government Bond Bond fund. See why »

$EFV is classified as an ETF while $VFISX is classified as a Mutual Fund. Even though one of these is a mutual fund and the other is an ETF, that doesn't matter too much for their holdings. Both ETFs and mutual funds are just containers to hold lots of investments inside of them.

The biggest differences between these two is where they may be offered. ETFs are more widely availble from a larger number of investment apps and websites. Mutual funds, on the other hand, are generally offered by the platform they're issued by (Fidelity funds on Fidelity, Vanguard funds on Vanguard). Usually 401(k)'s will offer both ETFs and Mutual Funds. If you're investing outside of a 401(k), I'd recommend you verify the fees associated with ETF and mutual fund transactions. Some platforms charge an additional fee to purchase a mutual fund.

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

EFV VFISX
Market Score 9.5 /10 9.2 /10
Category Score 8.0 /10 8.0 /10
Total 17.5 17.2

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

Winner: $EFV

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, EFV has an expense ratio of 0.39% while VFISX has an expense ratio of 0.20%.

Winner: $VFISX

Fund Size Comparison

Both EFV and VFISX have a similar number of assets under management. EFV has 4.98 Billion in assets under management, while VFISX has 9.53 Billion.

Minafi categorizes both of these funds as large funds. Fund size is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

Winner: tie

Which Should You Choose? EFV or VFISX?

Comparing these two funds isn't an apples to apples comparison. EFV is a International Stocks Large Value fund, while VFISX is a Bond Government Bond fund.

If you're aiming to build a diversified, low-fee, tax-optimized portfolio you likely won't be choosing between these two funds since they're different enough.

Running both of these funds through Minafi's FI Score algorithm, gives EFV a score of 75 and VFISX a score of 84.

Winner: Neither, I'd research more funds if you're looking to invest for retirement.

$EFV

iShares MSCI EAFE Value ETF

75

Read More
Ratings
Rating Type Rating
Diversification Score 4 /10
Expense Ratio Score 9 /10
Expense Rating 6 /10
Market Score 10 /10
Category Score 8 /10
Overview
Overview Details
Fund Type ETF
Inception Date Aug-1-2005
Exchange BATS
Expense Ratio 0.390%
Net Assets 4.98 Billion
Yield 5.92%
Holdings
Description Info
Market International Stocks
Category Large Value
Sectors
  • Basic Materials 8.82%
  • Communication Services 6.68%
  • Consumer Cyclicals 10.22%
  • Consumer Defensive 6.19%
  • Energy 7.12%
  • Financial Services 25.08%
  • Healthcare 8.52%
  • Industrials 14.07%
  • Real Estate 4.46%
  • Technology 2.18%
  • Utilities 6.66%
Regions
  • Africa/Middle East 0.58%
  • Asia Developed 3.70%
  • Asia Emerging 0.36%
  • Australasia 7.53%
  • Europe Developed 43.30%
  • Japan 25.09%
  • North America 0.97%
  • United Kingdom 18.48%

$VFISX

Vanguard Short-Term Treasury Fund Investor Shares

84

Read More
Ratings
Rating Type Rating
Expense Ratio Score 8 /10
Expense Rating 8 /10
Market Score 9 /10
Category Score 8 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Oct-28-1991
Exchange NMFQS
Expense Ratio 0.200%
Net Assets 9.53 Billion
Yield 1.75%
Holdings
Description Info
Market Bond
Category Government Bond
Sectors
  • Agency MBS ARM 0.00%
  • Agency MBS CMO 4.79%
  • Agency MBS Pass-Through 3.17%
  • Asset-Backed 0.00%
  • Cash & Equivalents 3.11%
  • Commercial MBS 0.00%
  • Corporate 0.00%
  • Covered Bond 0.00%
  • Government 88.93%
  • Municipal 0.00%
  • Non-Agency Residential MBS 0.00%
  • Non-U.S. Government 0.00%
  • Other 0.00%
  • Other Government Related 0.00%
  • Securitized 7.96%
  • U.S. Agency 0.43%
  • U.S. Treasury 64.17%
  • U.S. Treasury Inflation-Protected 24.33%

Adam says: Learn how to confidently invest for retirement!

Join the Minafi Investor Bootcamp to see how.

This 10-course bootcamp starts at only $10 for everything!

Minafi - The intersection of FI, minimalism & mindfulness.

Don't miss out on new posts, courses, interactive articles and more!

Join & Get Your First Course Free

© 2024   Adam Fortuna

Site Map
Triangle Graduation Cap Angle Down Book regular Phone laptop regular fire regular fire regular search regular Acorn duotone Seedling duotone thumbs down duo thumbs up duo