# How iShares MSCI EAFE ETF (EFA) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/efa
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on EFA alone. It places EFA (iShares MSCI EAFE ETF) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where EFA stands in the market, and of the alternatives worth a closer look.

Period covered: EFA's full trading record, from August 2001 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **What you're buying:** EFA charges 0.32% a year; VEA (Vanguard FTSE Developed Markets ETF) tracks the same thing for 0.03%. A correlation of 0.99 with VEA over 5 years: effectively the same bet as the larger fund.
- **Right now:** Over the past 6 months, EFA rose 1.4% against 9.1% for the S&P 500 and 11.2% for the Nasdaq 100. Its similar funds split over the past 6 months: QUAL (iShares MSCI USA Quality Factor ETF) rose 9.7%, while EFG (iShares MSCI EAFE Growth ETF) fell 1.1%.
- **Fund or market?:** EFA rose 1.1% over the past 3 months, in line with the developed international equity ETF VEA (Vanguard FTSE Developed Markets ETF), which rose 1.0%. The S&P 500 rose 3.9%.
- **Long term:** EFA turned $10,000 into $23,900 over the past decade, against $42,100 in the S&P 500.
- **In a crash:** EFA has tended to fall harder than the S&P 500 in crashes, about 1.2 times the index's decline.
- **Diversification:** EFA is some diversification, but not a hedge: a correlation of 0.79 with the S&P 500 over 5 years and 0.79 with the total US market, more closely than 60% of ETFs with at least $100 million in assets. When the S&P 500 had a down month, EFA usually fell with it (17 of 22 months).
- **Better options**
  - **Popular alternatives:** DBEF (Xtrackers MSCI EAFE Hedged Equity ETF) and HFXI (NYLI FTSE International Equity Currency Neutral ETF) earned more than EFA with less volatility over the past 5 years. DBEF returned 13.1% a year at 13.8% volatility, against 8.6% a year at 16.6%.
  - **Nearby categories and themes:** LVHI (Franklin International Low Volatility High Dividend Index ETF, international equity) earned more than EFA with less volatility over the past 5 years: 17.0% a year at 11.1% volatility, against 8.6% a year at 16.6%.
  - **Whole market:** 96 of the 3,633 stocks and funds worth at least $500 million earned more than EFA with less volatility over the past 5 years, among them VTV (Vanguard Morningstar Value ETF), VIG (Vanguard Dividend Appreciation ETF) and SCHD (Schwab U.S. Dividend Equity ETF).

## How much would $10,000 in EFA have grown?

This chart tracks a hypothetical $10,000 investment in EFA over the past 19 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of EFA over the same span and EFA's popular alternatives, among those that traded for the entire period.

- $10,000 invested in EFA at the end of September 2007 would have grown to $22,507 by September 2026, less than the $70,725 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of EFA, and VTI finished highest, at $69,591.

## EFA at a glance

This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- EFA's deepest decline since it began trading in 2001 was 61.0%, from October 2007 to March 2009. It took about five years from the low to climb back to its old high.
- Over 24 full calendar years, EFA's best was 2003, when it returned 38.7%, and its worst was 2008, when it lost 41.0%. It lost money in seven of those years.
- EFA is 4.7% below its all-time high.

- Type: ETF, International (Asset Management - Global)
- Trading since: August 17, 2001
- Assets: $77B
- Expense ratio: 0.32%
- Volatility (5 years): 16.6%; Sharpe ratio: 0.58
- Worst decline ever: −61.0%, from October 31, 2007 to March 9, 2009; back at its high by June 6, 2014

| Period | EFA total return |
| --- | --- |
| 1 month | −2.3% |
| 3 months | +1.1% |
| 6 months | +1.4% |
| year to date | +8.6% |
| 1 year | +12.5% |
| 3 years | +71.2% |
| 5 years | +51.0% |
| 10 years | +139% |

## EFA against the whole market

Where EFA ranks among every stock and fund, and what across the market has done better.

### How does EFA rank among all ETFs?

This section ranks EFA on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history.

- EFA lands in the broad middle of the market on every measure here. EFA's worst decline of the past 10 years ranks in the top 32% of the 951 ETFs with at least $100 million in assets, where the top fell the least.

| Measure | EFA | Rank |
| --- | --- | --- |
| 1-year return | +12.5% | 1,043 of 2,485 (top 42%) |
| 3-year return | +71.2% | 759 of 1,949 (top 39%) |
| 5-year return | +51.0% | 656 of 1,560 (top 43%) |
| 10-year return | +139% | 522 of 958 (top 55%) |
| Volatility, 5 years | 16.6% | 773 of 1,560 (top 50%) |
| Sharpe ratio, 5 years | 0.58 | 757 of 1,560 (top 49%) |
| Worst decline, past 10 years | −34.2% | 309 of 951 (top 33%) |

### What has beaten EFA on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 96 ETFs worth at least $500 million sit in the green region: each earned more than EFA over the past 5 years with smaller price swings. That is 3% of the 3,633 screened.
- Among those with at least half EFA's swings, LVHI has the best return for its risk: 17.0% a year at 11.1% volatility, 33% less than EFA's 16.6%, and a Sharpe ratio (return above cash per unit of volatility) of 1.48 against 0.58 for EFA.
- Among EFA's popular alternatives, HEFA, DBEF and HFXI are in the region. HEFA earned 13.3% a year against 8.6% a year for EFA, at 13.8% volatility, 17% less than EFA's 16.6%.

### Is there a better investment than EFA?

The table below lists investments that beat EFA over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio.

- Among EFA's popular alternatives, DBEF and HFXI earned more than EFA with less volatility over the past 5 years. DBEF returned 13.1% a year at 13.8% volatility, against 8.6% a year at 16.6%.
- VEA tracks the same thing for 0.03% a year against EFA's 0.32%, and has kept pace over the past decade: about $290 less in fees on $10,000 over 10 years.
- Looking beyond its popular alternatives, LVHI (international equity) earned more than EFA with less volatility over the past 5 years: 17.0% a year at 11.1% volatility, against 8.6% a year at 16.6%.

The 15 strongest of 96 investments that beat EFA over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with EFA | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| EFA: iShares MSCI EAFE ETF (this page) |  | +8.6% | 16.6% | 0.58 | −34.2% | +139% |  |  |
| FTLS: First Trust Long/Short Equity ETF | Broad Market | +10.2% | 10.4% | 0.99 | −20.6% | +158% | 0.72 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| PTNQ: Pacer Trendpilot 100 ETF | Technology | +9.7% | 14.1% | 0.73 | −28.1% | +305% | 0.47 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| QDPL: Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF | Dividend & Income | +11.8% | 15.0% | 0.82 | −22.6% | — | 0.77 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| SIXA: ETC 6 Meridian Mega Cap Equity ETF | Broad Market | +12.8% | 12.7% | 1.01 | −18.4% | — | 0.84 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [VTV](https://easycompare.io/research/vtv): Vanguard Morningstar Value ETF | US Large-Cap Value | +12.1% | 13.7% | 0.90 | −36.8% | +235% | 0.83 | Higher return, lower volatility; Higher return in most periods |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | International Equity | +17.0% | 11.1% | 1.48 | −32.4% | +194% | 0.80 | Higher return, lower volatility; Higher return in most periods |
| [VIG](https://easycompare.io/research/vig): Vanguard Dividend Appreciation ETF | US Dividend Equity | +10.4% | 14.1% | 0.78 | −31.7% | +258% | 0.84 | Higher return, lower volatility; Higher return in most periods |
| [SCHD](https://easycompare.io/research/schd): Schwab U.S. Dividend Equity ETF | US Dividend Equity | +9.7% | 14.3% | 0.72 | −33.4% | +252% | 0.75 | Higher return, lower volatility; Higher return in most periods |
| PVAL: Putnam Focused Large Cap Value ETF | US Large-Cap Value | +16.1% | 15.1% | 1.07 | −41.3% | — | 0.81 | Higher return, lower volatility; Higher return in most periods |
| HDV: iShares Core High Dividend ETF | US Dividend Equity | +12.9% | 13.0% | 1.00 | −37.0% | +172% | 0.70 | Higher return, lower volatility; Higher return in most periods |
| RWL: Invesco S&P 500 Revenue ETF | US Large-Cap Equity | +13.7% | 14.4% | 0.97 | −36.1% | +287% | 0.83 | Higher return, lower volatility; Higher return in most periods |
| PJUL: Innovator U.S. Equity Power Buffer ETF | Broad Market | +10.5% | 8.6% | 1.20 | −18.2% | — | 0.76 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| FDVV: Fidelity High Dividend ETF | US Dividend Equity | +13.2% | 14.6% | 0.92 | −40.2% | +253% | 0.84 | Higher return, lower volatility; Higher return in most periods |
| FJAN: FT Vest U.S. Equity Buffer ETF - January | Multi-Asset | +11.1% | 10.5% | 1.05 | −13.6% | — | 0.77 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| FDL: First Trust Morningstar Dividend Leaders Index Fund | US Dividend Equity | +13.9% | 14.4% | 0.98 | −41.4% | +199% | 0.70 | Higher return, lower volatility; Higher return in most periods |

## EFA against its popular alternatives

The investments people most often weigh against EFA, compared period by period and year by year.

### How do EFA's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- Nine of the 25 popular alternatives, led by FNDF, EFV and HEFA, were both more rewarding and calmer than EFA over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, EFA returned 8.6% a year, less than the S&P 500's 12.7%, with lower volatility (16.6% against 17.1%).

### Has EFA consistently beaten its popular alternatives?

This section compares EFA with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- 13 of the 28 popular alternatives, led by VTI, QUAL and HEFA, outperformed EFA in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- VTI, QUAL and HEFA outperformed EFA in every long-term period and in all but one short-term period, the most consistent record in the group.
- HEFA, DBEF and HFXI earned more for the risk they took than EFA (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of EFA | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| EFA: iShares MSCI EAFE ETF (this page) | +12.5% | +71.2% | +51.0% | +139% |  |  | 0.58 |
| [VTI](https://easycompare.io/research/vti): Vanguard Morningstar Total Stock Market ETF | +15.2% | +87.9% | +72.6% | +302% | 5/5 short-term, 3/3 long-term | all-weather | 0.71 |
| [QUAL](https://easycompare.io/research/qual): iShares MSCI USA Quality Factor ETF | +16.4% | +76.9% | +71.5% | +293% | 5/5 short-term, 3/3 long-term | all-weather | 0.71 |
| HEFA: iShares Currency Hedged MSCI EAFE ETF | +17.8% | +75.2% | +86.4% | +210% | 5/5 short-term, 3/3 long-term | all-weather | 0.97 |
| IDHQ: Invesco S&P International Developed Quality ETF | +29.6% | +86.9% | +61.1% | +183% | 5/5 short-term, 3/3 long-term | all-weather | 0.63 |
| DBEF: Xtrackers MSCI EAFE Hedged Equity ETF | +17.7% | +74.6% | +85.0% | +206% | 4/5 short-term, 3/3 long-term | all-weather | 0.96 |
| FNDF: Schwab Fundamental International Large Company Index ETF | +27.2% | +95.8% | +89.2% | +194% | 4/5 short-term, 3/3 long-term | all-weather | 0.87 |
| PXF: Invesco RAFI Developed Markets ex-U.S. ETF | +26.9% | +101% | +90.0% | +193% | 4/5 short-term, 3/3 long-term | all-weather | 0.86 |
| EFV: iShares MSCI EAFE Value ETF | +21.4% | +92.4% | +89.0% | +157% | 4/5 short-term, 3/3 long-term | all-weather | 0.88 |
| HFXI: NYLI FTSE International Equity Currency Neutral ETF | +17.8% | +78.1% | +71.5% | +180% | 3/5 short-term, 3/3 long-term | consistent | 0.79 |
| [SPDW](https://easycompare.io/research/spdw): State Street SPDR Portfolio Developed World ex-US ETF | +17.0% | +81.6% | +54.9% | +153% | 3/5 short-term, 3/3 long-term | consistent | 0.61 |
| AVDV: Avantis International Small Cap Value ETF | +24.2% | +118% | +91.4% | — | 4/5 short-term, 2/3 long-term | consistent | 0.84 |
| DFAI: Dimensional - International Core Equity Market ETF | +15.8% | +78.5% | +59.0% | — | 4/5 short-term, 2/3 long-term | consistent | 0.66 |
| AVDE: Avantis International Equity ETF | +16.4% | +83.7% | +61.8% | — | 3/5 short-term, 2/3 long-term | consistent | 0.67 |
| [SCHF](https://easycompare.io/research/schf): Schwab International Equity ETF | +17.3% | +80.9% | +57.7% | +155% | 2/5 short-term, 3/3 long-term |  | 0.63 |
| [VEA](https://easycompare.io/research/vea): Vanguard FTSE Developed Markets ETF | +17.0% | +81.0% | +55.9% | +153% | 2/5 short-term, 3/3 long-term |  | 0.61 |
| IQLT: iShares MSCI Intl Quality Factor ETF | +14.7% | +65.9% | +45.4% | +155% | 5/5 short-term, 1/3 long-term |  | 0.54 |
| JPIN: JPMorgan Diversified Return International Equity ETF | +15.6% | +74.6% | +52.0% | +113% | 4/5 short-term, 1/3 long-term |  | 0.65 |
| DFIC: Dimensional - International Core Equity 2 ETF | +17.1% | +82.4% | — | — | 3/5 short-term, 1/3 long-term |  | — |
| [VXUS](https://easycompare.io/research/vxus): Vanguard Total International Stock ETF | +14.6% | +77.2% | +48.6% | +140% | 2/5 short-term, 1/3 long-term |  | 0.57 |
| DFAE: Dimensional - Emerging Core Equity Market ETF | +18.1% | +83.5% | +49.3% | — | 2/5 short-term, 1/3 long-term |  | 0.52 |
| IDEV: iShares Core MSCI International Developed Markets ETF | +13.8% | +75.7% | +51.5% | — | 2/5 short-term, 1/3 long-term |  | 0.59 |
| DWM: WisdomTree International Equity Fund | +12.1% | +72.7% | +63.5% | +120% | 1/5 short-term, 1/3 long-term |  | 0.72 |
| EFAV: iShares MSCI EAFE Min Vol Factor ETF | +15.0% | +64.8% | +44.4% | +97.7% | 5/5 short-term, 0/3 long-term |  | 0.68 |
| SCZ: iShares MSCI EAFE Small-Cap ETF | +12.3% | +72.8% | +27.1% | +114% | 1/5 short-term, 0/3 long-term |  | 0.37 |
| EFG: iShares MSCI EAFE Growth ETF | +4.1% | +51.3% | +18.5% | +111% | 1/5 short-term, 0/3 long-term |  | 0.28 |
| [BNDX](https://easycompare.io/research/bndx): Vanguard Total International Bond ETF | −1.4% | +13.4% | +0.8% | +15.0% | 1/5 short-term, 0/3 long-term |  | 0.06 |
| [IEFA](https://easycompare.io/research/iefa): iShares Core MSCI EAFE ETF | +12.8% | +72.4% | +49.0% | +140% | 0/5 short-term, 0/3 long-term |  | 0.56 |
| [VWO](https://easycompare.io/research/vwo): Vanguard FTSE Emerging Markets ETF | +8.3% | +67.2% | +29.1% | +102% | 0/5 short-term, 0/3 long-term |  | 0.38 |

### How did EFA do year by year?

This table shows each investment's total return in every full calendar year since 2002, along with where EFA ranked among its popular alternatives each year.

- Among its popular alternatives, AVDE came out ahead of EFA most often, in five of the six years both traded.
- EFA finished ahead of the S&P 500 in ten of its 24 full calendar years.
- Ranked against its popular alternatives each year, EFA finished in the top quarter in one of 20 years and in the bottom quarter in one. In 2025, it ranked 16 of 27.

| Year | EFA | SPY |
| --- | --- | --- |
| 2025 | +31.6% | +17.7% |
| 2024 | +3.5% | +24.9% |
| 2023 | +18.4% | +26.2% |
| 2022 | −14.4% | −18.2% |
| 2021 | +11.5% | +28.7% |
| 2020 | +7.6% | +18.3% |
| 2019 | +22.0% | +31.2% |
| 2018 | −13.8% | −4.6% |
| 2017 | +25.1% | +21.7% |
| 2016 | +1.4% | +12.0% |

## Risk and diversification

How EFA has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were EFA's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all five of EFA's worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: EFA fell 23.1% from July 2014 to February 2016, while the S&P 500 slipped only 4.9%.
- The slowest recovery came after EFA fell 61.0% from October 2007 to March 2009; it did not regain that peak until June 2014, five years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −61.0% | October 31, 2007 | March 9, 2009 | June 6, 2014 | −54.7% | 2008 financial crisis |
| −34.2% | January 26, 2018 | March 23, 2020 | November 16, 2020 | −18.8% | late-2018 sell-off |
| −31.4% | August 24, 2001 | March 12, 2003 | October 14, 2003 | −30.3% | dot-com bust |
| −29.5% | September 7, 2021 | September 27, 2022 | February 20, 2024 | −18.0% | 2022 bear market |
| −23.1% | July 3, 2014 | February 11, 2016 | May 4, 2017 | −4.9% | 2015 China and oil sell-off |

### How did EFA do in stock market crashes?

This section measures how far EFA, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- Among its popular alternatives, EFAV held up best, falling less than EFA in all six crashes they both traded through.
- EFA fell less than the S&P 500 in five of the nine crashes it has traded through. The clearest case was the late-2018 sell-off, when EFA fell 16.3% and the S&P 500 fell 19.3%.

| Crash | Dates | EFA fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | not trading | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −61.0% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −0.2% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −22.7% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −20.7% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −5.9% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −16.3% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −32.6% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −28.7% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −2.5% | −3.4% |

### How closely does EFA move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- 12 of the 20 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than EFA's 0.83, led by HEFA, VTI and QUAL.
- HEFA took just 62% of the S&P 500's losses, against 92% for EFA, while still keeping 71% of its gains.
- Over the past 10 years, EFA captured 76% of the S&P 500's gains in rising months and 92% of its losses in falling months, with a beta of 0.81. Its share of the market's losses was larger than its share of the gains.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| EFA: iShares MSCI EAFE ETF (this page) | 76.0% | 92.0% | 0.81 |
| [VTI](https://easycompare.io/research/vti): Vanguard Morningstar Total Stock Market ETF | 100% | 103% | 1.02 |
| [QUAL](https://easycompare.io/research/qual): iShares MSCI USA Quality Factor ETF | 98.0% | 102% | 1.00 |
| HEFA: iShares Currency Hedged MSCI EAFE ETF | 71.0% | 62.0% | 0.65 |
| IDHQ: Invesco S&P International Developed Quality ETF | 82.0% | 94.0% | 0.85 |
| FNDF: Schwab Fundamental International Large Company Index ETF | 81.0% | 87.0% | 0.80 |
| PXF: Invesco RAFI Developed Markets ex-U.S. ETF | 83.0% | 90.0% | 0.83 |
| EFV: iShares MSCI EAFE Value ETF | 75.0% | 84.0% | 0.76 |
| HFXI: NYLI FTSE International Equity Currency Neutral ETF | 76.0% | 79.0% | 0.75 |
| [SPDW](https://easycompare.io/research/spdw): State Street SPDR Portfolio Developed World ex-US ETF | 80.0% | 95.0% | 0.86 |
| [SCHF](https://easycompare.io/research/schf): Schwab International Equity ETF | 79.0% | 93.0% | 0.84 |
| IQLT: iShares MSCI Intl Quality Factor ETF | 79.0% | 95.0% | 0.82 |
| JPIN: JPMorgan Diversified Return International Equity ETF | 69.0% | 87.0% | 0.74 |
| [VXUS](https://easycompare.io/research/vxus): Vanguard Total International Stock ETF | 76.0% | 91.0% | 0.82 |
| DWM: WisdomTree International Equity Fund | 70.0% | 85.0% | 0.74 |
| EFAV: iShares MSCI EAFE Min Vol Factor ETF | 52.0% | 62.0% | 0.52 |
| SCZ: iShares MSCI EAFE Small-Cap ETF | 81.0% | 107% | 0.91 |
| EFG: iShares MSCI EAFE Growth ETF | 78.0% | 104% | 0.87 |
| [BNDX](https://easycompare.io/research/bndx): Vanguard Total International Bond ETF | 11.0% | 13.0% | 0.14 |
| [IEFA](https://easycompare.io/research/iefa): iShares Core MSCI EAFE ETF | 77.0% | 94.0% | 0.82 |
| [VWO](https://easycompare.io/research/vwo): Vanguard FTSE Emerging Markets ETF | 63.0% | 75.0% | 0.69 |

### What diversifies EFA?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in EFA into DBMF would have cut the portfolio's volatility by 24% over the past 5 years and raised its annual return (+9.3% for EFA alone, +9.9% for the mix).
- Among large ETFs, GLD, XLE and AMLP have moved largely independently of EFA over the past 5 years, with correlations of 0.44 or lower, and each still earned a positive 5-year return.
- CAH made money in four of the seven calendar years in which EFA lost money.

| Investment | Correlation with EFA | 5Y return | Volatility | Sharpe | Rose in EFA's 7 down years |
| --- | --- | --- | --- | --- | --- |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.44 | +126% | 18.9% | 0.96 | 2 of 7 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.31 | +177% | 25.5% | 0.93 | 2 of 7 |
| AMLP: Alerian MLP ETF | 0.38 | +111% | 18.9% | 0.89 | 3 of 7 |
| PTLC: Pacer Trendpilot US Large Cap ETF | 0.49 | +57.4% | 11.8% | 0.83 | 1 of 7 |
| DBMF: iMGP DBi Managed Futures Strategy ETF | -0.34 | +59.7% | 12.4% | 0.82 | 1 of 7 |
| DBA: Invesco DB Agriculture Fund | 0.22 | +66.4% | 13.8% | 0.81 | 2 of 7 |
| USO: United States Oil Fund, LP | -0.09 | +176% | 37.7% | 0.73 | 1 of 7 |
| PTNQ: Pacer Trendpilot 100 ETF | 0.47 | +58.8% | 14.1% | 0.73 | 1 of 7 |

## Common questions

### What was EFA's worst drawdown?

EFA's deepest decline since it began trading in 2001 was 61.0%, from October 2007 to March 2009. It took about five years from the low to climb back to its old high.

### What were EFA's best and worst years?

Over 24 full calendar years, EFA's best year was 2003, when it returned 38.7%. Its worst was 2008, with a return of -41.0%.

### Is there a better investment than EFA?

Among EFA's popular alternatives, DBEF and HFXI earned more than EFA with less volatility over the past 5 years. DBEF returned 13.1% a year at 13.8% volatility, against 8.6% a year at 16.6%. VEA tracks the same thing for 0.03% a year against EFA's 0.32%, and has kept pace over the past decade: about $290 less in fees on $10,000 over 10 years.

### Is EFA more volatile than the S&P 500?

No. EFA's volatility over the past 5 years was 16.6%, 1.0 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, EFA's return lands within 16.6% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is EFA's Sharpe ratio?

EFA's Sharpe ratio over the past 5 years was 0.58, against 0.79 for the S&P 500, so EFA earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is EFA with the S&P 500?

Over the past 5 years, EFA's monthly returns had a correlation of 0.79 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against EFA instead: the lower it is, the more that option would diversify a EFA holding.

### What are the best alternatives to EFA?

Of the 28 popular alternatives we compared, 13 outperformed EFA in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: VTI, QUAL and HEFA.

### Did EFA outperform the S&P 500?

EFA finished ahead of the S&P 500 (SPY) in ten of 24 full calendar years. In 2025, it returned +31.5%, against +17.7% for the index.

### How did EFA do in stock market crashes?

EFA fell less than the S&P 500 (SPY) in five of the nine major crashes it has traded through, and further in four. The clearest case was the late-2018 sell-off, when EFA fell 16.3% and the S&P 500 fell 19.3%.

### What diversifies EFA?

These had a low correlation with EFA over the past 5 years and still earned a positive 5-year return: among large ETFs, GLD (correlation 0.44), XLE (correlation 0.31) and AMLP (correlation 0.38); among large stocks, CAH (correlation 0.32), CLS (correlation 0.24) and FIX (correlation 0.37). A correlation near zero means the two have moved largely independently.

## More research

- [Vanguard Morningstar Total Stock Market ETF (VTI) Performance, Alternatives and Market Rank](https://easycompare.io/research/vti)
- [iShares MSCI USA Quality Factor ETF (QUAL) Performance, Alternatives and Market Rank](https://easycompare.io/research/qual)
- [State Street SPDR Portfolio Developed World ex-US ETF (SPDW) Performance, Alternatives and Market Rank](https://easycompare.io/research/spdw)
- [Schwab International Equity ETF (SCHF) Performance, Alternatives and Market Rank](https://easycompare.io/research/schf)
- [Vanguard FTSE Developed Markets ETF (VEA) Performance, Alternatives and Market Rank](https://easycompare.io/research/vea)
- [Vanguard Total International Stock ETF (VXUS) Performance, Alternatives and Market Rank](https://easycompare.io/research/vxus)
- [Vanguard Total International Bond ETF (BNDX) Performance, Alternatives and Market Rank](https://easycompare.io/research/bndx)
- [iShares Core MSCI EAFE ETF (IEFA) Performance, Alternatives and Market Rank](https://easycompare.io/research/iefa)
- [Vanguard FTSE Emerging Markets ETF (VWO) Performance, Alternatives and Market Rank](https://easycompare.io/research/vwo)
- [Schwab U.S. Dividend Equity ETF (SCHD) Performance, Alternatives and Market Rank](https://easycompare.io/research/schd)
- [NVIDIA (NVDA) Performance, Alternatives and Market Rank](https://easycompare.io/research/nvda)
- [Apple (AAPL) Performance, Alternatives and Market Rank](https://easycompare.io/research/aapl)

## Explore further

- Full page with charts: https://easycompare.io/research/efa
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against EFA live: https://betterthanspy.com/?b=EFA&utm_source=easycompare&utm_medium=research