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

> Source: EasyCompare research, https://easycompare.io/research/iefa
> 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 IEFA alone. It places IEFA (iShares Core 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 IEFA stands in the market, and of the alternatives worth a closer look.

Period covered: IEFA's full trading record, from October 2012 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:** A correlation of 0.99 with VEA (Vanguard FTSE Developed Markets ETF) over 5 years: effectively the same bet as the larger fund.
- **Right now:** Over the past 6 months, IEFA rose 1.3% against 9.1% for the S&P 500 and 11.2% for the Nasdaq 100. On the flip side, IEFA sits 4.6% below its record high, and the S&P 500 is similarly close to its own.
- **Fund or market?:** IEFA rose 1.2% over the past 3 months, 2.7 points behind the S&P 500, which rose 3.9%.
- **Long term:** IEFA turned $10,000 into $24,000 over the past decade, against $42,100 in the S&P 500.
- **In a crash:** IEFA has tended to fall harder than the S&P 500 in crashes, about 1.2 times the index's decline.
- **Diversification:** IEFA 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 61% of ETFs with at least $100 million in assets. IEFA fell in 17 of the 22 months the S&P 500 fell over the past 5 years: it usually fell with it.
- **Better options**
  - **Popular alternatives:** HEFA (iShares Currency Hedged MSCI EAFE ETF) and DWM (WisdomTree International Equity Fund) earned more than IEFA with less volatility over the past 5 years. HEFA returned 13.3% a year at 13.8% volatility, against 8.3% a year at 16.6%.
  - **Nearby categories and themes:** LVHI (Franklin International Low Volatility High Dividend Index ETF, international equity) earned more than IEFA with less volatility over the past 5 years: 17.0% a year at 11.1% volatility, against 8.3% a year at 16.6%.
  - **Whole market:** 110 of the 3,633 stocks and funds worth at least $500 million earned more than IEFA 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 IEFA have grown?

This chart tracks a hypothetical $10,000 investment in IEFA over the past 13 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of IEFA over the same span and IEFA's popular alternatives, among those that traded for the entire period.

- $10,000 invested in IEFA at the end of September 2013 would have grown to $24,620 by September 2026, less than the $56,474 it would have become in SPY, an S&P 500 fund.
- Six of the eight other investments on the chart ended ahead of IEFA, and VTI finished highest, at $53,009.

## IEFA 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.

- IEFA's deepest decline since it began trading in 2012 was 34.8%, from January 2018 to March 2020. It took eight months from the low to climb back to its old high.
- Over 13 full calendar years, IEFA's best was 2025, when it returned 32.1%, and its worst was 2022, when it lost 15.3%. It lost money in three of those years.
- IEFA is 4.6% below its all-time high.

- Type: ETF, International (Asset Management)
- Trading since: October 24, 2012
- Assets: $190B
- Expense ratio: 0.07%
- Volatility (5 years): 16.6%; Sharpe ratio: 0.56
- Worst decline ever: −34.8%, from January 26, 2018 to March 23, 2020; back at its high by November 16, 2020

| Period | IEFA total return |
| --- | --- |
| 1 month | −2.4% |
| 3 months | +1.2% |
| 6 months | +1.3% |
| year to date | +8.8% |
| 1 year | +12.8% |
| 3 years | +72.4% |
| 5 years | +49.0% |
| 10 years | +140% |

## IEFA against the whole market

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

### How does IEFA rank among all ETFs?

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

- IEFA lands in the broad middle of the market on every measure here. IEFA's worst decline of the past 10 years ranks in the top 35% of the 951 ETFs with at least $100 million in assets, where the top fell the least.

| Measure | IEFA | Rank |
| --- | --- | --- |
| 1-year return | +12.8% | 1,028 of 2,485 (top 42%) |
| 3-year return | +72.4% | 733 of 1,949 (top 38%) |
| 5-year return | +49.0% | 696 of 1,560 (top 45%) |
| 10-year return | +140% | 511 of 958 (top 54%) |
| Volatility, 5 years | 16.6% | 778 of 1,560 (top 50%) |
| Sharpe ratio, 5 years | 0.56 | 791 of 1,560 (top 51%) |
| Worst decline, past 10 years | −34.8% | 335 of 951 (top 36%) |

### What has beaten IEFA 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).

- 110 ETFs worth at least $500 million sit in the green region: each earned more than IEFA over the past 5 years with smaller price swings. That is 3% of the 3,633 screened.
- Among those with at least half IEFA's swings, LVHI has the best return for its risk: 17.0% a year at 11.1% volatility, 33% less than IEFA's 16.6%, and a Sharpe ratio (return above cash per unit of volatility) of 1.48 against 0.56 for IEFA.
- Among IEFA's popular alternatives, HEFA and DWM are in the region. HEFA earned 13.3% a year against 8.3% a year for IEFA, at 13.8% volatility, 17% less than IEFA's 16.6%.

### Is there a better investment than IEFA?

The table below lists investments that beat IEFA 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 IEFA's popular alternatives, HEFA and DWM earned more than IEFA with less volatility over the past 5 years. HEFA returned 13.3% a year at 13.8% volatility, against 8.3% a year at 16.6%.
- VEA tracks the same thing for 0.03% a year against IEFA's 0.07%, and has kept pace over the past decade: about $40 less in fees on $10,000 over 10 years.
- Looking beyond its popular alternatives, LVHI (international equity) earned more than IEFA with less volatility over the past 5 years: 17.0% a year at 11.1% volatility, against 8.3% a year at 16.6%.

The 15 strongest of 110 investments that beat IEFA 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 IEFA | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| IEFA: iShares Core MSCI EAFE ETF (this page) |  | +8.3% | 16.6% | 0.56 | −34.8% | +140% |  |  |
| 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 |
| PTLC: Pacer Trendpilot US Large Cap ETF | Broad Market | +9.5% | 11.8% | 0.83 | −26.6% | +188% | 0.49 | 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 |
| DIVI: Franklin International Core Dividend Tilt Index ETF | International | +13.4% | 15.5% | 0.89 | −27.7% | +184% | 0.97 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| QDPL: Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF | Dividend & Income | +11.8% | 15.0% | 0.82 | −22.6% | — | 0.78 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| PPH: VanEck Pharmaceutical ETF | Healthcare | +11.6% | 15.8% | 0.78 | −29.7% | +153% | 0.67 | 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 |
| VOE: Vanguard Morningstar Mid-Cap Value ETF | US Mid-Cap Equity | +9.4% | 15.8% | 0.65 | −43.2% | +182% | 0.83 | 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 |

## IEFA against its popular alternatives

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

### How do IEFA'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.

- Ten of the 20 popular alternatives, led by EFV, HEFA and DWM, were both more rewarding and calmer than IEFA over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, IEFA returned 8.3% a year, less than the S&P 500's 12.7%, with lower volatility (16.6% against 17.1%).

### Has IEFA consistently beaten its popular alternatives?

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

- Eight of the 26 popular alternatives, led by VTI, HEFA and EFV, outperformed IEFA in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- VTI, HEFA and EFV outperformed IEFA in every long-term period and in all but one short-term period, the most consistent record in the group.
- HEFA, DFAI and DFAX earned more for the risk they took than IEFA (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 IEFA | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| IEFA: iShares Core MSCI EAFE ETF (this page) | +12.8% | +72.4% | +49.0% | +140% |  |  | 0.56 |
| [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 |
| 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 |
| 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 |
| [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 |
| VPL: Vanguard FTSE Pacific ETF | +24.0% | +87.4% | +57.3% | +141% | 4/5 short-term, 2/3 long-term | consistent | 0.58 |
| 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 |
| DFAX: Dimensional World ex U.S. Core Equity 2 ETF | +17.9% | +82.8% | +59.3% | — | 3/5 short-term, 2/3 long-term | consistent | 0.66 |
| [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 |
| [VEU](https://easycompare.io/research/veu): Vanguard FTSE All-World ex-US ETF | +15.1% | +78.3% | +50.7% | +143% | 2/5 short-term, 2/3 long-term |  | 0.58 |
| IDEV: iShares Core MSCI International Developed Markets ETF | +13.8% | +75.7% | +51.5% | — | 1/5 short-term, 2/3 long-term |  | 0.59 |
| 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 |  | — |
| [IXUS](https://easycompare.io/research/ixus): iShares Core MSCI Total International Stock ETF | +14.8% | +78.3% | +48.4% | +140% | 2/5 short-term, 1/3 long-term |  | 0.56 |
| [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 |
| [IEMG](https://easycompare.io/research/iemg): iShares Core MSCI Emerging Markets ETF | +17.0% | +83.4% | +39.0% | +122% | 2/5 short-term, 1/3 long-term |  | 0.44 |
| DWM: WisdomTree International Equity Fund | +12.1% | +72.7% | +63.5% | +120% | 1/5 short-term, 1/3 long-term |  | 0.72 |
| IEUR: iShares Core MSCI Europe ETF | +10.4% | +69.8% | +48.6% | +147% | 0/5 short-term, 1/3 long-term |  | 0.54 |
| [EFA](https://easycompare.io/research/efa): iShares MSCI EAFE ETF | +12.5% | +71.2% | +51.0% | +139% | 0/5 short-term, 1/3 long-term |  | 0.58 |
| BBIN: JPMorgan BetaBuilders International Equity ETF | +12.9% | +71.6% | +52.5% | — | 0/5 short-term, 1/3 long-term |  | 0.59 |
| EFG: iShares MSCI EAFE Growth ETF | +4.1% | +51.3% | +18.5% | +111% | 1/5 short-term, 0/3 long-term |  | 0.28 |
| VSS: Vanguard FTSE All-World ex-US Small-Cap ETF | +10.0% | +65.4% | +27.5% | +105% | 1/5 short-term, 0/3 long-term |  | 0.38 |
| [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 |
| JIRE: JPMorgan International Research Enhanced Equity ETF | +12.6% | +69.6% | — | — | 1/5 short-term, 0/3 long-term |  | — |
| GSID: Goldman Sachs MarketBeta International Equity ETF | +12.8% | +71.5% | +50.0% | — | 0/5 short-term, 0/3 long-term |  | 0.58 |

### How did IEFA do year by year?

This table shows each investment's total return in every full calendar year since 2013, along with where IEFA ranked among its popular alternatives each year.

- Among its popular alternatives, DFAI came out ahead of IEFA most often, in four of the five years both traded.
- IEFA finished ahead of the S&P 500 in three of its 13 full calendar years.
- Ranked against its popular alternatives each year, IEFA finished in the top quarter in one of 13 years and in the bottom quarter in one. In 2025, it ranked 16 of 22.

| Year | IEFA | SPY |
| --- | --- | --- |
| 2025 | +32.1% | +17.7% |
| 2024 | +3.3% | +24.9% |
| 2023 | +17.9% | +26.2% |
| 2022 | −15.3% | −18.2% |
| 2021 | +11.6% | +28.7% |
| 2020 | +8.2% | +18.3% |
| 2019 | +22.6% | +31.2% |
| 2018 | −14.1% | −4.6% |
| 2017 | +26.6% | +21.7% |
| 2016 | +1.6% | +12.0% |

## Risk and diversification

How IEFA 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 IEFA's worst declines?

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

- In all five of IEFA's worst declines, the S&P 500 held up better over the same dates.
- The longest climb back to a previous high took 18 months, after IEFA fell 30.4% from September 2021 to September 2022.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −34.8% | January 26, 2018 | March 23, 2020 | November 16, 2020 | −18.8% | late-2018 sell-off |
| −30.4% | September 3, 2021 | September 27, 2022 | March 1, 2024 | −18.3% | 2022 bear market |
| −22.1% | May 15, 2015 | February 11, 2016 | April 25, 2017 | −12.5% | 2015 China and oil sell-off |
| −14.4% | July 3, 2014 | January 6, 2015 | May 14, 2015 | +1.8% |  |
| −13.8% | March 19, 2025 | April 8, 2025 | April 29, 2025 | −12.2% |  |

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

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

- IEFA fell less than the S&P 500 in four of the six crashes it has traded through. The clearest case was the late-2018 sell-off, when IEFA fell 17.1% and the S&P 500 fell 19.3%.
- Among its popular alternatives, BNDX held up best, falling less than IEFA in all six crashes they both traded through.
- IEFA began trading after the 2008 financial crisis, but eight of its popular alternatives lived through it. The mildest fall among them was VTI's 55.5%, against 55.2% for the S&P 500.

| Crash | Dates | IEFA 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 | not trading | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | not trading | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | not trading | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −19.9% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −5.8% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −17.1% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −33.2% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −29.2% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −2.5% | −3.4% |

### How closely does IEFA 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.

- 11 of the 16 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than IEFA's 0.82, led by HEFA, VTI and EFV.
- HEFA took just 62% of the S&P 500's losses, against 94% for IEFA, while still keeping 71% of its gains.
- Over the past 10 years, IEFA captured 77% of the S&P 500's gains in rising months and 94% of its losses in falling months, with a beta of 0.82. 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 |
| --- | --- | --- | --- |
| IEFA: iShares Core MSCI EAFE ETF (this page) | 77.0% | 94.0% | 0.82 |
| [VTI](https://easycompare.io/research/vti): Vanguard Morningstar Total Stock Market ETF | 100% | 103% | 1.02 |
| HEFA: iShares Currency Hedged MSCI EAFE ETF | 71.0% | 62.0% | 0.65 |
| EFV: iShares MSCI EAFE Value ETF | 75.0% | 84.0% | 0.76 |
| [SPDW](https://easycompare.io/research/spdw): State Street SPDR Portfolio Developed World ex-US ETF | 80.0% | 95.0% | 0.86 |
| VPL: Vanguard FTSE Pacific ETF | 75.0% | 85.0% | 0.79 |
| [SCHF](https://easycompare.io/research/schf): Schwab International Equity ETF | 79.0% | 93.0% | 0.84 |
| [VEU](https://easycompare.io/research/veu): Vanguard FTSE All-World ex-US ETF | 76.0% | 89.0% | 0.80 |
| JPIN: JPMorgan Diversified Return International Equity ETF | 69.0% | 87.0% | 0.74 |
| [IXUS](https://easycompare.io/research/ixus): iShares Core MSCI Total International Stock ETF | 76.0% | 91.0% | 0.81 |
| [IEMG](https://easycompare.io/research/iemg): iShares Core MSCI Emerging Markets ETF | 71.0% | 83.0% | 0.77 |
| DWM: WisdomTree International Equity Fund | 70.0% | 85.0% | 0.74 |
| IEUR: iShares Core MSCI Europe ETF | 83.0% | 103% | 0.89 |
| [EFA](https://easycompare.io/research/efa): iShares MSCI EAFE ETF | 76.0% | 92.0% | 0.81 |
| EFG: iShares MSCI EAFE Growth ETF | 78.0% | 104% | 0.87 |
| VSS: Vanguard FTSE All-World ex-US Small-Cap ETF | 80.0% | 107% | 0.94 |
| [BNDX](https://easycompare.io/research/bndx): Vanguard Total International Bond ETF | 11.0% | 13.0% | 0.14 |

### What diversifies IEFA?

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 IEFA into DBMF would have cut the portfolio's volatility by 24% over the past 5 years and raised its annual return (+9.0% for IEFA alone, +9.7% for the mix).
- Among large ETFs, GLD, XLE and AMLP have moved largely independently of IEFA over the past 5 years, with correlations of 0.44 or lower, and each still earned a positive 5-year return.
- MCK made money in two of the three calendar years in which IEFA lost money.

| Investment | Correlation with IEFA | 5Y return | Volatility | Sharpe | Rose in IEFA's 3 down years |
| --- | --- | --- | --- | --- | --- |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.44 | +126% | 18.9% | 0.96 | 0 of 3 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.31 | +177% | 25.5% | 0.93 | 1 of 3 |
| AMLP: Alerian MLP ETF | 0.38 | +111% | 18.9% | 0.89 | 2 of 3 |
| PTLC: Pacer Trendpilot US Large Cap ETF | 0.49 | +57.4% | 11.8% | 0.83 | 1 of 3 |
| DBMF: iMGP DBi Managed Futures Strategy ETF | -0.33 | +59.7% | 12.4% | 0.82 | 1 of 3 |
| DBA: Invesco DB Agriculture Fund | 0.22 | +66.4% | 13.8% | 0.81 | 2 of 3 |
| USO: United States Oil Fund, LP | -0.09 | +176% | 37.7% | 0.73 | 1 of 3 |
| PTNQ: Pacer Trendpilot 100 ETF | 0.47 | +58.8% | 14.1% | 0.73 | 1 of 3 |

## Common questions

### What was IEFA's worst drawdown?

IEFA's deepest decline since it began trading in 2012 was 34.8%, from January 2018 to March 2020. It took eight months from the low to climb back to its old high. Because IEFA launched in October 2012, that record does not include the dot-com bust, the 2008 financial crisis or two other sell-offs.

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

Over 13 full calendar years, IEFA's best year was 2025, when it returned 32.1%. Its worst was 2022, with a return of -15.3%.

### Is there a better investment than IEFA?

Among IEFA's popular alternatives, HEFA and DWM earned more than IEFA with less volatility over the past 5 years. HEFA returned 13.3% a year at 13.8% volatility, against 8.3% a year at 16.6%. VEA tracks the same thing for 0.03% a year against IEFA's 0.07%, and has kept pace over the past decade: about $40 less in fees on $10,000 over 10 years.

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

No. IEFA'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, IEFA'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 IEFA's Sharpe ratio?

IEFA's Sharpe ratio over the past 5 years was 0.56, against 0.79 for the S&P 500, so IEFA 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 IEFA with the S&P 500?

Over the past 5 years, IEFA'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 IEFA instead: the lower it is, the more that option would diversify a IEFA holding.

### What are the best alternatives to IEFA?

Of the 26 popular alternatives we compared, eight outperformed IEFA in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: VTI, HEFA and EFV.

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

IEFA finished ahead of the S&P 500 (SPY) in three of 13 full calendar years. In 2025, it returned +32.1%, against +17.7% for the index.

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

IEFA fell less than the S&P 500 (SPY) in four of the six major crashes it has traded through, and further in two. The clearest case was the late-2018 sell-off, when IEFA fell 17.1% and the S&P 500 fell 19.3%.

### What diversifies IEFA?

These had a low correlation with IEFA 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 0.31), CLS (correlation 0.25) and FIX (correlation 0.38). A correlation near zero means the two have moved largely independently.

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## Explore further

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