# EFA vs IEFA: fees, holdings and returns compared

> EFA vs IEFA: what each ETF holds, what it costs, and how both did over the same dates, with yearly returns and worst drops.

EFA and IEFA both hold companies in Europe, Australasia and the Far East. EFA holds large and mid-size companies only, about 650. IEFA adds small companies, for about 2,600 in all, and charges a much lower fee. Over the same dates since October 2012, EFA returned about 8.0% a year and IEFA returned about 8.3% a year.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 17, 2026. Prices through October 20, 2026.

## Key points

- IEFA costs less: 0.07% a year against 0.32%.
- EFA started trading in August 2001. IEFA started in October 2012.
- Worst drops since 2012: EFA −34.2%, IEFA −34.8%.
- Daily correlation: 1.00 (1 means they always move together).

## What is the difference between EFA and IEFA?

Both follow MSCI EAFE indexes from iShares. EFA, launched in 2001, sticks to larger companies. IEFA, launched in 2012 as a cheaper core fund, includes small companies too. Large companies make up most of both, so they move closely. EFA trades in larger amounts each day and has a busy options market.

| Fact | EFA | IEFA |
| --- | --- | --- |
| Full name | iShares MSCI EAFE ETF | iShares Core MSCI EAFE ETF |
| Issuer | iShares (BlackRock) | iShares (BlackRock) |
| Expense ratio | 0.32% a year | 0.07% a year |
| Started trading | August 14, 2001 | October 18, 2012 |
| Tracks | MSCI EAFE Index (Net) | MSCI EAFE IMI Index (Net) |
| Holdings | 657 holdings as of October 15, 2026 | 2,626 holdings as of October 15, 2026 |
| Type | International stocks, ETF | International stocks, ETF |

Fund facts checked on the [iShares (BlackRock) EFA page](https://www.ishares.com/us/products/239623/ishares-msci-eafe-etf) and the [iShares (BlackRock) IEFA page](https://www.ishares.com/us/products/244049/ishares-core-msci-eafe-etf).

## Is EFA or IEFA cheaper?

IEFA costs less: 0.07% a year against 0.32%. On $10,000, that is about $32 a year for EFA and $7 for IEFA. The fund takes its fee out of its own value a little each day, so you never get a bill.

## EFA vs IEFA performance over the same dates

Both funds are measured from October 2012 to October 2026, the dates both traded. EFA returned about 8.0% a year and IEFA returned about 8.3% a year. IEFA came out ahead over this period, which does not mean it will again.

| Measure | EFA | IEFA |
| --- | --- | --- |
| $10,000 grew to | $29,389 | $30,379 |
| Total return | 193.9% | 203.8% |
| Return per year (CAGR) | 8.0% | 8.3% |
| Worst drop from a high | −34.2% | −34.8% |
| Volatility (how much it swings) | 16.6% | 16.6% |
| Last 12 months | 12.5% | 12.8% |
| Last 3 years, per year | 19.6% | 19.9% |
| Last 5 years, per year | 8.6% | 8.3% |
| Last 10 years, per year | 9.1% | 9.2% |

Prices through October 20, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

## EFA and IEFA returns by year

| Year | EFA | IEFA |
| --- | --- | --- |
| 2026 (part of the year) | 9.7% | 9.9% |
| 2025 | 31.6% | 32.1% |
| 2024 | 3.5% | 3.3% |
| 2023 | 18.4% | 17.9% |
| 2022 | −14.4% | −15.2% |
| 2021 | 11.5% | 11.6% |
| 2020 | 7.6% | 8.2% |
| 2019 | 22.0% | 22.6% |
| 2018 | −13.8% | −14.1% |
| 2017 | 25.1% | 26.6% |
| 2016 | 1.4% | 1.6% |
| 2015 | −1.0% | 0.7% |
| 2014 | −6.2% | −6.3% |
| 2013 | 21.4% | 22.5% |
| 2012 (part of the year) | 7.7% | 7.3% |

## Which fell further in bad times?

A drawdown is how far a fund falls from its last high point. EFA's worst fall was −34.2%, from January 26, 2018 to March 23, 2020. It got back to that high on November 16, 2020.

IEFA's worst fall was −34.8%, from January 26, 2018 to March 23, 2020. It got back to that high on November 16, 2020.

Their daily moves had a correlation of 1.00. A correlation of 1 means two funds always move up and down together. Near 0 means they move on their own. So holding both adds little variety.

## Why people choose EFA or IEFA

**EFA.** Traders and big institutions often pick EFA because so much trades each day.

**IEFA.** Long-term investors often pick IEFA for its lower fee and its wider set of companies.

## Strategies that hold EFA or IEFA

These classic strategies hold one or both at least some of the time. Each is a set of written rules you can open, test and copy.

- [Vigilant Asset Allocation (VAA)](https://tactfolio.com/strategies/vigilant-asset-allocation.md), by Wouter Keller and JW Keuning, 2017 (holds EFA)
- [Composite Dual Momentum](https://tactfolio.com/strategies/composite-dual-momentum.md), by Gary Antonacci, 2012 (holds EFA)
- [Global Tactical Asset Allocation (GTAA 5)](https://tactfolio.com/strategies/global-tactical-asset-allocation.md), by Mebane Faber, 2007 (holds EFA)
- [GTAA 13: Faber’s 13-asset tactical allocation](https://tactfolio.com/strategies/gtaa-13.md), by Mebane Faber, 2013 (holds EFA)
- [GTAA Aggressive 3 (Faber GTAA AGG3)](https://tactfolio.com/strategies/gtaa-aggressive-3.md), by Mebane Faber, 2013 (holds EFA)
- [GTAA Aggressive 6 (Faber GTAA AGG6)](https://tactfolio.com/strategies/gtaa-aggressive-6.md), by Mebane Faber, 2013 (holds EFA)
- [Ivy Portfolio rotation (Faber’s relative strength model)](https://tactfolio.com/strategies/ivy-portfolio-rotation.md), by Mebane Faber and Eric Richardson, 2009 (holds EFA)
- [12-Month High Switch (Meb Faber)](https://tactfolio.com/strategies/12-month-high-switch.md), by Mebane Faber, 2020 (holds EFA)
- [Mama Bear Portfolio (Muscular Portfolios)](https://tactfolio.com/strategies/mama-bear-portfolio.md), by Brian Livingston, 2018 (holds EFA)
- [Papa Bear Portfolio (Muscular Portfolios)](https://tactfolio.com/strategies/papa-bear-portfolio.md), by Brian Livingston, 2018 (holds EFA)
- [Quint Switching Filtered (Lewis Glenn’s QSF)](https://tactfolio.com/strategies/quint-switching-filtered.md), by Lewis A. Glenn, 2018 (holds EFA)
- [Robust Asset Allocation Balanced (Alpha Architect RAA)](https://tactfolio.com/strategies/robust-asset-allocation-balanced.md), by Wesley Gray (Alpha Architect), 2014 (holds EFA)
- [Robust Asset Allocation Aggressive (Alpha Architect RAA)](https://tactfolio.com/strategies/robust-asset-allocation-aggressive.md), by Wesley Gray (Alpha Architect), 2014 (holds EFA)
- [Ivy Portfolio (Faber and Richardson, buy and hold)](https://tactfolio.com/strategies/ivy-portfolio.md), by Mebane Faber and Eric Richardson, 2009 (holds EFA)

## Other funds like EFA and IEFA

Each fund has more funds that hold the same kind of investments, ranked by how closely they move with it: [EFA alternatives](https://tactfolio.com/alternatives/EFA.md) and [IEFA alternatives](https://tactfolio.com/alternatives/IEFA.md).

## Test a mix of EFA and IEFA

Open the [builder](https://tactfolio.com/builder), add EFA and IEFA, and give each a weight, such as 50% and 50%. The backtest shows how the mix would have done, with its worst drop, on daily prices. You can also add a rule, for example to switch between them, and compare. Read the full pages for [EFA](https://tactfolio.com/etf/EFA.md) and [IEFA](https://tactfolio.com/etf/IEFA.md), or see [more ETF comparisons](https://tactfolio.com/etf-comparisons.md).

## The details

Both funds use Tactfolio's stored daily prices, adjusted for splits, with dividends reinvested. They are compared only on days both traded, starting the later fund's first day, so neither gets a head start. Correlation uses daily returns over the same days. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [What is an ETF](https://tactfolio.com/learn/what-is-an-etf): An ETF is a fund that trades like a stock. Learn how ETFs work, what they cost, the main types, and the risks, with SEC sources.
- [Momentum strategy](https://tactfolio.com/learn/momentum-strategy): A momentum strategy buys recent winners by a written rule.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## Common questions

### What is the difference between EFA and IEFA?

IEFA holds small companies too, about 2,600 in all against about 650 for EFA, and charges a much lower yearly fee. Both cover the same countries.

### Why does EFA have a longer history?

EFA started in 2001 and IEFA in 2012, so the comparison above starts in October 2012.

### Which is cheaper, EFA or IEFA?

IEFA costs less: 0.07% a year against 0.32%. Fees come from each issuer and were checked on October 16, 2026.

### Which did better, EFA or IEFA?

From October 2012 to October 2026, EFA returned about 8.0% a year and IEFA returned about 8.3% a year, with dividends reinvested. Their worst drops were −34.2% and −34.8%. Past returns do not tell you what comes next.

## Sources

- [iShares (BlackRock): iShares MSCI EAFE ETF fund page](https://www.ishares.com/us/products/239623/ishares-msci-eafe-etf)
- [iShares (BlackRock): iShares Core MSCI EAFE ETF fund page](https://www.ishares.com/us/products/244049/ishares-core-msci-eafe-etf)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.