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EEM vs. EFA
Performance
Return for Risk
Drawdowns
Volatility
Dividends

EEM vs. EFA

Last updated Jun 13, 2026

EEM (iShares MSCI Emerging Markets ETF) and EFA (iShares MSCI EAFE ETF) are both exchange-traded funds - EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net), while EFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE Index (Net). Both are passively managed. Over the past 10 years, EEM returned 9.91%/yr vs 9.84%/yr for EFA. Their correlation of 0.80 suggests significant overlap in exposure. EEM charges 0.72%/yr vs 0.32%/yr for EFA.

Performance

EEM vs. EFA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Emerging Markets ETF (EEM) and iShares MSCI EAFE ETF (EFA). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, EEM achieves a 24.07% return, which is significantly higher than EFA's 9.36% return. Both investments have delivered pretty close results over the past 10 years, with EEM having a 9.91% annualized return and EFA not far behind at 9.84%.

EEM

1D
0.56%
1M
1.00%
YTD
24.07%
6M
26.94%
1Y
45.22%
3Y*
21.60%
5Y*
6.56%
10Y*
9.91%

EFA

1D
0.28%
1M
1.15%
YTD
9.36%
6M
10.80%
1Y
20.34%
3Y*
16.14%
5Y*
8.36%
10Y*
9.84%
*Multi-year figures are annualized to reflect compound growth (CAGR)

EEM vs. EFA - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
EEM
iShares MSCI Emerging Markets ETF		24.07%33.98%6.49%8.95%-20.56%-3.63%17.02%18.22%-15.31%37.26%
EFA
iShares MSCI EAFE ETF		9.36%31.55%3.49%18.36%-14.39%11.45%7.60%22.04%-13.82%25.07%

Correlation

The correlation between EEM and EFA is 0.77, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.77

Correlation (3Y)
Calculated over the trailing 3-year period

0.75

Correlation (5Y)
Calculated over the trailing 5-year period

0.76

Correlation (10Y)
Calculated over the trailing 10-year period

0.77

Correlation (All Time)
Calculated using the full available price history since Apr 14, 2003

0.80

The correlation between EEM and EFA has been stable across timeframes, ranging from 0.75 to 0.80 - a consistent structural relationship.

EEM vs. EFA - Sectors Allocation Comparison

Sectors
EEM
EFA

Technology

43.6%
10.4%

Financial Services

17.5%
24.6%

Consumer Cyclical

8.1%
7.6%

Industrials

6.2%
19.9%

Basic Materials

6.1%
5.9%

Communication Services

5.7%
4.5%

Energy

3.3%
4.0%

Consumer Defensive

2.7%
6.7%

Healthcare

2.5%
10.6%

Utilities

2.0%
4.0%

Real Estate

0.9%
1.9%

Technology

EEM
43.6%
EFA
10.4%

Financial Services

EEM
17.5%
EFA
24.6%

Consumer Cyclical

EEM
8.1%
EFA
7.6%

Industrials

EEM
6.2%
EFA
19.9%

Basic Materials

EEM
6.1%
EFA
5.9%

Communication Services

EEM
5.7%
EFA
4.5%

Energy

EEM
3.3%
EFA
4.0%

Consumer Defensive

EEM
2.7%
EFA
6.7%

Healthcare

EEM
2.5%
EFA
10.6%

Utilities

EEM
2.0%
EFA
4.0%

Real Estate

EEM
0.9%
EFA
1.9%

Compare stocks, funds, or ETFs

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iShares MSCI Emerging Markets ETF

iShares MSCI EAFE ETF

Often compared with EEM:
EEM vs. VWOEEM vs. SPYEEM vs. IEMGEEM vs. IS3N.DEEEM vs. VXUSEEM vs. EEMSEEM vs. SPEM
Often compared with EFA:
EFA vs. IEFAEFA vs. VEAEFA vs. EFGEFA vs. XEF.TOEFA vs. EFAVEFA vs. IEUREFA vs. EFO

Return for Risk

EEM vs. EFA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
EEM
EEM Risk / Return Rank: 7575
Overall Rank
EEM Sharpe Ratio Rank: 7676
Sharpe Ratio Rank
EEM Sortino Ratio Rank: 7070
Sortino Ratio Rank
EEM Omega Ratio Rank: 7878
Omega Ratio Rank
EEM Calmar Ratio Rank: 7575
Calmar Ratio Rank
EEM Martin Ratio Rank: 7575
Martin Ratio Rank
EFA
EFA Risk / Return Rank: 4242
Overall Rank
EFA Sharpe Ratio Rank: 4242
Sharpe Ratio Rank
EFA Sortino Ratio Rank: 4242
Sortino Ratio Rank
EFA Omega Ratio Rank: 4141
Omega Ratio Rank
EFA Calmar Ratio Rank: 4040
Calmar Ratio Rank
EFA Martin Ratio Rank: 4646
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

EEM vs. EFA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets ETF (EEM) and iShares MSCI EAFE ETF (EFA). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

EEMEFADifference
Sharpe ratioReturn per unit of total volatility
2.10
1.31

+0.79

Sortino ratioReturn per unit of downside risk
2.73
1.91

+0.82

Omega ratioGain probability vs. loss probability

1.40

1.24

+0.16

Calmar ratioReturn relative to maximum drawdown

3.36

1.79

+1.57

Martin ratioReturn relative to average drawdown

12.38

6.67

+5.71

EEM vs. EFA - Sharpe Ratio Comparison

The current EEM Sharpe Ratio is 2.10, which is higher than the EFA Sharpe Ratio of 1.31. The chart below compares the historical Sharpe Ratios of EEM and EFA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

EEM vs. EFA - Drawdown Comparison

The maximum EEM drawdown since its inception was -66.43%, which is greater than EFA's maximum drawdown of -61.04%. Use the drawdown chart below to compare losses from any high point for EEM and EFA.

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Drawdown Indicators

EEMEFADifference

Max Drawdown

Largest peak-to-trough decline

-66.43%

-61.04%

-5.39%

Max Drawdown (1Y)

Largest decline over 1 year

-13.52%

-11.42%

-2.10%

Max Drawdown (3Y)

Largest decline over 3 years

-17.29%

-14.05%

-3.24%

Max Drawdown (5Y)

Largest decline over 5 years

-37.49%

-29.53%

-7.96%

Max Drawdown (10Y)

Largest decline over 10 years

-39.82%

-34.19%

-5.63%

Current Drawdown

Current decline from peak

-4.12%

-0.61%

-3.51%

Average Drawdown

Average peak-to-trough decline

-16.00%

-11.92%

-4.08%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.67%

3.07%

+0.60%

Volatility

EEM vs. EFA - Volatility Comparison

iShares MSCI Emerging Markets ETF (EEM) has a higher volatility of 10.80% compared to iShares MSCI EAFE ETF (EFA) at 5.50%. This indicates that EEM's price experiences larger fluctuations and is considered to be riskier than EFA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

EEMEFADifference

Volatility (1M)

Calculated over the trailing 1-month period

10.80%

5.50%

+5.30%

Volatility (6M)

Calculated over the trailing 6-month period

19.39%

13.19%

+6.20%

Volatility (1Y)

Calculated over the trailing 1-year period

21.64%

15.64%

+6.00%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

19.26%

16.58%

+2.68%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

20.64%

17.27%

+3.37%

EEM vs. EFA - Expense Ratio Comparison

EEM has a 0.72% expense ratio, which is higher than EFA's 0.32% expense ratio.

Dividends

EEM vs. EFA - Dividend Comparison

EEM's dividend yield for the trailing twelve months is around 1.79%, less than EFA's 3.09% yield.

PositionTTM20252024202320222021202020192018201720162015
EEM
iShares MSCI Emerging Markets ETF		1.79%2.22%2.43%2.63%2.50%1.99%1.45%2.76%2.24%1.89%1.89%2.49%
EFA
iShares MSCI EAFE ETF		3.09%3.38%3.24%2.98%2.69%3.33%2.13%3.10%3.39%2.57%3.07%2.76%

Frequently Asked Questions

EEM and EFA have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

EEM has higher volatility (10.80%) compared to EFA (5.50%). In terms of maximum drawdown, EEM dropped -66.43% vs EFA's -61.04%.

On 10-year performance, EEM leads with 9.91% vs 9.84% for EFA. On fees, EFA is cheaper at 0.32% per year. On volatility, EFA has been the lower-risk option at 5.50%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, EEM has performed better with a 9.91% return vs 9.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

EFA is cheaper with a 0.32% expense ratio, compared with 0.72% for EEM.

EFA has the higher dividend yield at 3.09%, compared with 1.79% for EEM.

EEM is categorized as Emerging Markets Diversified, while EFA is Foreign Large Cap Equities. EEM tracks MSCI Emerging Markets Index (Net), while EFA tracks MSCI EAFE Index (Net). Their fees differ too: 0.72% for EEM and 0.32% for EFA.

EEM currently has the higher Sharpe Ratio (2.10 vs 1.31), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.

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