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EFA vs. EEM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

EFA vs. EEM

Last updated Jun 13, 2026

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

Performance

EFA vs. EEM - Performance Comparison

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

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Returns By Period

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

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%
*Multi-year figures are annualized to reflect compound growth (CAGR)

EFA vs. EEM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
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%

Correlation

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

EFA vs. EEM - Sectors Allocation Comparison

Sectors
EFA
EEM

Financial Services

24.6%
17.5%

Industrials

19.9%
6.2%

Healthcare

10.6%
2.5%

Technology

10.4%
43.6%

Consumer Cyclical

7.6%
8.1%

Consumer Defensive

6.7%
2.7%

Basic Materials

5.9%
6.1%

Communication Services

4.5%
5.7%

Energy

4.0%
3.3%

Utilities

4.0%
2.0%

Real Estate

1.9%
0.9%

Financial Services

EFA
24.6%
EEM
17.5%

Industrials

EFA
19.9%
EEM
6.2%

Healthcare

EFA
10.6%
EEM
2.5%

Technology

EFA
10.4%
EEM
43.6%

Consumer Cyclical

EFA
7.6%
EEM
8.1%

Consumer Defensive

EFA
6.7%
EEM
2.7%

Basic Materials

EFA
5.9%
EEM
6.1%

Communication Services

EFA
4.5%
EEM
5.7%

Energy

EFA
4.0%
EEM
3.3%

Utilities

EFA
4.0%
EEM
2.0%

Real Estate

EFA
1.9%
EEM
0.9%

Compare stocks, funds, or ETFs

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iShares MSCI EAFE ETF

iShares MSCI Emerging Markets ETF

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

Return for Risk

EFA vs. EEM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
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
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
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.

EFA vs. EEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI EAFE ETF (EFA) and iShares MSCI Emerging Markets ETF (EEM). 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.

EFAEEMDifference
Sharpe ratioReturn per unit of total volatility
1.31
2.10

-0.79

Sortino ratioReturn per unit of downside risk
1.91
2.73

-0.82

Omega ratioGain probability vs. loss probability

1.24

1.40

-0.16

Calmar ratioReturn relative to maximum drawdown

1.79

3.36

-1.57

Martin ratioReturn relative to average drawdown

6.67

12.38

-5.71

EFA vs. EEM - Sharpe Ratio Comparison

The current EFA Sharpe Ratio is 1.31, which is lower than the EEM Sharpe Ratio of 2.10. The chart below compares the historical Sharpe Ratios of EFA and EEM, 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

EFA vs. EEM - Drawdown Comparison

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

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Drawdown Indicators

EFAEEMDifference

Max Drawdown

Largest peak-to-trough decline

-61.04%

-66.43%

+5.39%

Max Drawdown (1Y)

Largest decline over 1 year

-11.42%

-13.52%

+2.10%

Max Drawdown (3Y)

Largest decline over 3 years

-14.05%

-17.29%

+3.24%

Max Drawdown (5Y)

Largest decline over 5 years

-29.53%

-37.49%

+7.96%

Max Drawdown (10Y)

Largest decline over 10 years

-34.19%

-39.82%

+5.63%

Current Drawdown

Current decline from peak

-0.61%

-4.12%

+3.51%

Average Drawdown

Average peak-to-trough decline

-11.92%

-16.00%

+4.08%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.07%

3.67%

-0.60%

Volatility

EFA vs. EEM - Volatility Comparison

The current volatility for iShares MSCI EAFE ETF (EFA) is 5.50%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 10.80%. This indicates that EFA experiences smaller price fluctuations and is considered to be less risky than EEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

EFAEEMDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.50%

10.80%

-5.30%

Volatility (6M)

Calculated over the trailing 6-month period

13.19%

19.39%

-6.20%

Volatility (1Y)

Calculated over the trailing 1-year period

15.64%

21.64%

-6.00%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.58%

19.26%

-2.68%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

17.27%

20.64%

-3.37%

EFA vs. EEM - Expense Ratio Comparison

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

Dividends

EFA vs. EEM - Dividend Comparison

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

EFA and EEM 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, EFA dropped -61.04% vs EEM's -66.43%.

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.

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

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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