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ESGD vs. IEFA
Performance
Return for Risk
Drawdowns
Volatility
Dividends

ESGD vs. IEFA

Last updated Jun 4, 2026

ESGD (iShares ESG Aware MSCI EAFE ETF) and IEFA (iShares Core MSCI EAFE ETF) are both Foreign Large Cap Equities funds from iShares - ESGD tracks the MSCI EAFE Extended ESG Focus Index while IEFA tracks the MSCI EAFE IMI Index (Net). Both are passively managed. Over the past 5 years, ESGD returned 7.90%/yr vs 8.07%/yr for IEFA. With a 0.97 correlation, they move nearly in lockstep. ESGD charges 0.20%/yr vs 0.07%/yr for IEFA.

Performance

ESGD vs. IEFA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares ESG Aware MSCI EAFE ETF (ESGD) and iShares Core MSCI EAFE ETF (IEFA). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, ESGD achieves a 8.31% return, which is significantly lower than IEFA's 8.85% return.

ESGD

1D
-0.81%
1M
3.52%
YTD
8.31%
6M
10.53%
1Y
20.25%
3Y*
15.89%
5Y*
7.90%
10Y*
—

IEFA

1D
-0.78%
1M
3.43%
YTD
8.85%
6M
11.45%
1Y
22.00%
3Y*
16.72%
5Y*
8.07%
10Y*
9.22%
*Multi-year figures are annualized to reflect compound growth (CAGR)

ESGD vs. IEFA - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
ESGD
iShares ESG Aware MSCI EAFE ETF		8.31%29.63%3.95%18.53%-15.17%11.79%8.20%23.12%-13.33%25.10%
IEFA
iShares Core MSCI EAFE ETF		8.85%32.08%3.26%17.95%-15.24%11.63%8.18%22.64%-14.14%26.57%

Correlation

The correlation between ESGD and IEFA is 1.00 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

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

1.00

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

0.99

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

1.00

Correlation (All Time)
Calculated using the full available price history since Jul 1, 2016

0.97

The correlation between ESGD and IEFA has been stable across timeframes, ranging from 0.97 to 1.00 - a consistent structural relationship.

ESGD vs. IEFA - Sectors Allocation Comparison

Sectors
ESGD
IEFA

Financial Services

26.4%
22.5%

Industrials

19.2%
20.1%

Technology

11.7%
10.8%

Healthcare

10.3%
9.5%

Consumer Cyclical

7.6%
8.0%

Consumer Defensive

6.4%
6.6%

Basic Materials

4.6%
7.0%

Communication Services

4.0%
4.4%

Energy

3.9%
3.8%

Utilities

3.9%
3.6%

Real Estate

2.0%
3.0%

Financial Services

ESGD
26.4%
IEFA
22.5%

Industrials

ESGD
19.2%
IEFA
20.1%

Technology

ESGD
11.7%
IEFA
10.8%

Healthcare

ESGD
10.3%
IEFA
9.5%

Consumer Cyclical

ESGD
7.6%
IEFA
8.0%

Consumer Defensive

ESGD
6.4%
IEFA
6.6%

Basic Materials

ESGD
4.6%
IEFA
7.0%

Communication Services

ESGD
4.0%
IEFA
4.4%

Energy

ESGD
3.9%
IEFA
3.8%

Utilities

ESGD
3.9%
IEFA
3.6%

Real Estate

ESGD
2.0%
IEFA
3.0%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares ESG Aware MSCI EAFE ETF

iShares Core MSCI EAFE ETF

Often compared with ESGD:
ESGD vs. ESGUESGD vs. ESGVESGD vs. SPYESGD vs. DMXFESGD vs. SDGESGD vs. FNIDXESGD vs. INTF
Often compared with IEFA:
IEFA vs. VEAIEFA vs. VXUSIEFA vs. EFAIEFA vs. FSPSXIEFA vs. IEMGIEFA vs. XEF.TOIEFA vs. IXUS

Return for Risk

ESGD vs. IEFA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
ESGD
ESGD Risk / Return Rank: 3737
Overall Rank
ESGD Sharpe Ratio Rank: 3737
Sharpe Ratio Rank
ESGD Sortino Ratio Rank: 3737
Sortino Ratio Rank
ESGD Omega Ratio Rank: 3636
Omega Ratio Rank
ESGD Calmar Ratio Rank: 3535
Calmar Ratio Rank
ESGD Martin Ratio Rank: 4141
Martin Ratio Rank
IEFA
IEFA Risk / Return Rank: 4141
Overall Rank
IEFA Sharpe Ratio Rank: 4141
Sharpe Ratio Rank
IEFA Sortino Ratio Rank: 4141
Sortino Ratio Rank
IEFA Omega Ratio Rank: 4141
Omega Ratio Rank
IEFA Calmar Ratio Rank: 3838
Calmar Ratio Rank
IEFA Martin Ratio Rank: 4444
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.

ESGD vs. IEFA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG Aware MSCI EAFE ETF (ESGD) and iShares Core MSCI EAFE ETF (IEFA). 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.

ESGDIEFADifference
Sharpe ratioReturn per unit of total volatility
1.34
1.48

-0.14

Sortino ratioReturn per unit of downside risk
1.95
2.14

-0.19

Omega ratioGain probability vs. loss probability

1.24

1.27

-0.03

Calmar ratioReturn relative to maximum drawdown

1.74

1.92

-0.18

Martin ratioReturn relative to average drawdown

6.53

7.34

-0.81

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ESGD vs. IEFA - Sharpe Ratio Comparison

The current ESGD Sharpe Ratio is 1.34, which is comparable to the IEFA Sharpe Ratio of 1.48. The chart below compares the historical Sharpe Ratios of ESGD and IEFA, 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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Sharpe Ratios by Period

ESGDIEFADifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.34

1.48

-0.14

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.48

0.49

-0.01

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

—

0.53

—

Sharpe Ratio (All Time)

Calculated using the full available price history

0.57

0.51

+0.06

Drawdowns

ESGD vs. IEFA - Drawdown Comparison

The maximum ESGD drawdown since its inception was -33.70%, roughly equal to the maximum IEFA drawdown of -34.78%. Use the drawdown chart below to compare losses from any high point for ESGD and IEFA.

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Drawdown Indicators

ESGDIEFADifference

Max Drawdown

Largest peak-to-trough decline

-33.70%

-34.78%

+1.08%

Max Drawdown (1Y)

Largest decline over 1 year

-11.68%

-11.50%

-0.18%

Max Drawdown (3Y)

Largest decline over 3 years

-13.86%

-13.76%

-0.10%

Max Drawdown (5Y)

Largest decline over 5 years

-30.03%

-30.41%

+0.38%

Max Drawdown (10Y)

Largest decline over 10 years

—

-34.78%

—

Current Drawdown

Current decline from peak

-1.36%

-1.20%

-0.16%

Average Drawdown

Average peak-to-trough decline

-6.19%

-6.69%

+0.50%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.11%

3.01%

+0.10%

Volatility

ESGD vs. IEFA - Volatility Comparison

iShares ESG Aware MSCI EAFE ETF (ESGD) and iShares Core MSCI EAFE ETF (IEFA) have volatilities of 4.88% and 4.86%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

ESGDIEFADifference

Volatility (1M)

Calculated over the trailing 1-month period

4.88%

4.86%

+0.02%

Volatility (6M)

Calculated over the trailing 6-month period

12.59%

12.42%

+0.17%

Volatility (1Y)

Calculated over the trailing 1-year period

15.22%

14.96%

+0.26%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.61%

16.51%

+0.10%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

16.97%

17.30%

-0.33%

ESGD vs. IEFA - Expense Ratio Comparison

ESGD has a 0.20% expense ratio, which is higher than IEFA's 0.07% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

ESGD vs. IEFA - Dividend Comparison

ESGD's dividend yield for the trailing twelve months is around 3.33%, more than IEFA's 3.26% yield.

PositionTTM20252024202320222021202020192018201720162015
ESGD
iShares ESG Aware MSCI EAFE ETF		3.33%3.60%3.23%3.02%2.59%2.75%1.63%2.57%2.69%2.65%0.09%0.00%
IEFA
iShares Core MSCI EAFE ETF		3.26%3.55%3.47%3.20%2.70%3.32%1.90%3.18%3.46%2.57%2.96%2.63%

Frequently Asked Questions

With a correlation of 1.00, ESGD and IEFA move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

ESGD has higher volatility (4.88%) compared to IEFA (4.86%). In terms of maximum drawdown, ESGD dropped -33.70% vs IEFA's -34.78%.

On 5-year performance, IEFA leads with 8.07% vs 7.90% for ESGD. On fees, IEFA is cheaper at 0.07% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 5-year period, IEFA has performed better with a 8.07% return vs 7.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

IEFA is cheaper with a 0.07% expense ratio, compared with 0.20% for ESGD.

ESGD has the higher dividend yield at 3.33%, compared with 3.26% for IEFA.

ESGD tracks MSCI EAFE Extended ESG Focus Index, while IEFA tracks MSCI EAFE IMI Index (Net). Their fees differ too: 0.20% for ESGD and 0.07% for IEFA.

IEFA currently has the higher Sharpe Ratio (1.48 vs 1.34), 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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