FXI vs. EFA

Last updated Jun 9, 2026

FXI (iShares China Large-Cap ETF) and EFA (iShares MSCI EAFE ETF) are both exchange-traded funds - FXI is a China Equities fund tracking the FTSE China 50 Index, while EFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE Index (Net). Both are passively managed. Over the past 10 years, FXI returned 2.76%/yr vs 9.28%/yr for EFA. A 0.66 correlation means they provide meaningful diversification when combined. FXI charges 0.74%/yr vs 0.32%/yr for EFA.

Performance

FXI vs. EFA - Performance Comparison

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

Returns By Period

In the year-to-date period, FXI achieves a -9.43% return, which is significantly lower than EFA's 7.13% return. Over the past 10 years, FXI has underperformed EFA with an annualized return of 2.76%, while EFA has yielded a comparatively higher 9.28% annualized return.

FXI

• 1D: -0.20%
• 1M: -6.87%
• YTD: -9.43%
• 6M: -11.18%
• 1Y: -2.84%
• 3Y*: 10.10%
• 5Y*: -3.36%
• 10Y*: 2.76%

EFA

• 1D: 0.61%
• 1M: -1.04%
• YTD: 7.13%
• 6M: 9.67%
• 1Y: 18.74%
• 3Y*: 15.87%
• 5Y*: 8.03%
• 10Y*: 9.28%

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

FXI vs. EFA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FXI iShares China Large-Cap ETF	-9.43%	28.95%	28.98%	-12.42%	-20.66%	-20.06%	8.92%	14.90%	-13.28%	36.26%
EFA iShares MSCI EAFE ETF	7.13%	31.55%	3.49%	18.36%	-14.39%	11.45%	7.60%	22.04%	-13.82%	25.07%

Correlation

The correlation between FXI and EFA is 0.52, 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	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.51
Correlation (5Y) Calculated over the trailing 5-year period	0.52
Correlation (10Y) Calculated over the trailing 10-year period	0.59
Correlation (All Time) Calculated using the full available price history since Oct 8, 2004	0.66

The correlation between FXI and EFA shifts across timeframes, from 0.51 (3 years) to 0.66 (all time), reflecting how their relationship changes across market environments.

FXI vs. EFA - Sectors Allocation Comparison

Sectors	FXI	EFA
Financial Services	34.6%	24.6%
Consumer Cyclical	25.3%	7.6%
Communication Services	12.2%	4.5%
Technology	9.3%	10.4%
Energy	5.3%	4.0%
Industrials	4.1%	19.9%
Basic Materials	3.9%	5.9%
Healthcare	2.2%	10.6%
Real Estate	1.1%	1.9%
Consumer Defensive	0.9%	6.7%
Utilities	0.4%	4.0%

Return for Risk

FXI vs. EFA — Risk / Return Rank

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

FXI

FXI Risk / Return Rank: 8
FXI Sharpe Ratio Rank: 8
FXI Sortino Ratio Rank: 8
FXI Omega Ratio Rank: 8
FXI Calmar Ratio Rank: 8
FXI Martin Ratio Rank: 8

EFA

EFA Risk / Return Rank: 38
EFA Sharpe Ratio Rank: 38
EFA Sortino Ratio Rank: 37
EFA Omega Ratio Rank: 37
EFA Calmar Ratio Rank: 36
EFA Martin Ratio Rank: 41

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.

FXI vs. EFA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares China Large-Cap ETF (FXI) 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.

	FXI	EFA	Difference
Sharpe ratio: Return per unit of total volatility	-0.14	1.23	-1.38
Sortino ratio: Return per unit of downside risk	-0.06	1.79	-1.85
Omega ratio: Gain probability vs. loss probability	0.99	1.23	-0.23
Calmar ratio: Return relative to maximum drawdown	-0.18	1.65	-1.83
Martin ratio: Return relative to average drawdown	-0.38	6.15	-6.54
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FXI vs. EFA - Sharpe Ratio Comparison

The current FXI Sharpe Ratio is -0.14, which is lower than the EFA Sharpe Ratio of 1.23. The chart below compares the historical Sharpe Ratios of FXI 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.

Sharpe Ratios by Period

	FXI	EFA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.14	1.23	-1.38
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.11	0.49	-0.59
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.10	0.54	-0.44
Sharpe Ratio (All Time) Calculated using the full available price history	0.16	0.31	-0.15

Drawdowns

FXI vs. EFA - Drawdown Comparison

The maximum FXI drawdown since its inception was -72.68%, which is greater than EFA's maximum drawdown of -61.04%. Use the drawdown chart below to compare losses from any high point for FXI and EFA.

Drawdown Indicators

	FXI	EFA	Difference
Max Drawdown Largest peak-to-trough decline	-72.68%	-61.04%	-11.64%
Max Drawdown (1Y) Largest decline over 1 year	-16.03%	-11.42%	-4.61%
Max Drawdown (3Y) Largest decline over 3 years	-28.72%	-14.05%	-14.67%
Max Drawdown (5Y) Largest decline over 5 years	-54.94%	-29.53%	-25.41%
Max Drawdown (10Y) Largest decline over 10 years	-60.81%	-34.19%	-26.62%
Current Drawdown Current decline from peak	-28.68%	-2.63%	-26.05%
Average Drawdown Average peak-to-trough decline	-31.22%	-11.93%	-19.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.41%	3.05%	+4.36%

Volatility

FXI vs. EFA - Volatility Comparison

iShares China Large-Cap ETF (FXI) has a higher volatility of 6.70% compared to iShares MSCI EAFE ETF (EFA) at 4.54%. This indicates that FXI'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.

Volatility by Period

	FXI	EFA	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.70%	4.54%	+2.16%
Volatility (6M) Calculated over the trailing 6-month period	14.46%	12.82%	+1.64%
Volatility (1Y) Calculated over the trailing 1-year period	19.95%	15.31%	+4.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	31.68%	16.52%	+15.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.67%	17.28%	+10.39%

FXI vs. EFA - Expense Ratio Comparison

FXI has a 0.74% expense ratio, which is higher than EFA's 0.32% expense ratio.

Dividends

FXI vs. EFA - Dividend Comparison

FXI's dividend yield for the trailing twelve months is around 2.67%, less than EFA's 3.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EFA iShares MSCI EAFE ETF	3.16%	3.38%	3.24%	2.98%	2.69%	3.33%	2.13%	3.10%	3.39%	2.57%	3.07%	2.76%
FXI iShares China Large-Cap ETF	2.67%	2.42%	1.76%	3.17%	2.61%	1.60%	2.19%	2.74%	2.69%	2.31%	2.69%	2.90%

Frequently Asked Questions

Can I hold both FXI and EFA in my portfolio?

FXI and EFA have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FXI or EFA?

FXI has higher volatility (6.70%) compared to EFA (4.54%). In terms of maximum drawdown, FXI dropped -72.68% vs EFA's -61.04%.

Which ETF is better, FXI or EFA?

On 10-year performance, EFA leads with 9.28% vs 2.76% for FXI. On fees, EFA is cheaper at 0.32% per year. On volatility, EFA has been the lower-risk option at 4.54%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXI or EFA?

Over the 10-year period, EFA has performed better with a 9.28% return vs 2.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXI or EFA?

EFA is cheaper with a 0.32% expense ratio, compared with 0.74% for FXI.

Which ETF pays a higher dividend yield, FXI or EFA?

EFA has the higher dividend yield at 3.16%, compared with 2.67% for FXI.

What is the main difference between FXI and EFA?

FXI is categorized as China Equities, while EFA is Foreign Large Cap Equities. FXI tracks FTSE China 50 Index, while EFA tracks MSCI EAFE Index (Net). Their fees differ too: 0.74% for FXI and 0.32% for EFA.

Which has better risk-adjusted returns?

EFA currently has the higher Sharpe Ratio (1.23 vs -0.14), 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.