HDMV vs. IEFA

Last updated Jun 3, 2026

HDMV (First Trust Horizon Managed Volatility Developed Intl ETF) and IEFA (iShares Core MSCI EAFE ETF) are both Foreign Large Cap Equities funds. HDMV is actively managed, while IEFA is passively managed. Over the past 5 years, HDMV returned 6.68%/yr vs 8.44%/yr for IEFA. Their correlation of 0.88 suggests significant overlap in exposure. HDMV charges 0.80%/yr vs 0.07%/yr for IEFA.

Performance

HDMV vs. IEFA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Horizon Managed Volatility Developed Intl ETF (HDMV) and iShares Core MSCI EAFE ETF (IEFA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HDMV achieves a 4.93% return, which is significantly lower than IEFA's 9.71% return.

HDMV

• 1D: 0.18%
• 1M: -2.26%
• YTD: 4.93%
• 6M: 6.73%
• 1Y: 9.31%
• 3Y*: 12.88%
• 5Y*: 6.68%
• 10Y*: —

IEFA

• 1D: 0.53%
• 1M: 2.89%
• YTD: 9.71%
• 6M: 12.86%
• 1Y: 21.97%
• 3Y*: 17.03%
• 5Y*: 8.44%
• 10Y*: 9.31%

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

HDMV vs. IEFA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HDMV First Trust Horizon Managed Volatility Developed Intl ETF	4.93%	29.31%	2.99%	9.62%	-11.47%	7.39%	-9.42%	15.00%	-7.60%	27.49%
IEFA iShares Core MSCI EAFE ETF	9.71%	32.08%	3.26%	17.95%	-15.24%	11.63%	8.18%	22.64%	-14.14%	26.57%

Correlation

The correlation between HDMV and IEFA is 0.84, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (All Time) Calculated using the full available price history since Aug 29, 2016	0.88

The correlation between HDMV and IEFA has been stable across timeframes, ranging from 0.84 to 0.88 - a consistent structural relationship.

HDMV vs. IEFA - Sectors Allocation Comparison

Sectors	HDMV	IEFA
Financial Services	24.4%	22.5%
Industrials	15.2%	20.1%
Utilities	14.6%	3.6%
Real Estate	13.8%	3.0%
Consumer Defensive	13.0%	6.6%
Communication Services	9.4%	4.4%
Healthcare	3.1%	9.5%
Consumer Cyclical	2.7%	8.0%
Energy	1.8%	3.8%
Basic Materials	1.0%	7.0%
Technology	0.9%	10.8%

Return for Risk

HDMV vs. IEFA — Risk / Return Rank

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

HDMV

HDMV Risk / Return Rank: 24
HDMV Sharpe Ratio Rank: 24
HDMV Sortino Ratio Rank: 23
HDMV Omega Ratio Rank: 23
HDMV Calmar Ratio Rank: 25
HDMV Martin Ratio Rank: 27

IEFA

IEFA Risk / Return Rank: 42
IEFA Sharpe Ratio Rank: 41
IEFA Sortino Ratio Rank: 42
IEFA Omega Ratio Rank: 41
IEFA Calmar Ratio Rank: 41
IEFA Martin Ratio Rank: 47

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.

HDMV vs. IEFA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Horizon Managed Volatility Developed Intl ETF (HDMV) 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.

	HDMV	IEFA	Difference
Sharpe ratio Return per unit of total volatility	0.84	1.48	-0.64
Sortino ratio Return per unit of downside risk	1.20	2.13	-0.94
Omega ratio Gain probability vs. loss probability	1.16	1.27	-0.11
Calmar ratio Return relative to maximum drawdown	1.21	2.03	-0.82
Martin ratio Return relative to average drawdown	3.80	7.77	-3.97
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HDMV vs. IEFA - Sharpe Ratio Comparison

The current HDMV Sharpe Ratio is 0.84, which is lower than the IEFA Sharpe Ratio of 1.48. The chart below compares the historical Sharpe Ratios of HDMV 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.

Sharpe Ratios by Period

	HDMV	IEFA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.84	1.48	-0.64
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.56	0.51	+0.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.54	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.41	0.51	-0.10

Drawdowns

HDMV vs. IEFA - Drawdown Comparison

The maximum HDMV drawdown since its inception was -32.01%, smaller than the maximum IEFA drawdown of -34.78%. Use the drawdown chart below to compare losses from any high point for HDMV and IEFA.

Drawdown Indicators

	HDMV	IEFA	Difference
Max Drawdown Largest peak-to-trough decline	-32.01%	-34.78%	+2.77%
Max Drawdown (1Y) Largest decline over 1 year	-8.73%	-11.50%	+2.77%
Max Drawdown (3Y) Largest decline over 3 years	-10.33%	-13.76%	+3.43%
Max Drawdown (5Y) Largest decline over 5 years	-24.11%	-30.41%	+6.30%
Max Drawdown (10Y) Largest decline over 10 years	—	-34.78%	—
Current Drawdown Current decline from peak	-5.41%	-0.42%	-4.99%
Average Drawdown Average peak-to-trough decline	-6.77%	-6.69%	-0.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.77%	3.01%	-0.24%

Volatility

HDMV vs. IEFA - Volatility Comparison

The current volatility for First Trust Horizon Managed Volatility Developed Intl ETF (HDMV) is 4.08%, while iShares Core MSCI EAFE ETF (IEFA) has a volatility of 5.00%. This indicates that HDMV experiences smaller price fluctuations and is considered to be less risky than IEFA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HDMV	IEFA	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.08%	5.00%	-0.92%
Volatility (6M) Calculated over the trailing 6-month period	9.38%	12.41%	-3.03%
Volatility (1Y) Calculated over the trailing 1-year period	11.19%	14.97%	-3.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.05%	16.50%	-4.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.24%	17.30%	-4.06%

HDMV vs. IEFA - Expense Ratio Comparison

HDMV has a 0.80% expense ratio, which is higher than IEFA's 0.07% expense ratio.

Dividends

HDMV vs. IEFA - Dividend Comparison

HDMV's dividend yield for the trailing twelve months is around 4.67%, more than IEFA's 3.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HDMV First Trust Horizon Managed Volatility Developed Intl ETF	4.67%	5.09%	3.24%	3.14%	3.53%	3.11%	1.45%	3.63%	2.88%	3.23%	0.18%	0.00%
IEFA iShares Core MSCI EAFE ETF	3.24%	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

Can I hold both HDMV and IEFA in my portfolio?

HDMV and IEFA have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HDMV or IEFA?

IEFA has higher volatility (5.00%) compared to HDMV (4.08%). In terms of maximum drawdown, HDMV dropped -32.01% vs IEFA's -34.78%.

Which ETF is better, HDMV or IEFA?

On 5-year performance, IEFA leads with 8.44% vs 6.68% for HDMV. On fees, IEFA is cheaper at 0.07% per year. On volatility, HDMV has been the lower-risk option at 4.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HDMV or IEFA?

Over the 5-year period, IEFA has performed better with a 8.44% return vs 6.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HDMV or IEFA?

IEFA is cheaper with a 0.07% expense ratio, compared with 0.80% for HDMV.

Which ETF pays a higher dividend yield, HDMV or IEFA?

HDMV has the higher dividend yield at 4.67%, compared with 3.24% for IEFA.

What is the main difference between HDMV and IEFA?

They also come from different issuers: First Trust and iShares. Their fees differ too: 0.80% for HDMV and 0.07% for IEFA.

Which has better risk-adjusted returns?

IEFA currently has the higher Sharpe Ratio (1.48 vs 0.84), 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.