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HEFA vs. IEFA
Performance
Return for Risk
Drawdowns
Volatility
Dividends

HEFA vs. IEFA

Last updated Jul 26, 2026
Documentation

HEFA (iShares Currency Hedged MSCI EAFE ETF) and IEFA (iShares Core MSCI EAFE ETF) are both Foreign Large Cap Equities funds from iShares - HEFA tracks the MSCI EAFE 100% Hedged to USD Index while IEFA tracks the MSCI EAFE IMI Index (Net). Both are passively managed. Over the past 10 years, HEFA returned 12.70%/yr vs 9.38%/yr for IEFA. Their correlation of 0.86 means they have usually moved in the same direction. HEFA charges 0.35%/yr vs 0.07%/yr for IEFA.

Performance

HEFA vs. IEFA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Currency Hedged MSCI EAFE ETF (HEFA) 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, HEFA achieves a 13.57% return, which is significantly higher than IEFA's 9.45% return. Over the past 10 years, HEFA has outperformed IEFA with an annualized return of 12.70%, while IEFA has yielded a comparatively lower 9.38% annualized return.

HEFA

1D
0.51%
1M
0.73%
6M
10.08%
YTD
13.57%
1Y
26.09%
3Y*
18.91%
5Y*
13.96%
10Y*
12.70%
ALL TIME*
10.79%

IEFA

1D
0.61%
1M
0.32%
6M
4.92%
YTD
9.45%
1Y
17.75%
3Y*
15.52%
5Y*
8.55%
10Y*
9.38%
ALL TIME*
8.38%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

PositionAvg. Volume Value (2W)Avg. Volume Value (1M)Avg. Volume Value (3M)

HEFA

iShares Currency Hedged MSCI EAFE ETF
$39.23M$30.73M$26.09M

IEFA

iShares Core MSCI EAFE ETF
$895.79M$960.37M$950.39M

HEFA vs. IEFA - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
HEFA
iShares Currency Hedged MSCI EAFE ETF		13.57%24.58%13.71%20.33%-4.86%19.59%2.09%27.63%-9.33%16.67%
IEFA
iShares Core MSCI EAFE ETF		9.45%32.08%3.26%17.95%-15.24%11.63%8.18%22.64%-14.14%26.57%

Correlation

The correlation between HEFA and IEFA is 0.89, meaning they have usually moved in the same direction, including during past declines.

Correlation
Correlation (1Y)
Focuses on recent behavior, but can change the most.

0.89

Correlation (3Y)
Balances recent behavior with more history.

0.87

Correlation (5Y)
Shows whether the relationship held over a longer period.

0.88

Correlation (10Y)
Provides a long-term view across more market conditions.

0.88

Correlation (All Time)
Calculated using the full available price history since Feb 14, 2014

0.86

The correlation between HEFA and IEFA has been stable across timeframes, ranging from 0.86 to 0.89 - a consistent structural relationship.

HEFA vs. IEFA - Sectors Allocation Comparison

Sectors
HEFA
IEFA

Financial Services

25.9%
25.5%

Industrials

18.9%
19.3%

Technology

12.0%
12.1%

Healthcare

10.4%
10.0%

Consumer Cyclical

7.2%
7.3%

Consumer Defensive

6.8%
6.5%

Basic Materials

5.9%
6.2%

Energy

3.7%
3.7%

Utilities

3.7%
3.5%

Communication Services

3.5%
3.4%

Real Estate

1.7%
2.2%

Financial Services

HEFA
25.9%
IEFA
25.5%

Industrials

HEFA
18.9%
IEFA
19.3%

Technology

HEFA
12.0%
IEFA
12.1%

Healthcare

HEFA
10.4%
IEFA
10.0%

Consumer Cyclical

HEFA
7.2%
IEFA
7.3%

Consumer Defensive

HEFA
6.8%
IEFA
6.5%

Basic Materials

HEFA
5.9%
IEFA
6.2%

Energy

HEFA
3.7%
IEFA
3.7%

Utilities

HEFA
3.7%
IEFA
3.5%

Communication Services

HEFA
3.5%
IEFA
3.4%

Real Estate

HEFA
1.7%
IEFA
2.2%

Compare stocks, funds, or ETFs

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

iShares Currency Hedged MSCI EAFE ETF

iShares Core MSCI EAFE ETF

Often compared with HEFA:
HEFA vs. DBEFHEFA vs. HAWXHEFA vs. FNDFHEFA vs. HSCZHEFA vs. IDMOHEFA vs. HEWJHEFA vs. HEZU
Often compared with IEFA:
IEFA vs. VEAIEFA vs. VXUSIEFA vs. EFAIEFA vs. FSPSXIEFA vs. IEMGIEFA vs. XEF.TOIEFA vs. IXUS

Return for Risk

HEFA vs. IEFA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
HEFA
HEFA Risk / Return Rank: 8383
Overall Rank
HEFA Sharpe Ratio Rank: 8686
Sharpe Ratio Rank
HEFA Sortino Ratio Rank: 8686
Sortino Ratio Rank
HEFA Omega Ratio Rank: 8686
Omega Ratio Rank
HEFA Calmar Ratio Rank: 7676
Calmar Ratio Rank
HEFA Martin Ratio Rank: 8383
Martin Ratio Rank
IEFA
IEFA Risk / Return Rank: 4747
Overall Rank
IEFA Sharpe Ratio Rank: 4747
Sharpe Ratio Rank
IEFA Sortino Ratio Rank: 4747
Sortino Ratio Rank
IEFA Omega Ratio Rank: 4646
Omega Ratio Rank
IEFA Calmar Ratio Rank: 4343
Calmar Ratio Rank
IEFA Martin Ratio Rank: 5151
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.

HEFA vs. IEFA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI EAFE ETF (HEFA) 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.

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.

HEFAIEFADifference
Sharpe ratioReturn per unit of total volatility
2.03
1.14

+0.89

Sortino ratioReturn per unit of downside risk
2.81
1.67

+1.14

Omega ratioGain probability vs. loss probability

1.37

1.21

+0.17

Calmar ratioReturn relative to maximum drawdown

2.77

1.54

+1.24

Martin ratioReturn relative to average drawdown

11.52

5.85

+5.68

HEFA vs. IEFA - Sharpe Ratio Comparison

The current HEFA Sharpe Ratio is 2.03, which is higher than the IEFA Sharpe Ratio of 1.14. The chart below compares the historical Sharpe Ratios of HEFA 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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Drawdowns

HEFA vs. IEFA - Drawdown Comparison

The maximum HEFA drawdown since its inception was -32.39%, smaller than the maximum IEFA drawdown of -34.78%. Use the drawdown chart below to compare losses from any high point for HEFA and IEFA.

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Drawdown Indicators

HEFAIEFADifference

Max Drawdown

Largest peak-to-trough decline

-32.39%

-34.78%

+2.39%

Max Drawdown (1Y)

Largest decline over 1 year

-9.52%

-11.50%

+1.98%

Max Drawdown (3Y)

Largest decline over 3 years

-14.28%

-13.76%

-0.52%

Max Drawdown (5Y)

Largest decline over 5 years

-14.79%

-30.41%

+15.62%

Max Drawdown (10Y)

Largest decline over 10 years

-32.39%

-34.78%

+2.39%

Current Drawdown

Current decline from peak

-1.12%

-2.00%

+0.88%

Average Drawdown

Average peak-to-trough decline

-4.13%

-6.63%

+2.50%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.29%

3.02%

-0.73%

Volatility

HEFA vs. IEFA - Volatility Comparison

The current volatility for iShares Currency Hedged MSCI EAFE ETF (HEFA) is 3.21%, while iShares Core MSCI EAFE ETF (IEFA) has a volatility of 4.00%. This indicates that HEFA 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.

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Volatility by Period

HEFAIEFADifference

Volatility (1M)

Calculated over the trailing 1-month period

3.21%

4.00%

-0.79%

Volatility (6M)

Calculated over the trailing 6-month period

10.72%

13.48%

-2.76%

Volatility (1Y)

Calculated over the trailing 1-year period

13.05%

15.55%

-2.50%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

13.82%

16.59%

-2.77%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

15.66%

17.02%

-1.36%

HEFA vs. IEFA - Expense Ratio Comparison

HEFA has a 0.35% expense ratio, which is higher than IEFA's 0.07% expense ratio.

Dividends

HEFA vs. IEFA - Dividend Comparison

HEFA's dividend yield for the trailing twelve months is around 4.04%, more than IEFA's 3.41% yield.

PositionTTM20252024202320222021202020192018201720162015
HEFA
iShares Currency Hedged MSCI EAFE ETF		4.04%4.40%3.09%3.02%25.14%3.06%2.10%7.56%4.58%2.55%3.17%3.54%
IEFA
iShares Core MSCI EAFE ETF		3.41%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

HEFA and IEFA have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IEFA has higher volatility (4.00%) compared to HEFA (3.21%). In terms of maximum drawdown, HEFA dropped -32.39% vs IEFA's -34.78%.

On 10-year performance, HEFA leads with 12.70% vs 9.38% for IEFA. On fees, IEFA is cheaper at 0.07% per year. On volatility, HEFA has been the lower-risk option at 3.21%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, HEFA has performed better with a 12.70% return vs 9.38%. 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 0.35% for HEFA.

HEFA has the higher dividend yield at 4.04%, compared with 3.41% for IEFA.

HEFA tracks MSCI EAFE 100% Hedged to USD Index, while IEFA tracks MSCI EAFE IMI Index (Net). Their fees differ too: 0.35% for HEFA and 0.07% for IEFA.

HEFA currently has the higher Sharpe Ratio (2.03 vs 1.14), 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.

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