ICLN vs. EFA

Last updated Jun 9, 2026

ICLN (iShares Global Clean Energy ETF) and EFA (iShares MSCI EAFE ETF) are both exchange-traded funds - ICLN is a Alternative Energy Equities fund tracking the S&P Global Clean Energy 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, ICLN returned 11.27%/yr vs 9.28%/yr for EFA. A 0.67 correlation means they provide meaningful diversification when combined. ICLN charges 0.39%/yr vs 0.32%/yr for EFA.

Performance

ICLN vs. EFA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Global Clean Energy ETF (ICLN) 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, ICLN achieves a 27.81% return, which is significantly higher than EFA's 7.13% return. Over the past 10 years, ICLN has outperformed EFA with an annualized return of 11.27%, while EFA has yielded a comparatively lower 9.28% annualized return.

ICLN

• 1D: -1.50%
• 1M: -0.76%
• YTD: 27.81%
• 6M: 26.73%
• 1Y: 65.16%
• 3Y*: 5.80%
• 5Y*: 0.12%
• 10Y*: 11.27%

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)

ICLN vs. EFA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ICLN iShares Global Clean Energy ETF	27.81%	47.05%	-25.72%	-20.41%	-5.43%	-24.18%	141.82%	44.36%	-9.03%	21.47%
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 ICLN and EFA is 0.53, 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	0.53
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (10Y) Calculated over the trailing 10-year period	0.61
Correlation (All Time) Calculated using the full available price history since Jun 25, 2008	0.67

The correlation between ICLN and EFA shifts across timeframes, from 0.53 (1 year) to 0.67 (all time), reflecting how their relationship changes across market environments.

ICLN vs. EFA - Sectors Allocation Comparison

Sectors	ICLN	EFA
Utilities	32.8%	4.0%
Industrials	27.8%	19.9%
Energy	26.4%	4.0%
Technology	11.1%	10.4%
Basic Materials	1.1%	5.9%
Consumer Cyclical	0.1%	7.6%
Communication Services	-	4.5%
Consumer Defensive	-	6.7%
Financial Services	-	24.6%
Healthcare	-	10.6%
Real Estate	-	1.9%

Return for Risk

ICLN vs. EFA — Risk / Return Rank

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

ICLN

ICLN Risk / Return Rank: 80
ICLN Sharpe Ratio Rank: 82
ICLN Sortino Ratio Rank: 72
ICLN Omega Ratio Rank: 70
ICLN Calmar Ratio Rank: 92
ICLN Martin Ratio Rank: 85

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.

ICLN vs. EFA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Global Clean Energy ETF (ICLN) 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.

	ICLN	EFA	Difference
Sharpe ratio: Return per unit of total volatility	2.38	1.23	+1.14
Sortino ratio: Return per unit of downside risk	2.93	1.79	+1.14
Omega ratio: Gain probability vs. loss probability	1.37	1.23	+0.15
Calmar ratio: Return relative to maximum drawdown	5.66	1.65	+4.01
Martin ratio: Return relative to average drawdown	16.11	6.15	+9.96
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ICLN vs. EFA - Sharpe Ratio Comparison

The current ICLN Sharpe Ratio is 2.38, which is higher than the EFA Sharpe Ratio of 1.23. The chart below compares the historical Sharpe Ratios of ICLN 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

	ICLN	EFA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.38	1.23	+1.14
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.00	0.49	-0.48
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.41	0.54	-0.12
Sharpe Ratio (All Time) Calculated using the full available price history	-0.09	0.31	-0.40

Drawdowns

ICLN vs. EFA - Drawdown Comparison

The maximum ICLN drawdown since its inception was -87.15%, which is greater than EFA's maximum drawdown of -61.04%. Use the drawdown chart below to compare losses from any high point for ICLN and EFA.

Drawdown Indicators

	ICLN	EFA	Difference
Max Drawdown Largest peak-to-trough decline	-87.15%	-61.04%	-26.11%
Max Drawdown (1Y) Largest decline over 1 year	-11.58%	-11.42%	-0.16%
Max Drawdown (3Y) Largest decline over 3 years	-43.18%	-14.05%	-29.13%
Max Drawdown (5Y) Largest decline over 5 years	-57.16%	-29.53%	-27.63%
Max Drawdown (10Y) Largest decline over 10 years	-66.75%	-34.19%	-32.56%
Current Drawdown Current decline from peak	-42.82%	-2.63%	-40.19%
Average Drawdown Average peak-to-trough decline	-66.59%	-11.93%	-54.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.06%	3.05%	+1.01%

Volatility

ICLN vs. EFA - Volatility Comparison

iShares Global Clean Energy ETF (ICLN) has a higher volatility of 12.28% compared to iShares MSCI EAFE ETF (EFA) at 4.54%. This indicates that ICLN'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

	ICLN	EFA	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.28%	4.54%	+7.74%
Volatility (6M) Calculated over the trailing 6-month period	21.81%	12.82%	+8.99%
Volatility (1Y) Calculated over the trailing 1-year period	27.62%	15.31%	+12.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.43%	16.52%	+10.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.31%	17.28%	+10.03%

ICLN vs. EFA - Expense Ratio Comparison

ICLN has a 0.39% expense ratio, which is higher than EFA's 0.32% expense ratio.

Dividends

ICLN vs. EFA - Dividend Comparison

ICLN's dividend yield for the trailing twelve months is around 1.28%, 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%
ICLN iShares Global Clean Energy ETF	1.28%	1.63%	1.85%	1.59%	0.89%	1.18%	0.34%	1.36%	2.77%	2.49%	3.88%	2.36%

Frequently Asked Questions

Can I hold both ICLN and EFA in my portfolio?

ICLN and EFA have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ICLN or EFA?

ICLN has higher volatility (12.28%) compared to EFA (4.54%). In terms of maximum drawdown, ICLN dropped -87.15% vs EFA's -61.04%.

Which ETF is better, ICLN or EFA?

On 10-year performance, ICLN leads with 11.27% vs 9.28% for EFA. 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, ICLN or EFA?

Over the 10-year period, ICLN has performed better with a 11.27% return vs 9.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ICLN or EFA?

EFA is cheaper with a 0.32% expense ratio, compared with 0.39% for ICLN.

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

EFA has the higher dividend yield at 3.16%, compared with 1.28% for ICLN.

What is the main difference between ICLN and EFA?

ICLN is categorized as Alternative Energy Equities, while EFA is Foreign Large Cap Equities. ICLN tracks S&P Global Clean Energy Index, while EFA tracks MSCI EAFE Index (Net). Their fees differ too: 0.39% for ICLN and 0.32% for EFA.

Which has better risk-adjusted returns?

ICLN currently has the higher Sharpe Ratio (2.38 vs 1.23), 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.