IEFA vs. BND
IEFA (iShares Core MSCI EAFE ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - IEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE IMI Index (Net), while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Both are passively managed. Over the past 10 years, IEFA returned 9.78%/yr vs 1.57%/yr for BND. At a 0.04 correlation, their price movements are largely independent. IEFA charges 0.07%/yr vs 0.03%/yr for BND.
Performance
IEFA vs. BND - Performance Comparison
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Returns By Period
In the year-to-date period, IEFA achieves a 10.18% return, which is significantly higher than BND's 0.60% return. Over the past 10 years, IEFA has outperformed BND with an annualized return of 9.78%, while BND has yielded a comparatively lower 1.57% annualized return.
IEFA
- 1D
- 0.61%
- 1M
- 3.53%
- YTD
- 10.18%
- 6M
- 11.10%
- 1Y
- 23.18%
- 3Y*
- 16.11%
- 5Y*
- 8.34%
- 10Y*
- 9.78%
BND
- 1D
- 0.08%
- 1M
- 1.11%
- YTD
- 0.60%
- 6M
- 0.87%
- 1Y
- 4.86%
- 3Y*
- 4.03%
- 5Y*
- 0.16%
- 10Y*
- 1.57%
IEFA vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IEFA iShares Core MSCI EAFE ETF | 10.18% | 32.08% | 3.26% | 17.95% | -15.24% | 11.63% | 8.18% | 22.64% | -14.14% | 26.57% |
BND Vanguard Total Bond Market ETF | 0.60% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 3.57% |
Correlation
The correlation between IEFA and BND is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.44 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.36 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.26 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.11 |
Correlation (All Time) Calculated using the full available price history since Oct 24, 2012 | 0.04 |
Over the past year, IEFA and BND have become more correlated (0.44) than their long-term average of 0.04, meaning their price movements have been converging.
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Return for Risk
IEFA vs. BND — Risk / Return Rank
IEFA
BND
IEFA vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI EAFE ETF (IEFA) and Vanguard Total Bond Market ETF (BND). 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.
| IEFA | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.19 | ||
| Sortino ratioReturn per unit of downside risk | +0.20 | ||
| Omega ratioGain probability vs. loss probability | 1.27 | 1.23 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 2.03 | 1.82 | +0.20 |
| Martin ratioReturn relative to average drawdown | 7.69 | 5.29 | +2.40 |
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Drawdowns
IEFA vs. BND - Drawdown Comparison
The maximum IEFA drawdown since its inception was -34.78%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for IEFA and BND.
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Drawdown Indicators
| IEFA | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.78% | -18.58% | -16.20% |
Max Drawdown (1Y)Largest decline over 1 year | -11.50% | -2.68% | -8.82% |
Max Drawdown (3Y)Largest decline over 3 years | -13.76% | -5.92% | -7.84% |
Max Drawdown (5Y)Largest decline over 5 years | -30.41% | -17.91% | -12.50% |
Max Drawdown (10Y)Largest decline over 10 years | -34.78% | -18.58% | -16.20% |
Current DrawdownCurrent decline from peak | 0.00% | -2.04% | +2.04% |
Average DrawdownAverage peak-to-trough decline | -6.68% | -3.06% | -3.62% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.02% | 0.92% | +2.10% |
Volatility
IEFA vs. BND - Volatility Comparison
iShares Core MSCI EAFE ETF (IEFA) has a higher volatility of 5.52% compared to Vanguard Total Bond Market ETF (BND) at 1.28%. This indicates that IEFA's price experiences larger fluctuations and is considered to be riskier than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IEFA | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.52% | 1.28% | +4.24% |
Volatility (6M)Calculated over the trailing 6-month period | 13.12% | 2.74% | +10.38% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.51% | 3.72% | +11.79% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.62% | 6.03% | +10.59% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.31% | 5.53% | +11.78% |
IEFA vs. BND - Expense Ratio Comparison
IEFA has a 0.07% expense ratio, which is higher than BND's 0.03% 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
IEFA vs. BND - Dividend Comparison
IEFA's dividend yield for the trailing twelve months is around 4.90%, more than BND's 3.95% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.95% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
IEFA iShares Core MSCI EAFE ETF | 4.90% | 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
IEFA and BND have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IEFA has higher volatility (5.52%) compared to BND (1.28%). In terms of maximum drawdown, IEFA dropped -34.78% vs BND's -18.58%.
On 10-year performance, IEFA leads with 9.78% vs 1.57% for BND. On fees, BND is cheaper at 0.03% per year. On volatility, BND has been the lower-risk option at 1.28%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IEFA has performed better with a 9.78% return vs 1.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BND is cheaper with a 0.03% expense ratio, compared with 0.07% for IEFA.
IEFA has the higher dividend yield at 4.90%, compared with 3.95% for BND.
IEFA is categorized as Foreign Large Cap Equities, while BND is Total Bond Market. IEFA tracks MSCI EAFE IMI Index (Net), while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.07% for IEFA and 0.03% for BND.
IEFA currently has the higher Sharpe Ratio (1.50 vs 1.31), 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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