IEFA vs. EMB
IEFA (iShares Core MSCI EAFE ETF) and EMB (iShares J.P. Morgan USD Emerging Markets Bond ETF) are both exchange-traded funds - IEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE IMI Index (Net), while EMB is a Emerging Markets Bonds fund tracking the JPMorgan EMBI Global Core Index. Both are passively managed. Over the past 10 years, IEFA returned 9.90%/yr vs 3.39%/yr for EMB. A 0.51 correlation means they provide meaningful diversification when combined. IEFA charges 0.07%/yr vs 0.39%/yr for EMB.
Performance
IEFA vs. EMB - Performance Comparison
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Returns By Period
In the year-to-date period, IEFA achieves a 9.51% return, which is significantly higher than EMB's 2.29% return. Over the past 10 years, IEFA has outperformed EMB with an annualized return of 9.90%, while EMB has yielded a comparatively lower 3.39% annualized return.
IEFA
- 1D
- 0.18%
- 1M
- 0.85%
- YTD
- 9.51%
- 6M
- 11.08%
- 1Y
- 20.89%
- 3Y*
- 16.31%
- 5Y*
- 8.10%
- 10Y*
- 9.90%
EMB
- 1D
- 0.09%
- 1M
- 1.29%
- YTD
- 2.29%
- 6M
- 2.72%
- 1Y
- 10.83%
- 3Y*
- 9.63%
- 5Y*
- 1.79%
- 10Y*
- 3.39%
IEFA vs. EMB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IEFA iShares Core MSCI EAFE ETF | 9.51% | 32.08% | 3.26% | 17.95% | -15.24% | 11.63% | 8.18% | 22.64% | -14.14% | 26.57% |
EMB iShares J.P. Morgan USD Emerging Markets Bond ETF | 2.29% | 13.85% | 5.54% | 10.62% | -18.63% | -2.23% | 5.42% | 15.48% | -5.47% | 10.28% |
Correlation
The correlation between IEFA and EMB is 0.64, 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 | 0.64 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.60 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.58 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.54 |
Correlation (All Time) Calculated using the full available price history since Oct 24, 2012 | 0.51 |
The correlation between IEFA and EMB shifts across timeframes, from 0.51 (all time) to 0.64 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
IEFA vs. EMB — Risk / Return Rank
IEFA
EMB
IEFA vs. EMB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI EAFE ETF (IEFA) and iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB). 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 | EMB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.57 | ||
| Sortino ratioReturn per unit of downside risk | -0.84 | ||
| Omega ratioGain probability vs. loss probability | 1.25 | 1.37 | -0.12 |
| Calmar ratioReturn relative to maximum drawdown | 1.83 | 2.41 | -0.59 |
| Martin ratioReturn relative to average drawdown | 6.93 | 10.28 | -3.35 |
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Drawdowns
IEFA vs. EMB - Drawdown Comparison
The maximum IEFA drawdown since its inception was -34.78%, roughly equal to the maximum EMB drawdown of -34.70%. Use the drawdown chart below to compare losses from any high point for IEFA and EMB.
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Drawdown Indicators
| IEFA | EMB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.78% | -34.70% | -0.08% |
Max Drawdown (1Y)Largest decline over 1 year | -11.50% | -4.51% | -6.99% |
Max Drawdown (3Y)Largest decline over 3 years | -13.76% | -7.95% | -5.81% |
Max Drawdown (5Y)Largest decline over 5 years | -30.41% | -28.74% | -1.67% |
Max Drawdown (10Y)Largest decline over 10 years | -34.78% | -28.74% | -6.04% |
Current DrawdownCurrent decline from peak | -0.60% | 0.00% | -0.60% |
Average DrawdownAverage peak-to-trough decline | -6.68% | -5.05% | -1.63% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.03% | 1.06% | +1.97% |
Volatility
IEFA vs. EMB - Volatility Comparison
iShares Core MSCI EAFE ETF (IEFA) has a higher volatility of 5.50% compared to iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) at 2.02%. This indicates that IEFA's price experiences larger fluctuations and is considered to be riskier than EMB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IEFA | EMB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.50% | 2.02% | +3.48% |
Volatility (6M)Calculated over the trailing 6-month period | 13.11% | 4.66% | +8.45% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.54% | 5.67% | +9.87% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.61% | 9.76% | +6.85% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.31% | 9.96% | +7.35% |
IEFA vs. EMB - Expense Ratio Comparison
IEFA has a 0.07% expense ratio, which is lower than EMB's 0.39% expense ratio.
Dividends
IEFA vs. EMB - Dividend Comparison
IEFA's dividend yield for the trailing twelve months is around 3.24%, less than EMB's 5.03% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EMB iShares J.P. Morgan USD Emerging Markets Bond ETF | 5.03% | 4.98% | 5.46% | 4.74% | 5.04% | 3.89% | 3.88% | 4.51% | 5.64% | 4.54% | 4.83% | 4.84% |
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
IEFA and EMB have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IEFA has higher volatility (5.50%) compared to EMB (2.02%). In terms of maximum drawdown, IEFA dropped -34.78% vs EMB's -34.70%.
On 10-year performance, IEFA leads with 9.90% vs 3.39% for EMB. On fees, IEFA is cheaper at 0.07% per year. On volatility, EMB has been the lower-risk option at 2.02%. 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 9.90% return vs 3.39%. 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 0.39% for EMB.
EMB has the higher dividend yield at 5.03%, compared with 3.24% for IEFA.
IEFA is categorized as Foreign Large Cap Equities, while EMB is Emerging Markets Bonds. IEFA tracks MSCI EAFE IMI Index (Net), while EMB tracks JPMorgan EMBI Global Core Index. Their fees differ too: 0.07% for IEFA and 0.39% for EMB.
EMB currently has the higher Sharpe Ratio (1.92 vs 1.35), 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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