IEFA vs. ESGD

Last updated Jul 14, 2026

IEFA (iShares Core MSCI EAFE ETF) and ESGD (iShares ESG Aware MSCI EAFE ETF) are both Foreign Large Cap Equities funds from iShares - IEFA tracks the MSCI EAFE IMI Index (Net) while ESGD tracks the MSCI EAFE Extended ESG Focus Index. Both are passively managed. Over the past 10 years, IEFA returned 9.41%/yr vs 9.69%/yr for ESGD. With a 0.97 correlation, they move nearly in lockstep. IEFA charges 0.07%/yr vs 0.20%/yr for ESGD.

Performance

IEFA vs. ESGD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core MSCI EAFE ETF (IEFA) and iShares ESG Aware MSCI EAFE ETF (ESGD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with IEFA having a 9.24% return and ESGD slightly higher at 9.32%. Both investments have delivered pretty close results over the past 10 years, with IEFA having a 9.41% annualized return and ESGD not far ahead at 9.69%.

IEFA

• 1D: -1.10%
• 1M: -0.25%
• 6M: 5.45%
• YTD: 9.24%
• 1Y: 19.91%
• 3Y*: 15.49%
• 5Y*: 8.40%
• 10Y*: 9.41%

ESGD

• 1D: -1.03%
• 1M: 0.17%
• 6M: 5.46%
• YTD: 9.32%
• 1Y: 19.66%
• 3Y*: 14.83%
• 5Y*: 8.37%
• 10Y*: 9.69%

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

IEFA vs. ESGD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IEFA iShares Core MSCI EAFE ETF	9.24%	32.08%	3.26%	17.95%	-15.24%	11.63%	8.18%	22.64%	-14.14%	26.57%
ESGD iShares ESG Aware MSCI EAFE ETF	9.32%	29.63%	3.95%	18.53%	-15.17%	11.79%	8.20%	23.12%	-13.33%	25.10%

Correlation

The correlation between IEFA and ESGD is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.99
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since Jun 30, 2016	0.97

The correlation between IEFA and ESGD has been stable across timeframes, ranging from 0.97 to 1.00 - a consistent structural relationship.

IEFA vs. ESGD - Sectors Allocation Comparison

Sectors	IEFA	ESGD
Financial Services	25.1%	26.5%
Industrials	18.9%	18.1%
Technology	13.7%	13.9%
Healthcare	10.4%	10.1%
Consumer Cyclical	7.1%	6.3%
Consumer Defensive	6.5%	6.9%
Basic Materials	5.9%	5.4%
Communication Services	3.5%	3.6%
Utilities	3.5%	3.7%
Energy	3.3%	3.4%
Real Estate	1.5%	1.6%

Return for Risk

IEFA vs. ESGD — Risk / Return Rank

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

IEFA

IEFA Risk / Return Rank: 46
IEFA Sharpe Ratio Rank: 46
IEFA Sortino Ratio Rank: 46
IEFA Omega Ratio Rank: 45
IEFA Calmar Ratio Rank: 43
IEFA Martin Ratio Rank: 49

ESGD

ESGD Risk / Return Rank: 44
ESGD Sharpe Ratio Rank: 44
ESGD Sortino Ratio Rank: 44
ESGD Omega Ratio Rank: 43
ESGD Calmar Ratio Rank: 42
ESGD Martin Ratio Rank: 48

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.

IEFA vs. ESGD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI EAFE ETF (IEFA) and iShares ESG Aware MSCI EAFE ETF (ESGD). 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	ESGD	Difference
Sharpe ratio: Return per unit of total volatility	1.28	1.24	+0.04
Sortino ratio: Return per unit of downside risk	1.87	1.82	+0.06
Omega ratio: Gain probability vs. loss probability	1.24	1.23	+0.01
Calmar ratio: Return relative to maximum drawdown	1.74	1.69	+0.05
Martin ratio: Return relative to average drawdown	6.59	6.30	+0.29

IEFA vs. ESGD - Sharpe Ratio Comparison

The current IEFA Sharpe Ratio is 1.28, which is comparable to the ESGD Sharpe Ratio of 1.24. The chart below compares the historical Sharpe Ratios of IEFA and ESGD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

IEFA vs. ESGD - Drawdown Comparison

The maximum IEFA drawdown since its inception was -34.78%, roughly equal to the maximum ESGD drawdown of -33.70%. Use the drawdown chart below to compare losses from any high point for IEFA and ESGD.

Drawdown Indicators

	IEFA	ESGD	Difference
Max Drawdown Largest peak-to-trough decline	-34.78%	-33.70%	-1.08%
Max Drawdown (1Y) Largest decline over 1 year	-11.50%	-11.68%	+0.18%
Max Drawdown (3Y) Largest decline over 3 years	-13.76%	-13.86%	+0.10%
Max Drawdown (5Y) Largest decline over 5 years	-30.41%	-30.03%	-0.38%
Max Drawdown (10Y) Largest decline over 10 years	-34.78%	-33.70%	-1.08%
Current Drawdown Current decline from peak	-2.20%	-2.01%	-0.19%
Average Drawdown Average peak-to-trough decline	-6.65%	-6.14%	-0.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.03%	3.13%	-0.10%

Volatility

IEFA vs. ESGD - Volatility Comparison

iShares Core MSCI EAFE ETF (IEFA) and iShares ESG Aware MSCI EAFE ETF (ESGD) have volatilities of 4.84% and 5.09%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IEFA	ESGD	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.84%	5.09%	-0.25%
Volatility (6M) Calculated over the trailing 6-month period	13.42%	13.66%	-0.24%
Volatility (1Y) Calculated over the trailing 1-year period	15.61%	15.93%	-0.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.61%	16.72%	-0.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.01%	17.02%	-0.01%

IEFA vs. ESGD - Expense Ratio Comparison

IEFA has a 0.07% expense ratio, which is lower than ESGD's 0.20% expense ratio. Despite the difference, 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. ESGD - Dividend Comparison

IEFA's dividend yield for the trailing twelve months is around 3.42%, more than ESGD's 3.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ESGD iShares ESG Aware MSCI EAFE ETF	3.35%	3.60%	3.23%	3.02%	2.59%	2.75%	1.63%	2.57%	2.69%	2.65%	0.09%	0.00%
IEFA iShares Core MSCI EAFE ETF	3.42%	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 IEFA and ESGD in my portfolio?

With a correlation of 0.99, IEFA and ESGD move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, IEFA or ESGD?

ESGD has higher volatility (5.09%) compared to IEFA (4.84%). In terms of maximum drawdown, IEFA dropped -34.78% vs ESGD's -33.70%.

Which ETF is better, IEFA or ESGD?

On 10-year performance, ESGD leads with 9.69% vs 9.41% for IEFA. On fees, IEFA is cheaper at 0.07% per year. On volatility, IEFA has been the lower-risk option at 4.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEFA or ESGD?

Over the 10-year period, ESGD has performed better with a 9.69% return vs 9.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEFA or ESGD?

IEFA is cheaper with a 0.07% expense ratio, compared with 0.20% for ESGD.

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

IEFA has the higher dividend yield at 3.42%, compared with 3.35% for ESGD.

What is the main difference between IEFA and ESGD?

IEFA tracks MSCI EAFE IMI Index (Net), while ESGD tracks MSCI EAFE Extended ESG Focus Index. Their fees differ too: 0.07% for IEFA and 0.20% for ESGD.

Which has better risk-adjusted returns?

IEFA currently has the higher Sharpe Ratio (1.28 vs 1.24), 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.