PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
IEFA vs. HEFA
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IEFA vs. HEFA

Last updated Jul 26, 2026
Documentation

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

Performance

IEFA vs. HEFA - Performance Comparison

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

Loading charts...

Returns By Period

In the year-to-date period, IEFA achieves a 9.45% return, which is significantly lower than HEFA's 13.57% return. Over the past 10 years, IEFA has underperformed HEFA with an annualized return of 9.38%, while HEFA has yielded a comparatively higher 12.70% annualized return.

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%

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%
*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

IEFA vs. HEFA - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
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%

Correlation

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

IEFA vs. HEFA - Sectors Allocation Comparison

Sectors
IEFA
HEFA

Financial Services

25.5%
25.9%

Industrials

19.3%
18.9%

Technology

12.1%
12.0%

Healthcare

10.0%
10.4%

Consumer Cyclical

7.3%
7.2%

Consumer Defensive

6.5%
6.8%

Basic Materials

6.2%
5.9%

Energy

3.7%
3.7%

Utilities

3.5%
3.7%

Communication Services

3.4%
3.5%

Real Estate

2.2%
1.7%

Financial Services

IEFA
25.5%
HEFA
25.9%

Industrials

IEFA
19.3%
HEFA
18.9%

Technology

IEFA
12.1%
HEFA
12.0%

Healthcare

IEFA
10.0%
HEFA
10.4%

Consumer Cyclical

IEFA
7.3%
HEFA
7.2%

Consumer Defensive

IEFA
6.5%
HEFA
6.8%

Basic Materials

IEFA
6.2%
HEFA
5.9%

Energy

IEFA
3.7%
HEFA
3.7%

Utilities

IEFA
3.5%
HEFA
3.7%

Communication Services

IEFA
3.4%
HEFA
3.5%

Real Estate

IEFA
2.2%
HEFA
1.7%

Compare stocks, funds, or ETFs

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

iShares Core MSCI EAFE ETF

iShares Currency Hedged MSCI EAFE ETF

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

Return for Risk

IEFA vs. HEFA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
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
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
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. HEFA - Risk-Adjusted Trends Comparison

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

IEFAHEFADifference
Sharpe ratioReturn per unit of total volatility
1.14
2.03

-0.89

Sortino ratioReturn per unit of downside risk
1.67
2.81

-1.14

Omega ratioGain probability vs. loss probability

1.21

1.37

-0.17

Calmar ratioReturn relative to maximum drawdown

1.54

2.77

-1.24

Martin ratioReturn relative to average drawdown

5.85

11.52

-5.68

IEFA vs. HEFA - Sharpe Ratio Comparison

The current IEFA Sharpe Ratio is 1.14, which is lower than the HEFA Sharpe Ratio of 2.03. The chart below compares the historical Sharpe Ratios of IEFA and HEFA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Loading charts...

Drawdowns

IEFA vs. HEFA - Drawdown Comparison

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

Loading charts...

Drawdown Indicators

IEFAHEFADifference

Max Drawdown

Largest peak-to-trough decline

-34.78%

-32.39%

-2.39%

Max Drawdown (1Y)

Largest decline over 1 year

-11.50%

-9.52%

-1.98%

Max Drawdown (3Y)

Largest decline over 3 years

-13.76%

-14.28%

+0.52%

Max Drawdown (5Y)

Largest decline over 5 years

-30.41%

-14.79%

-15.62%

Max Drawdown (10Y)

Largest decline over 10 years

-34.78%

-32.39%

-2.39%

Current Drawdown

Current decline from peak

-2.00%

-1.12%

-0.88%

Average Drawdown

Average peak-to-trough decline

-6.63%

-4.13%

-2.50%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.02%

2.29%

+0.73%

Volatility

IEFA vs. HEFA - Volatility Comparison

iShares Core MSCI EAFE ETF (IEFA) has a higher volatility of 4.00% compared to iShares Currency Hedged MSCI EAFE ETF (HEFA) at 3.21%. This indicates that IEFA's price experiences larger fluctuations and is considered to be riskier than HEFA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

IEFAHEFADifference

Volatility (1M)

Calculated over the trailing 1-month period

4.00%

3.21%

+0.79%

Volatility (6M)

Calculated over the trailing 6-month period

13.48%

10.72%

+2.76%

Volatility (1Y)

Calculated over the trailing 1-year period

15.55%

13.05%

+2.50%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.59%

13.82%

+2.77%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

17.02%

15.66%

+1.36%

IEFA vs. HEFA - Expense Ratio Comparison

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

Dividends

IEFA vs. HEFA - Dividend Comparison

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

IEFA and HEFA 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, IEFA dropped -34.78% vs HEFA's -32.39%.

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.

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

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.

Portfolio Optimizer

Find the right allocation for IEFA and HEFA

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer