IEFA vs. SCHV

Last updated Jul 21, 2026

IEFA (iShares Core MSCI EAFE ETF) and SCHV (Schwab U.S. Large-Cap Value ETF) are both exchange-traded funds - IEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE IMI Index (Net), while SCHV is a Large Cap Value Equities fund tracking the Dow Jones U.S. Large-Cap Value Total Stock Market Index. Both are passively managed. Over the past 10 years, IEFA returned 9.33%/yr vs 10.94%/yr for SCHV. A 0.78 correlation means they provide meaningful diversification when combined. IEFA charges 0.07%/yr vs 0.04%/yr for SCHV.

Performance

IEFA vs. SCHV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core MSCI EAFE ETF (IEFA) and Schwab U.S. Large-Cap Value ETF (SCHV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IEFA achieves a 8.58% return, which is significantly lower than SCHV's 14.69% return. Over the past 10 years, IEFA has underperformed SCHV with an annualized return of 9.33%, while SCHV has yielded a comparatively higher 10.94% annualized return.

IEFA

• 1D: -0.71%
• 1M: -1.77%
• 6M: 4.73%
• YTD: 8.58%
• 1Y: 19.92%
• 3Y*: 15.19%
• 5Y*: 8.55%
• 10Y*: 9.33%
• ALL TIME*: 8.32%

SCHV

• 1D: -0.47%
• 1M: -2.19%
• 6M: 9.69%
• YTD: 14.69%
• 1Y: 22.64%
• 3Y*: 16.15%
• 5Y*: 10.49%
• 10Y*: 10.94%
• ALL TIME*: 11.54%

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

IEFA vs. SCHV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IEFA iShares Core MSCI EAFE ETF	8.58%	32.08%	3.26%	17.95%	-15.24%	11.63%	8.18%	22.64%	-14.14%	26.57%
SCHV Schwab U.S. Large-Cap Value ETF	14.69%	16.02%	14.13%	8.93%	-7.65%	25.58%	2.64%	25.92%	-7.30%	16.56%

Correlation

The correlation between IEFA and SCHV is 0.73, 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	0.73
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.75
Correlation (10Y) Calculated over the trailing 10-year period	0.75
Correlation (All Time) Calculated using the full available price history since Oct 24, 2012	0.78

The correlation between IEFA and SCHV has been stable across timeframes, ranging from 0.70 to 0.78 - a consistent structural relationship.

IEFA vs. SCHV - Sectors Allocation Comparison

Sectors	IEFA	SCHV
Financial Services	24.2%	18.7%
Industrials	19.4%	13.9%
Technology	12.1%	22.9%
Healthcare	9.6%	11.2%
Consumer Cyclical	7.8%	6.5%
Basic Materials	6.5%	2.5%
Consumer Defensive	6.4%	8.1%
Communication Services	3.7%	2.1%
Energy	3.5%	5.8%
Utilities	3.5%	4.3%
Real Estate	2.7%	3.9%

Return for Risk

IEFA vs. SCHV — Risk / Return Rank

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

IEFA

IEFA Risk / Return Rank: 48
IEFA Sharpe Ratio Rank: 49
IEFA Sortino Ratio Rank: 49
IEFA Omega Ratio Rank: 48
IEFA Calmar Ratio Rank: 45
IEFA Martin Ratio Rank: 52

SCHV

SCHV Risk / Return Rank: 84
SCHV Sharpe Ratio Rank: 84
SCHV Sortino Ratio Rank: 85
SCHV Omega Ratio Rank: 81
SCHV Calmar Ratio Rank: 83
SCHV Martin Ratio Rank: 86

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. SCHV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI EAFE ETF (IEFA) and Schwab U.S. Large-Cap Value ETF (SCHV). 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	SCHV	Difference
Sharpe ratio: Return per unit of total volatility	1.28	2.03	-0.75
Sortino ratio: Return per unit of downside risk	1.87	2.93	-1.05
Omega ratio: Gain probability vs. loss probability	1.23	1.36	-0.12
Calmar ratio: Return relative to maximum drawdown	1.74	3.33	-1.59
Martin ratio: Return relative to average drawdown	6.57	12.95	-6.37

IEFA vs. SCHV - Sharpe Ratio Comparison

The current IEFA Sharpe Ratio is 1.28, which is lower than the SCHV Sharpe Ratio of 2.03. The chart below compares the historical Sharpe Ratios of IEFA and SCHV, 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. SCHV - Drawdown Comparison

The maximum IEFA drawdown since its inception was -34.78%, smaller than the maximum SCHV drawdown of -37.08%. Use the drawdown chart below to compare losses from any high point for IEFA and SCHV.

Drawdown Indicators

	IEFA	SCHV	Difference
Max Drawdown Largest peak-to-trough decline	-34.78%	-37.08%	+2.30%
Max Drawdown (1Y) Largest decline over 1 year	-11.50%	-6.83%	-4.67%
Max Drawdown (3Y) Largest decline over 3 years	-13.76%	-15.26%	+1.50%
Max Drawdown (5Y) Largest decline over 5 years	-30.41%	-19.78%	-10.63%
Max Drawdown (10Y) Largest decline over 10 years	-34.78%	-37.08%	+2.30%
Current Drawdown Current decline from peak	-2.79%	-3.42%	+0.63%
Average Drawdown Average peak-to-trough decline	-6.64%	-3.81%	-2.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.04%	1.75%	+1.29%

Volatility

IEFA vs. SCHV - Volatility Comparison

iShares Core MSCI EAFE ETF (IEFA) has a higher volatility of 3.99% compared to Schwab U.S. Large-Cap Value ETF (SCHV) at 3.33%. This indicates that IEFA's price experiences larger fluctuations and is considered to be riskier than SCHV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IEFA	SCHV	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.99%	3.33%	+0.66%
Volatility (6M) Calculated over the trailing 6-month period	13.45%	8.87%	+4.58%
Volatility (1Y) Calculated over the trailing 1-year period	15.64%	11.21%	+4.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.59%	14.52%	+2.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.01%	16.92%	+0.09%

IEFA vs. SCHV - Expense Ratio Comparison

IEFA has a 0.07% expense ratio, which is higher than SCHV's 0.04% 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. SCHV - Dividend Comparison

IEFA's dividend yield for the trailing twelve months is around 3.44%, more than SCHV's 1.82% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEFA iShares Core MSCI EAFE ETF	3.44%	3.55%	3.47%	3.20%	2.70%	3.32%	1.90%	3.18%	3.46%	2.57%	2.96%	2.63%
SCHV Schwab U.S. Large-Cap Value ETF	1.82%	2.02%	2.25%	2.42%	2.37%	1.93%	3.03%	3.02%	3.05%	2.37%	2.65%	2.69%

Frequently Asked Questions

Can I hold both IEFA and SCHV in my portfolio?

IEFA and SCHV have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IEFA or SCHV?

IEFA has higher volatility (3.99%) compared to SCHV (3.33%). In terms of maximum drawdown, IEFA dropped -34.78% vs SCHV's -37.08%.

Which ETF is better, IEFA or SCHV?

On 10-year performance, SCHV leads with 10.94% vs 9.33% for IEFA. On fees, SCHV is cheaper at 0.04% per year. On volatility, SCHV has been the lower-risk option at 3.33%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEFA or SCHV?

Over the 10-year period, SCHV has performed better with a 10.94% return vs 9.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEFA or SCHV?

SCHV is cheaper with a 0.04% expense ratio, compared with 0.07% for IEFA.

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

IEFA has the higher dividend yield at 3.44%, compared with 1.82% for SCHV.

What is the main difference between IEFA and SCHV?

IEFA is categorized as Foreign Large Cap Equities, while SCHV is Large Cap Value Equities. IEFA tracks MSCI EAFE IMI Index (Net), while SCHV tracks Dow Jones U.S. Large-Cap Value Total Stock Market Index. They also come from different issuers: iShares and Charles Schwab. Their fees differ too: 0.07% for IEFA and 0.04% for SCHV.

Which has better risk-adjusted returns?

SCHV currently has the higher Sharpe Ratio (2.03 vs 1.28), 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.