IEFA vs. SCZ

Last updated Jun 4, 2026

IEFA (iShares Core MSCI EAFE ETF) and SCZ (iShares MSCI EAFE Small-Cap ETF) are both exchange-traded funds - IEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE IMI Index (Net), while SCZ is a Foreign Small & Mid Cap Equities fund tracking the MSCI EAFE Small Cap Index. Both are passively managed. Over the past 10 years, IEFA returned 9.22%/yr vs 8.03%/yr for SCZ. With a 0.95 correlation, they move nearly in lockstep. IEFA charges 0.07%/yr vs 0.40%/yr for SCZ.

Performance

IEFA vs. SCZ - Performance Comparison

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

Returns By Period

In the year-to-date period, IEFA achieves a 8.85% return, which is significantly lower than SCZ's 9.56% return. Over the past 10 years, IEFA has outperformed SCZ with an annualized return of 9.22%, while SCZ has yielded a comparatively lower 8.03% annualized return.

IEFA

• 1D: -0.78%
• 1M: 3.43%
• YTD: 8.85%
• 6M: 11.45%
• 1Y: 22.00%
• 3Y*: 16.72%
• 5Y*: 8.07%
• 10Y*: 9.22%

SCZ

• 1D: -0.72%
• 1M: 2.75%
• YTD: 9.56%
• 6M: 12.13%
• 1Y: 24.04%
• 3Y*: 16.13%
• 5Y*: 5.02%
• 10Y*: 8.03%

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

IEFA vs. SCZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IEFA iShares Core MSCI EAFE ETF	8.85%	32.08%	3.26%	17.95%	-15.24%	11.63%	8.18%	22.64%	-14.14%	26.57%
SCZ iShares MSCI EAFE Small-Cap ETF	9.56%	32.08%	1.52%	12.98%	-21.27%	10.12%	11.71%	24.68%	-17.64%	32.72%

Correlation

The correlation between IEFA and SCZ is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Oct 25, 2012	0.95

The correlation between IEFA and SCZ has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

IEFA vs. SCZ - Sectors Allocation Comparison

Sectors	IEFA	SCZ
Financial Services	22.5%	12.5%
Industrials	20.1%	24.6%
Technology	10.8%	9.1%
Healthcare	9.5%	5.5%
Consumer Cyclical	8.0%	11.8%
Basic Materials	7.0%	10.7%
Consumer Defensive	6.6%	5.0%
Communication Services	4.4%	4.1%
Energy	3.8%	3.7%
Utilities	3.6%	2.8%
Real Estate	3.0%	10.3%

Return for Risk

IEFA vs. SCZ — Risk / Return Rank

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

IEFA

IEFA Risk / Return Rank: 41
IEFA Sharpe Ratio Rank: 41
IEFA Sortino Ratio Rank: 41
IEFA Omega Ratio Rank: 41
IEFA Calmar Ratio Rank: 38
IEFA Martin Ratio Rank: 44

SCZ

SCZ Risk / Return Rank: 47
SCZ Sharpe Ratio Rank: 47
SCZ Sortino Ratio Rank: 48
SCZ Omega Ratio Rank: 48
SCZ Calmar Ratio Rank: 42
SCZ 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. SCZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI EAFE ETF (IEFA) and iShares MSCI EAFE Small-Cap ETF (SCZ). 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.

	IEFA	SCZ	Difference
Sharpe ratio: Return per unit of total volatility	1.48	1.67	-0.19
Sortino ratio: Return per unit of downside risk	2.14	2.39	-0.26
Omega ratio: Gain probability vs. loss probability	1.27	1.31	-0.03
Calmar ratio: Return relative to maximum drawdown	1.92	2.11	-0.19
Martin ratio: Return relative to average drawdown	7.34	8.08	-0.74
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IEFA vs. SCZ - Sharpe Ratio Comparison

The current IEFA Sharpe Ratio is 1.48, which is comparable to the SCZ Sharpe Ratio of 1.67. The chart below compares the historical Sharpe Ratios of IEFA and SCZ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	IEFA	SCZ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.48	1.67	-0.19
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.49	0.30	+0.19
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.53	0.46	+0.07
Sharpe Ratio (All Time) Calculated using the full available price history	0.51	0.27	+0.24

Drawdowns

IEFA vs. SCZ - Drawdown Comparison

The maximum IEFA drawdown since its inception was -34.78%, smaller than the maximum SCZ drawdown of -61.86%. Use the drawdown chart below to compare losses from any high point for IEFA and SCZ.

Drawdown Indicators

	IEFA	SCZ	Difference
Max Drawdown Largest peak-to-trough decline	-34.78%	-61.86%	+27.08%
Max Drawdown (1Y) Largest decline over 1 year	-11.50%	-11.43%	-0.07%
Max Drawdown (3Y) Largest decline over 3 years	-13.76%	-15.06%	+1.30%
Max Drawdown (5Y) Largest decline over 5 years	-30.41%	-36.87%	+6.46%
Max Drawdown (10Y) Largest decline over 10 years	-34.78%	-41.07%	+6.29%
Current Drawdown Current decline from peak	-1.20%	-1.79%	+0.59%
Average Drawdown Average peak-to-trough decline	-6.69%	-13.06%	+6.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.01%	2.98%	+0.03%

Volatility

IEFA vs. SCZ - Volatility Comparison

iShares Core MSCI EAFE ETF (IEFA) has a higher volatility of 4.86% compared to iShares MSCI EAFE Small-Cap ETF (SCZ) at 4.57%. This indicates that IEFA's price experiences larger fluctuations and is considered to be riskier than SCZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IEFA	SCZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.86%	4.57%	+0.29%
Volatility (6M) Calculated over the trailing 6-month period	12.42%	11.95%	+0.47%
Volatility (1Y) Calculated over the trailing 1-year period	14.96%	14.47%	+0.49%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.51%	16.74%	-0.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.30%	17.43%	-0.13%

IEFA vs. SCZ - Expense Ratio Comparison

IEFA has a 0.07% expense ratio, which is lower than SCZ's 0.40% expense ratio.

Dividends

IEFA vs. SCZ - Dividend Comparison

IEFA's dividend yield for the trailing twelve months is around 3.26%, more than SCZ's 3.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEFA iShares Core MSCI EAFE ETF	3.26%	3.55%	3.47%	3.20%	2.70%	3.32%	1.90%	3.18%	3.46%	2.57%	2.96%	2.63%
SCZ iShares MSCI EAFE Small-Cap ETF	3.01%	3.30%	3.50%	2.96%	1.99%	2.96%	1.52%	3.52%	2.79%	2.38%	2.82%	2.06%

Frequently Asked Questions

Can I hold both IEFA and SCZ in my portfolio?

With a correlation of 0.94, IEFA and SCZ 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 SCZ?

IEFA has higher volatility (4.86%) compared to SCZ (4.57%). In terms of maximum drawdown, IEFA dropped -34.78% vs SCZ's -61.86%.

Which ETF is better, IEFA or SCZ?

On 10-year performance, IEFA leads with 9.22% vs 8.03% for SCZ. On fees, IEFA is cheaper at 0.07% per year. On volatility, SCZ has been the lower-risk option at 4.57%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEFA or SCZ?

Over the 10-year period, IEFA has performed better with a 9.22% return vs 8.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEFA or SCZ?

IEFA is cheaper with a 0.07% expense ratio, compared with 0.40% for SCZ.

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

IEFA has the higher dividend yield at 3.26%, compared with 3.01% for SCZ.

What is the main difference between IEFA and SCZ?

IEFA is categorized as Foreign Large Cap Equities, while SCZ is Foreign Small & Mid Cap Equities. IEFA tracks MSCI EAFE IMI Index (Net), while SCZ tracks MSCI EAFE Small Cap Index. Their fees differ too: 0.07% for IEFA and 0.40% for SCZ.

Which has better risk-adjusted returns?

SCZ currently has the higher Sharpe Ratio (1.67 vs 1.48), 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.