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IEFA vs. SPY
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IEFA vs. SPY

Last updated Jun 13, 2026

IEFA (iShares Core MSCI EAFE ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - IEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE IMI Index (Net), while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, IEFA returned 9.90%/yr vs 15.42%/yr for SPY. A 0.79 correlation means they provide meaningful diversification when combined. IEFA charges 0.07%/yr vs 0.09%/yr for SPY.

Performance

IEFA vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core MSCI EAFE ETF (IEFA) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

The year-to-date returns for both stocks are quite close, with IEFA having a 9.51% return and SPY slightly lower at 9.07%. Over the past 10 years, IEFA has underperformed SPY with an annualized return of 9.90%, while SPY has yielded a comparatively higher 15.42% 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%

SPY

1D
0.54%
1M
-0.08%
YTD
9.07%
6M
9.42%
1Y
24.27%
3Y*
20.86%
5Y*
13.36%
10Y*
15.42%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IEFA vs. SPY - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
SPY
State Street SPDR S&P 500 ETF		9.07%17.72%24.89%26.18%-18.18%28.73%18.33%31.22%-4.57%21.71%

Correlation

The correlation between IEFA and SPY is 0.77, 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

0.77

Correlation (3Y)
Calculated over the trailing 3-year period

0.72

Correlation (5Y)
Calculated over the trailing 5-year period

0.76

Correlation (10Y)
Calculated over the trailing 10-year period

0.78

Correlation (All Time)
Calculated using the full available price history since Oct 24, 2012

0.79

The correlation between IEFA and SPY has been stable across timeframes, ranging from 0.72 to 0.79 - a consistent structural relationship.

IEFA vs. SPY - Sectors Allocation Comparison

Sectors
IEFA
SPY

Financial Services

22.5%
11.8%

Industrials

20.1%
7.8%

Technology

10.8%
35.9%

Healthcare

9.5%
8.4%

Consumer Cyclical

8.0%
10.3%

Basic Materials

7.0%
1.8%

Consumer Defensive

6.6%
4.8%

Communication Services

4.4%
11.3%

Energy

3.8%
3.6%

Utilities

3.6%
2.4%

Real Estate

3.0%
1.9%

Financial Services

IEFA
22.5%
SPY
11.8%

Industrials

IEFA
20.1%
SPY
7.8%

Technology

IEFA
10.8%
SPY
35.9%

Healthcare

IEFA
9.5%
SPY
8.4%

Consumer Cyclical

IEFA
8.0%
SPY
10.3%

Basic Materials

IEFA
7.0%
SPY
1.8%

Consumer Defensive

IEFA
6.6%
SPY
4.8%

Communication Services

IEFA
4.4%
SPY
11.3%

Energy

IEFA
3.8%
SPY
3.6%

Utilities

IEFA
3.6%
SPY
2.4%

Real Estate

IEFA
3.0%
SPY
1.9%

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

State Street SPDR S&P 500 ETF

Often compared with IEFA:
IEFA vs. VEAIEFA vs. VXUSIEFA vs. EFAIEFA vs. FSPSXIEFA vs. IEMGIEFA vs. XEF.TOIEFA vs. IXUS
Often compared with SPY:
SPY vs. QQQSPY vs. VOOSPY vs. BRK-BSPY vs. RSPSPY vs. VTISPY vs. SCHDSPY vs. GLD

Return for Risk

IEFA vs. SPY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IEFA
IEFA Risk / Return Rank: 4444
Overall Rank
IEFA Sharpe Ratio Rank: 4444
Sharpe Ratio Rank
IEFA Sortino Ratio Rank: 4444
Sortino Ratio Rank
IEFA Omega Ratio Rank: 4343
Omega Ratio Rank
IEFA Calmar Ratio Rank: 4242
Calmar Ratio Rank
IEFA Martin Ratio Rank: 4848
Martin Ratio Rank
SPY
SPY Risk / Return Rank: 7070
Overall Rank
SPY Sharpe Ratio Rank: 7171
Sharpe Ratio Rank
SPY Sortino Ratio Rank: 6969
Sortino Ratio Rank
SPY Omega Ratio Rank: 7171
Omega Ratio Rank
SPY Calmar Ratio Rank: 6363
Calmar Ratio Rank
SPY Martin Ratio Rank: 7676
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. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI EAFE ETF (IEFA) and State Street SPDR S&P 500 ETF (SPY). 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.

IEFASPYDifference
Sharpe ratioReturn per unit of total volatility
1.35
1.98

-0.63

Sortino ratioReturn per unit of downside risk
1.97
2.68

-0.71

Omega ratioGain probability vs. loss probability

1.25

1.36

-0.11

Calmar ratioReturn relative to maximum drawdown

1.83

2.74

-0.92

Martin ratioReturn relative to average drawdown

6.93

12.39

-5.46

IEFA vs. SPY - Sharpe Ratio Comparison

The current IEFA Sharpe Ratio is 1.35, which is lower than the SPY Sharpe Ratio of 1.98. The chart below compares the historical Sharpe Ratios of IEFA and SPY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

IEFA vs. SPY - Drawdown Comparison

The maximum IEFA drawdown since its inception was -34.78%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for IEFA and SPY.

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Drawdown Indicators

IEFASPYDifference

Max Drawdown

Largest peak-to-trough decline

-34.78%

-55.19%

+20.41%

Max Drawdown (1Y)

Largest decline over 1 year

-11.50%

-8.88%

-2.62%

Max Drawdown (3Y)

Largest decline over 3 years

-13.76%

-18.76%

+5.00%

Max Drawdown (5Y)

Largest decline over 5 years

-30.41%

-24.50%

-5.91%

Max Drawdown (10Y)

Largest decline over 10 years

-34.78%

-33.72%

-1.06%

Current Drawdown

Current decline from peak

-0.60%

-2.35%

+1.75%

Average Drawdown

Average peak-to-trough decline

-6.68%

-9.04%

+2.36%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.03%

1.97%

+1.06%

Volatility

IEFA vs. SPY - Volatility Comparison

iShares Core MSCI EAFE ETF (IEFA) has a higher volatility of 5.50% compared to State Street SPDR S&P 500 ETF (SPY) at 4.34%. This indicates that IEFA's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

IEFASPYDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.50%

4.34%

+1.16%

Volatility (6M)

Calculated over the trailing 6-month period

13.11%

9.58%

+3.53%

Volatility (1Y)

Calculated over the trailing 1-year period

15.54%

12.29%

+3.25%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.61%

17.12%

-0.51%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

17.31%

17.96%

-0.65%

IEFA vs. SPY - Expense Ratio Comparison

IEFA has a 0.07% expense ratio, which is lower than SPY's 0.09% 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. SPY - Dividend Comparison

IEFA's dividend yield for the trailing twelve months is around 3.24%, more than SPY's 1.00% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
SPY
State Street SPDR S&P 500 ETF		1.00%1.07%1.21%1.40%1.65%1.20%1.52%1.75%2.04%1.80%2.03%2.06%

Frequently Asked Questions

IEFA and SPY have a correlation of 0.77, 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 SPY (4.34%). In terms of maximum drawdown, IEFA dropped -34.78% vs SPY's -55.19%.

On 10-year performance, SPY leads with 15.42% vs 9.90% for IEFA. On fees, IEFA is cheaper at 0.07% per year. On volatility, SPY has been the lower-risk option at 4.34%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, SPY has performed better with a 15.42% return vs 9.90%. 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 0.09% for SPY.

IEFA has the higher dividend yield at 3.24%, compared with 1.00% for SPY.

IEFA is categorized as Foreign Large Cap Equities, while SPY is S&P 500. IEFA tracks MSCI EAFE IMI Index (Net), while SPY tracks S&P 500 Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.07% for IEFA and 0.09% for SPY.

SPY currently has the higher Sharpe Ratio (1.98 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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