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IQLT vs. IEFA
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IQLT vs. IEFA

Last updated Jun 21, 2026

IQLT (iShares MSCI Intl Quality Factor ETF) and IEFA (iShares Core MSCI EAFE ETF) are both Foreign Large Cap Equities funds from iShares - IQLT tracks the MSCI World ex USA Sector Neutral Quality Index (Net) while IEFA tracks the MSCI EAFE IMI Index (Net). Both are passively managed. Over the past 10 years, IQLT returned 9.67%/yr vs 9.55%/yr for IEFA. Their correlation of 0.89 suggests significant overlap in exposure. IQLT charges 0.30%/yr vs 0.07%/yr for IEFA.

Performance

IQLT vs. IEFA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Intl Quality Factor ETF (IQLT) and iShares Core MSCI EAFE ETF (IEFA). 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 investments are quite close, with IQLT having a 10.18% return and IEFA slightly higher at 10.53%. Both investments have delivered pretty close results over the past 10 years, with IQLT having a 9.67% annualized return and IEFA not far behind at 9.55%.

IQLT

1D
0.43%
1M
1.44%
YTD
10.18%
6M
10.87%
1Y
20.80%
3Y*
13.90%
5Y*
7.97%
10Y*
9.67%

IEFA

1D
0.50%
1M
1.71%
YTD
10.53%
6M
11.29%
1Y
25.39%
3Y*
16.23%
5Y*
9.02%
10Y*
9.55%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IQLT vs. IEFA - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IQLT
iShares MSCI Intl Quality Factor ETF		10.18%25.42%1.54%18.73%-15.22%12.94%12.48%28.18%-10.76%24.04%
IEFA
iShares Core MSCI EAFE ETF		10.53%32.08%3.26%17.95%-15.24%11.63%8.18%22.64%-14.14%26.57%

Correlation

The correlation between IQLT and IEFA is 0.97 - 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

0.97

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

0.97

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

0.98

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

0.95

Correlation (All Time)
Calculated using the full available price history since Jan 15, 2015

0.89

The correlation between IQLT and IEFA has been stable across timeframes, ranging from 0.89 to 0.98 - a consistent structural relationship.

IQLT vs. IEFA - Sectors Allocation Comparison

Sectors
IQLT
IEFA

Financial Services

25.0%
22.6%

Industrials

17.7%
20.1%

Technology

13.0%
11.6%

Healthcare

8.7%
9.7%

Consumer Cyclical

8.3%
8.3%

Basic Materials

7.2%
6.8%

Consumer Defensive

6.4%
6.2%

Energy

4.9%
3.6%

Utilities

3.5%
3.5%

Communication Services

3.1%
4.7%

Real Estate

1.5%
2.9%

Financial Services

IQLT
25.0%
IEFA
22.6%

Industrials

IQLT
17.7%
IEFA
20.1%

Technology

IQLT
13.0%
IEFA
11.6%

Healthcare

IQLT
8.7%
IEFA
9.7%

Consumer Cyclical

IQLT
8.3%
IEFA
8.3%

Basic Materials

IQLT
7.2%
IEFA
6.8%

Consumer Defensive

IQLT
6.4%
IEFA
6.2%

Energy

IQLT
4.9%
IEFA
3.6%

Utilities

IQLT
3.5%
IEFA
3.5%

Communication Services

IQLT
3.1%
IEFA
4.7%

Real Estate

IQLT
1.5%
IEFA
2.9%

Compare stocks, funds, or ETFs

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

iShares MSCI Intl Quality Factor ETF

iShares Core MSCI EAFE ETF

Often compared with IQLT:
IQLT vs. VIGIIQLT vs. SPYIQLT vs. ACWXIQLT vs. QEFAIQLT vs. VOOIQLT vs. DIHRXIQLT vs. ACWI
Often compared with IEFA:
IEFA vs. VEAIEFA vs. VXUSIEFA vs. EFAIEFA vs. FSPSXIEFA vs. IEMGIEFA vs. XEF.TOIEFA vs. IXUS

Return for Risk

IQLT vs. IEFA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IQLT
IQLT Risk / Return Rank: 4040
Overall Rank
IQLT Sharpe Ratio Rank: 3939
Sharpe Ratio Rank
IQLT Sortino Ratio Rank: 3939
Sortino Ratio Rank
IQLT Omega Ratio Rank: 3636
Omega Ratio Rank
IQLT Calmar Ratio Rank: 4040
Calmar Ratio Rank
IQLT Martin Ratio Rank: 4646
Martin Ratio Rank
IEFA
IEFA Risk / Return Rank: 4747
Overall Rank
IEFA Sharpe Ratio Rank: 4747
Sharpe Ratio Rank
IEFA Sortino Ratio Rank: 4848
Sortino Ratio Rank
IEFA Omega Ratio Rank: 4747
Omega Ratio Rank
IEFA Calmar Ratio Rank: 4444
Calmar Ratio Rank
IEFA Martin Ratio Rank: 5050
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.

IQLT vs. IEFA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Intl Quality Factor ETF (IQLT) and iShares Core MSCI EAFE ETF (IEFA). 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.

IQLTIEFADifference
Sharpe ratioReturn per unit of total volatility
1.33
1.58

-0.25

Sortino ratioReturn per unit of downside risk
1.95
2.27

-0.32

Omega ratioGain probability vs. loss probability

1.23

1.29

-0.05

Calmar ratioReturn relative to maximum drawdown

1.92

2.12

-0.21

Martin ratioReturn relative to average drawdown

7.29

8.08

-0.79

IQLT vs. IEFA - Sharpe Ratio Comparison

The current IQLT Sharpe Ratio is 1.33, which is comparable to the IEFA Sharpe Ratio of 1.58. The chart below compares the historical Sharpe Ratios of IQLT and IEFA, 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

IQLT vs. IEFA - Drawdown Comparison

The maximum IQLT drawdown since its inception was -32.21%, smaller than the maximum IEFA drawdown of -34.78%. Use the drawdown chart below to compare losses from any high point for IQLT and IEFA.

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Drawdown Indicators

IQLTIEFADifference

Max Drawdown

Largest peak-to-trough decline

-32.21%

-34.78%

+2.57%

Max Drawdown (1Y)

Largest decline over 1 year

-10.38%

-11.50%

+1.12%

Max Drawdown (3Y)

Largest decline over 3 years

-13.18%

-13.76%

+0.58%

Max Drawdown (5Y)

Largest decline over 5 years

-30.24%

-30.41%

+0.17%

Max Drawdown (10Y)

Largest decline over 10 years

-32.21%

-34.78%

+2.57%

Current Drawdown

Current decline from peak

-0.18%

0.00%

-0.18%

Average Drawdown

Average peak-to-trough decline

-6.20%

-6.67%

+0.47%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.72%

3.02%

-0.30%

Volatility

IQLT vs. IEFA - Volatility Comparison

iShares MSCI Intl Quality Factor ETF (IQLT) and iShares Core MSCI EAFE ETF (IEFA) have volatilities of 5.02% and 5.07%, 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.

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Volatility by Period

IQLTIEFADifference

Volatility (1M)

Calculated over the trailing 1-month period

5.02%

5.07%

-0.05%

Volatility (6M)

Calculated over the trailing 6-month period

12.68%

13.10%

-0.42%

Volatility (1Y)

Calculated over the trailing 1-year period

14.90%

15.44%

-0.54%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.54%

16.59%

-0.05%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

16.97%

17.30%

-0.33%

IQLT vs. IEFA - Expense Ratio Comparison

IQLT has a 0.30% expense ratio, which is higher than IEFA's 0.07% expense ratio.

Dividends

IQLT vs. IEFA - Dividend Comparison

IQLT's dividend yield for the trailing twelve months is around 2.42%, less than IEFA's 3.38% yield.

PositionTTM20252024202320222021202020192018201720162015
IEFA
iShares Core MSCI EAFE ETF		3.38%3.55%3.47%3.20%2.70%3.32%1.90%3.18%3.46%2.57%2.96%2.63%
IQLT
iShares MSCI Intl Quality Factor ETF		2.42%2.33%2.87%2.27%3.14%2.24%1.61%2.28%2.72%2.36%2.91%2.78%

Frequently Asked Questions

With a correlation of 0.97, IQLT and IEFA 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.

IEFA has higher volatility (5.07%) compared to IQLT (5.02%). In terms of maximum drawdown, IQLT dropped -32.21% vs IEFA's -34.78%.

On 10-year performance, IQLT leads with 9.67% vs 9.55% for IEFA. On fees, IEFA is cheaper at 0.07% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IQLT has performed better with a 9.67% return vs 9.55%. 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 0.30% for IQLT.

IEFA has the higher dividend yield at 3.38%, compared with 2.42% for IQLT.

IQLT tracks MSCI World ex USA Sector Neutral Quality Index (Net), while IEFA tracks MSCI EAFE IMI Index (Net). Their fees differ too: 0.30% for IQLT and 0.07% for IEFA.

IEFA currently has the higher Sharpe Ratio (1.58 vs 1.33), 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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