IYW vs. IEFA
IYW (iShares U.S. Technology ETF) and IEFA (iShares Core MSCI EAFE ETF) are both exchange-traded funds - IYW is a Technology Equities fund tracking the Russell 1000 Technology RIC 22.5/45 Capped Index, while IEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE IMI Index (Net). Both are passively managed. Over the past 10 years, IYW returned 25.53%/yr vs 9.37%/yr for IEFA. A 0.66 correlation means they provide meaningful diversification when combined. IYW charges 0.38%/yr vs 0.07%/yr for IEFA.
Performance
IYW vs. IEFA - Performance Comparison
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Returns By Period
In the year-to-date period, IYW achieves a 22.81% return, which is significantly higher than IEFA's 7.49% return. Over the past 10 years, IYW has outperformed IEFA with an annualized return of 25.53%, while IEFA has yielded a comparatively lower 9.37% annualized return.
IYW
- 1D
- 1.61%
- 1M
- 2.72%
- YTD
- 22.81%
- 6M
- 20.20%
- 1Y
- 50.11%
- 3Y*
- 33.35%
- 5Y*
- 21.56%
- 10Y*
- 25.53%
IEFA
- 1D
- 0.63%
- 1M
- -1.17%
- YTD
- 7.49%
- 6M
- 10.04%
- 1Y
- 19.61%
- 3Y*
- 16.13%
- 5Y*
- 7.82%
- 10Y*
- 9.37%
IYW vs. IEFA - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IYW iShares U.S. Technology ETF | 22.81% | 25.38% | 30.25% | 65.44% | -34.83% | 35.44% | 47.45% | 46.64% | -0.93% | 36.60% |
IEFA iShares Core MSCI EAFE ETF | 7.49% | 32.08% | 3.26% | 17.95% | -15.24% | 11.63% | 8.18% | 22.64% | -14.14% | 26.57% |
Correlation
The correlation between IYW and IEFA is 0.59, 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 | 0.59 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.57 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.64 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.65 |
Correlation (All Time) Calculated using the full available price history since Oct 24, 2012 | 0.66 |
The correlation between IYW and IEFA has been stable across timeframes, ranging from 0.57 to 0.66 - a consistent structural relationship.
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Return for Risk
IYW vs. IEFA — Risk / Return Rank
IYW
IEFA
IYW vs. IEFA - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Technology ETF (IYW) 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.
| IYW | IEFA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.10 | ||
| Sortino ratioReturn per unit of downside risk | +1.09 | ||
| Omega ratioGain probability vs. loss probability | 1.40 | 1.24 | +0.16 |
| Calmar ratioReturn relative to maximum drawdown | 2.83 | 1.71 | +1.11 |
| Martin ratioReturn relative to average drawdown | 9.20 | 6.52 | +2.69 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| IYW | IEFA | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.40 | 1.30 | +1.10 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.83 | 0.47 | +0.36 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.02 | 0.54 | +0.47 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.35 | 0.50 | -0.16 |
Drawdowns
IYW vs. IEFA - Drawdown Comparison
The maximum IYW drawdown since its inception was -81.90%, which is greater than IEFA's maximum drawdown of -34.78%. Use the drawdown chart below to compare losses from any high point for IYW and IEFA.
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Drawdown Indicators
| IYW | IEFA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -81.90% | -34.78% | -47.12% |
Max Drawdown (1Y)Largest decline over 1 year | -17.81% | -11.50% | -6.31% |
Max Drawdown (3Y)Largest decline over 3 years | -26.47% | -13.76% | -12.71% |
Max Drawdown (5Y)Largest decline over 5 years | -39.44% | -30.41% | -9.03% |
Max Drawdown (10Y)Largest decline over 10 years | -39.44% | -34.78% | -4.66% |
Current DrawdownCurrent decline from peak | -5.70% | -2.44% | -3.26% |
Average DrawdownAverage peak-to-trough decline | -34.64% | -6.69% | -27.95% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.46% | 3.02% | +2.44% |
Volatility
IYW vs. IEFA - Volatility Comparison
iShares U.S. Technology ETF (IYW) has a higher volatility of 8.86% compared to iShares Core MSCI EAFE ETF (IEFA) at 4.54%. This indicates that IYW's price experiences larger fluctuations and is considered to be riskier than IEFA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IYW | IEFA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.86% | 4.54% | +4.32% |
Volatility (6M)Calculated over the trailing 6-month period | 17.10% | 12.74% | +4.36% |
Volatility (1Y)Calculated over the trailing 1-year period | 21.05% | 15.22% | +5.83% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 26.01% | 16.55% | +9.46% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 25.18% | 17.32% | +7.86% |
IYW vs. IEFA - Expense Ratio Comparison
IYW has a 0.38% expense ratio, which is higher than IEFA's 0.07% expense ratio.
Dividends
IYW vs. IEFA - Dividend Comparison
IYW's dividend yield for the trailing twelve months is around 0.11%, less than IEFA's 3.30% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEFA iShares Core MSCI EAFE ETF | 3.30% | 3.55% | 3.47% | 3.20% | 2.70% | 3.32% | 1.90% | 3.18% | 3.46% | 2.57% | 2.96% | 2.63% |
IYW iShares U.S. Technology ETF | 0.11% | 0.14% | 0.21% | 0.34% | 0.50% | 0.31% | 0.56% | 0.72% | 0.92% | 0.82% | 1.14% | 1.12% |
Frequently Asked Questions
IYW and IEFA have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYW has higher volatility (8.86%) compared to IEFA (4.54%). In terms of maximum drawdown, IYW dropped -81.90% vs IEFA's -34.78%.
On 10-year performance, IYW leads with 25.53% vs 9.37% for IEFA. On fees, IEFA is cheaper at 0.07% per year. On volatility, IEFA has been the lower-risk option at 4.54%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IYW has performed better with a 25.53% return vs 9.37%. 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 0.38% for IYW.
IEFA has the higher dividend yield at 3.30%, compared with 0.11% for IYW.
IYW is categorized as Technology Equities, while IEFA is Foreign Large Cap Equities. IYW tracks Russell 1000 Technology RIC 22.5/45 Capped Index, while IEFA tracks MSCI EAFE IMI Index (Net). Their fees differ too: 0.38% for IYW and 0.07% for IEFA.
IYW currently has the higher Sharpe Ratio (2.40 vs 1.30), 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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