XEF-U.TO vs. IEFA

Last updated Jul 1, 2026

XEF-U.TO (iShares Core MSCI EAFE IMI Index ETF) and IEFA (iShares Core MSCI EAFE ETF) are both exchange-traded funds - XEF-U.TO is a Global Equities fund tracking the MSCI EAFE® Investable Market 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, XEF-U.TO returned 6.52%/yr vs 9.65%/yr for IEFA. A 0.54 correlation means they provide meaningful diversification when combined. XEF-U.TO charges 0.21%/yr vs 0.07%/yr for IEFA.

Performance

XEF-U.TO vs. IEFA - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with XEF-U.TO having a 9.71% return and IEFA slightly higher at 9.73%. Over the past 10 years, XEF-U.TO has underperformed IEFA with an annualized return of 6.52%, while IEFA has yielded a comparatively higher 9.65% annualized return.

XEF-U.TO

• 1D: 0.58%
• 1M: 0.04%
• YTD: 9.71%
• 6M: 9.26%
• 1Y: 19.86%
• 3Y*: 16.27%
• 5Y*: 8.67%
• 10Y*: 6.52%

IEFA

• 1D: 0.27%
• 1M: 0.14%
• YTD: 9.73%
• 6M: 9.23%
• 1Y: 19.85%
• 3Y*: 16.51%
• 5Y*: 8.69%
• 10Y*: 9.65%

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

XEF-U.TO vs. IEFA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XEF-U.TO iShares Core MSCI EAFE IMI Index ETF	9.71%	31.70%	3.03%	16.71%	-14.95%	11.35%	10.30%	-12.37%	-7.24%	17.11%
IEFA iShares Core MSCI EAFE ETF	9.73%	32.08%	3.26%	17.95%	-15.24%	11.63%	8.18%	22.64%	-14.14%	26.57%

Correlation

The correlation between XEF-U.TO and IEFA is 0.92, 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	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.72
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.52
Correlation (All Time) Calculated using the full available price history since Apr 10, 2013	0.54

Over the past year, XEF-U.TO and IEFA have become more correlated (0.92) than their long-term average of 0.54, meaning their price movements have been converging.

Return for Risk

XEF-U.TO vs. IEFA — Risk / Return Rank

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

XEF-U.TO

XEF-U.TO Risk / Return Rank: 43
XEF-U.TO Sharpe Ratio Rank: 43
XEF-U.TO Sortino Ratio Rank: 43
XEF-U.TO Omega Ratio Rank: 43
XEF-U.TO Calmar Ratio Rank: 39
XEF-U.TO Martin Ratio Rank: 46

IEFA

IEFA Risk / Return Rank: 41
IEFA Sharpe Ratio Rank: 40
IEFA Sortino Ratio Rank: 41
IEFA Omega Ratio Rank: 40
IEFA Calmar Ratio Rank: 39
IEFA Martin Ratio Rank: 45

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.

XEF-U.TO vs. IEFA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI EAFE IMI Index ETF (XEF-U.TO) 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.

	XEF-U.TO	IEFA	Difference
Sharpe ratio: Return per unit of total volatility	1.34	1.29	+0.05
Sortino ratio: Return per unit of downside risk	1.96	1.88	+0.08
Omega ratio: Gain probability vs. loss probability	1.25	1.24	+0.01
Calmar ratio: Return relative to maximum drawdown	1.74	1.73	+0.01
Martin ratio: Return relative to average drawdown	6.64	6.58	+0.06

XEF-U.TO vs. IEFA - Sharpe Ratio Comparison

The current XEF-U.TO Sharpe Ratio is 1.34, which is comparable to the IEFA Sharpe Ratio of 1.29. The chart below compares the historical Sharpe Ratios of XEF-U.TO 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.

Drawdowns

XEF-U.TO vs. IEFA - Drawdown Comparison

The maximum XEF-U.TO drawdown since its inception was -46.92%, which is greater than IEFA's maximum drawdown of -34.78%. Use the drawdown chart below to compare losses from any high point for XEF-U.TO and IEFA.

Drawdown Indicators

	XEF-U.TO	IEFA	Difference
Max Drawdown Largest peak-to-trough decline	-46.92%	-34.78%	-12.14%
Max Drawdown (1Y) Largest decline over 1 year	-11.57%	-11.50%	-0.07%
Max Drawdown (3Y) Largest decline over 3 years	-13.85%	-13.76%	-0.09%
Max Drawdown (5Y) Largest decline over 5 years	-30.71%	-30.41%	-0.30%
Max Drawdown (10Y) Largest decline over 10 years	-46.92%	-34.78%	-12.14%
Current Drawdown Current decline from peak	-0.82%	-0.83%	+0.01%
Average Drawdown Average peak-to-trough decline	-8.20%	-6.66%	-1.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.01%	3.03%	-0.02%

Volatility

XEF-U.TO vs. IEFA - Volatility Comparison

The current volatility for iShares Core MSCI EAFE IMI Index ETF (XEF-U.TO) is 4.99%, while iShares Core MSCI EAFE ETF (IEFA) has a volatility of 5.29%. This indicates that XEF-U.TO experiences smaller price fluctuations and is considered to be less risky than IEFA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XEF-U.TO	IEFA	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.99%	5.29%	-0.30%
Volatility (6M) Calculated over the trailing 6-month period	12.88%	13.26%	-0.38%
Volatility (1Y) Calculated over the trailing 1-year period	15.00%	15.47%	-0.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.20%	16.61%	+0.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.45%	17.02%	+0.43%

XEF-U.TO vs. IEFA - Expense Ratio Comparison

XEF-U.TO has a 0.21% expense ratio, which is higher than IEFA's 0.07% 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

XEF-U.TO vs. IEFA - Dividend Comparison

XEF-U.TO's dividend yield for the trailing twelve months is around 2.36%, less than IEFA's 3.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEFA iShares Core MSCI EAFE ETF	3.41%	3.55%	3.47%	3.20%	2.70%	3.32%	1.90%	3.18%	3.46%	2.57%	2.96%	2.63%
XEF-U.TO iShares Core MSCI EAFE IMI Index ETF	2.36%	2.44%	2.85%	2.76%	2.98%	2.43%	1.86%	2.72%	2.07%	1.62%	1.84%	1.86%

Frequently Asked Questions

Can I hold both XEF-U.TO and IEFA in my portfolio?

With a correlation of 0.92, XEF-U.TO 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.

Which ETF is better, XEF-U.TO or IEFA?

On fees, IEFA is cheaper at 0.07% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XEF-U.TO or IEFA?

IEFA is cheaper with a 0.07% expense ratio, compared with 0.21% for XEF-U.TO.

What is the main difference between XEF-U.TO and IEFA?

XEF-U.TO is categorized as Global Equities, while IEFA is Foreign Large Cap Equities. XEF-U.TO tracks MSCI EAFE® Investable Market Index, while IEFA tracks MSCI EAFE IMI Index (Net). Their fees differ too: 0.21% for XEF-U.TO and 0.07% for IEFA.