XRT vs. EFA

Last updated Jun 4, 2026

XRT (SPDR S&P Retail ETF) and EFA (iShares MSCI EAFE ETF) are both exchange-traded funds - XRT is a Consumer Discretionary Equities fund tracking the S&P Retail Select Industry, while EFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE Index (Net). Both are passively managed. Over the past 10 years, XRT returned 8.56%/yr vs 9.11%/yr for EFA. A 0.61 correlation means they provide meaningful diversification when combined. XRT charges 0.35%/yr vs 0.32%/yr for EFA.

Performance

XRT vs. EFA - Performance Comparison

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

Returns By Period

In the year-to-date period, XRT achieves a -1.99% return, which is significantly lower than EFA's 8.42% return. Over the past 10 years, XRT has underperformed EFA with an annualized return of 8.56%, while EFA has yielded a comparatively higher 9.11% annualized return.

XRT

• 1D: -0.39%
• 1M: -0.29%
• YTD: -1.99%
• 6M: -2.00%
• 1Y: 8.44%
• 3Y*: 13.38%
• 5Y*: -0.84%
• 10Y*: 8.56%

EFA

• 1D: -0.86%
• 1M: 3.40%
• YTD: 8.42%
• 6M: 10.94%
• 1Y: 21.06%
• 3Y*: 16.44%
• 5Y*: 8.29%
• 10Y*: 9.11%

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

XRT vs. EFA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XRT SPDR S&P Retail ETF	-1.99%	8.07%	11.78%	21.53%	-31.64%	42.60%	41.91%	14.12%	-8.04%	4.22%
EFA iShares MSCI EAFE ETF	8.42%	31.55%	3.49%	18.36%	-14.39%	11.45%	7.60%	22.04%	-13.82%	25.07%

Correlation

The correlation between XRT and EFA is 0.58, 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	0.58
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (10Y) Calculated over the trailing 10-year period	0.58
Correlation (All Time) Calculated using the full available price history since Jun 23, 2006	0.61

The correlation between XRT and EFA has been stable across timeframes, ranging from 0.58 to 0.62 - a consistent structural relationship.

XRT vs. EFA - Sectors Allocation Comparison

Sectors	XRT	EFA
Consumer Cyclical	73.6%	7.6%
Consumer Defensive	20.9%	6.7%
Communication Services	1.4%	4.5%
Healthcare	1.4%	10.6%
Technology	1.4%	10.4%
Energy	1.4%	4.0%
Basic Materials	-	5.9%
Financial Services	-	24.6%
Industrials	-	19.9%
Real Estate	-	1.9%
Utilities	-	4.0%

Return for Risk

XRT vs. EFA — Risk / Return Rank

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

XRT

XRT Risk / Return Rank: 15
XRT Sharpe Ratio Rank: 15
XRT Sortino Ratio Rank: 15
XRT Omega Ratio Rank: 14
XRT Calmar Ratio Rank: 16
XRT Martin Ratio Rank: 16

EFA

EFA Risk / Return Rank: 39
EFA Sharpe Ratio Rank: 39
EFA Sortino Ratio Rank: 39
EFA Omega Ratio Rank: 38
EFA Calmar Ratio Rank: 37
EFA Martin Ratio Rank: 42

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.

XRT vs. EFA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Retail ETF (XRT) and iShares MSCI EAFE ETF (EFA). 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.

	XRT	EFA	Difference
Sharpe ratio: Return per unit of total volatility	0.42	1.41	-0.99
Sortino ratio: Return per unit of downside risk	0.76	2.04	-1.28
Omega ratio: Gain probability vs. loss probability	1.08	1.26	-0.17
Calmar ratio: Return relative to maximum drawdown	0.63	1.85	-1.23
Martin ratio: Return relative to average drawdown	1.45	6.94	-5.49
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XRT vs. EFA - Sharpe Ratio Comparison

The current XRT Sharpe Ratio is 0.42, which is lower than the EFA Sharpe Ratio of 1.41. The chart below compares the historical Sharpe Ratios of XRT and EFA, 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

	XRT	EFA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.42	1.41	-0.99
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.03	0.51	-0.54
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.32	0.53	-0.21
Sharpe Ratio (All Time) Calculated using the full available price history	0.35	0.31	+0.03

Drawdowns

XRT vs. EFA - Drawdown Comparison

The maximum XRT drawdown since its inception was -65.81%, which is greater than EFA's maximum drawdown of -61.04%. Use the drawdown chart below to compare losses from any high point for XRT and EFA.

Drawdown Indicators

	XRT	EFA	Difference
Max Drawdown Largest peak-to-trough decline	-65.81%	-61.04%	-4.77%
Max Drawdown (1Y) Largest decline over 1 year	-13.53%	-11.42%	-2.11%
Max Drawdown (3Y) Largest decline over 3 years	-25.62%	-14.05%	-11.57%
Max Drawdown (5Y) Largest decline over 5 years	-44.57%	-29.53%	-15.04%
Max Drawdown (10Y) Largest decline over 10 years	-47.02%	-34.19%	-12.83%
Current Drawdown Current decline from peak	-13.82%	-1.46%	-12.36%
Average Drawdown Average peak-to-trough decline	-15.00%	-11.93%	-3.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.85%	3.04%	+2.81%

Volatility

XRT vs. EFA - Volatility Comparison

SPDR S&P Retail ETF (XRT) has a higher volatility of 6.50% compared to iShares MSCI EAFE ETF (EFA) at 4.98%. This indicates that XRT's price experiences larger fluctuations and is considered to be riskier than EFA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XRT	EFA	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.50%	4.98%	+1.52%
Volatility (6M) Calculated over the trailing 6-month period	13.63%	12.51%	+1.12%
Volatility (1Y) Calculated over the trailing 1-year period	20.42%	15.05%	+5.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.90%	16.48%	+10.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.16%	17.26%	+9.90%

XRT vs. EFA - Expense Ratio Comparison

XRT has a 0.35% expense ratio, which is higher than EFA's 0.32% expense ratio.

Dividends

XRT vs. EFA - Dividend Comparison

XRT's dividend yield for the trailing twelve months is around 0.83%, less than EFA's 3.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EFA iShares MSCI EAFE ETF	3.12%	3.38%	3.24%	2.98%	2.69%	3.33%	2.13%	3.10%	3.39%	2.57%	3.07%	2.76%
XRT SPDR S&P Retail ETF	0.83%	0.77%	1.52%	1.40%	2.15%	1.55%	1.01%	1.57%	1.51%	1.52%	1.36%	1.30%

Frequently Asked Questions

Can I hold both XRT and EFA in my portfolio?

XRT and EFA have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XRT or EFA?

XRT has higher volatility (6.50%) compared to EFA (4.98%). In terms of maximum drawdown, XRT dropped -65.81% vs EFA's -61.04%.

Which ETF is better, XRT or EFA?

On 10-year performance, EFA leads with 9.11% vs 8.56% for XRT. On fees, EFA is cheaper at 0.32% per year. On volatility, EFA has been the lower-risk option at 4.98%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XRT or EFA?

Over the 10-year period, EFA has performed better with a 9.11% return vs 8.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XRT or EFA?

EFA is cheaper with a 0.32% expense ratio, compared with 0.35% for XRT.

Which ETF pays a higher dividend yield, XRT or EFA?

EFA has the higher dividend yield at 3.12%, compared with 0.83% for XRT.

What is the main difference between XRT and EFA?

XRT is categorized as Consumer Discretionary Equities, while EFA is Foreign Large Cap Equities. XRT tracks S&P Retail Select Industry, while EFA tracks MSCI EAFE Index (Net). They also come from different issuers: State Street and iShares. Their fees differ too: 0.35% for XRT and 0.32% for EFA.

Which has better risk-adjusted returns?

EFA currently has the higher Sharpe Ratio (1.41 vs 0.42), 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.