EFA vs IVV

EFA vs IVV

Which is better, EFA or IVV?

Each has led over a different period.

IVV has a lower expense ratio. EFA led over 1Y, IVV over 3Y, 5Y and the full window. EFA is less concentrated, with 13.7% of the fund in its ten largest positions against 37.8%.

Lower Fees: IVVHigher Returns: splitLess Concentrated: EFA

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricEFAIVV
Expense Ratio0.32%0.03%Best
AUM$78.7B$876.4B
Dividend Yield3.14%1.06%
Holdings700508
YTD Return+9.94%+11.03%Best
1Y Return+16.35%Best+15.62%
3Y Return (annualized)+17.53%+20.81%Best
5Y Return (annualized)+8.55%+12.61%Best
Volatility (annualized)16.6%14.9%Best
Max Drawdown-60.0%-56.5%Best
$10,000 over 5 years$15,071$18,109Best
Top 10 Weight13.7%Best37.8%
Fund FamilyiShares by BlackRock (US)iShares by BlackRock (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionAug 14, 2001May 15, 2000

Volatility and max drawdown are measured over the window both funds cover: Aug 17, 2001 to Sep 16, 2026 (25.1 years).

EFA vs IVV growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 25.1 years both funds cover.

EFA vs IVV Performance

iShares MSCI EAFE ETF (EFA) is an ETF from iShares by BlackRock (US) and iShares Core S&P 500 ETF (IVV) is an ETF from iShares by BlackRock (US). Over the past year EFA returned +16.35% while IVV returned +15.62%. Year to date, EFA is up 9.94% versus a gain of 11.03% for IVV.

Over three years, EFA compounded at +17.53% per year against +20.81% for IVV; over five years the annualized figures are +8.55% and +12.61% respectively. Across the full 25-year window we track, IVV has the edge at +8.07% annualized vs +6.68%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

EFA has been the more volatile fund, with annualized monthly volatility of 16.6% compared with 14.9% for IVV. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -60.0% for EFA and -56.5% for IVV. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.85. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

EFA charges 0.32% per year while IVV charges 0.03%. On a $10,000 position that is $32 vs $3 annually, a gap of $29 per year that compounds over a long holding period. On income, EFA currently yields 3.14% against 1.06% for IVV.

Holdings Overlap

EFA already in IVV1.8%
IVV already in EFA0.8%

1.8% of EFA's money is in holdings IVV also owns. 0.8% of IVV's money is in holdings EFA also owns.

EFA and IVV share little of their money.

4 positions in common, counted across the 631 positions we hold weights for in EFA and 490 in IVV, against full books of 700 and 508.

What only one of them owns

Our book lists 478 positions for IVV that do not appear in our book for EFA (97.8% of the fund), and 13 for EFA that do not appear in IVV (2.6%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in EFAWeight in IVVDifference
ROPRoper Technologies Inc.1.37%0.06%1.31%
MRKMerck & Company Inc0.09%0.55%0.46%
DGDollar General Corp.0.28%0.04%0.24%
XTSLABlackrock Cash Funds: Treasury, Sl Agency Shares0.02%0.15%0.13%

You are not choosing between two funds in isolation.

Whichever of EFA and IVV you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

EFAIVV

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, EFA or IVV?

EFA has an expense ratio of 0.32% while IVV charges 0.03%. IVV is the cheaper option, by $29 a year on a $10,000 investment.

Which performed better, EFA or IVV?

Over the past year EFA returned +16.35% vs +15.62% for IVV, so EFA leads on 1-year performance. Over the longest common window we track (25 years), EFA annualized +6.68% vs +8.07% for IVV. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, EFA or IVV?

EFA has been the more volatile fund at 16.6% annualized versus 14.9% for IVV. Worst drawdown: EFA -60.0% vs IVV -56.5%.

Should I hold both EFA and IVV?

EFA and IVV have a monthly-return correlation of 0.85, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between EFA and IVV?

1.8% of EFA's money is in holdings IVV also owns. 0.8% of IVV's is in holdings EFA also owns. They hold 4 positions in common, counted across the 631 positions we hold weights for in EFA and 490 in IVV.

Which pays a higher dividend, EFA or IVV?

EFA yields 3.14% while IVV yields 1.06%, so EFA currently pays the higher dividend yield.

Is IVV better than EFA?

IVV has a lower expense ratio. EFA led over 1Y, IVV over 3Y, 5Y and the full window. EFA is less concentrated, with 13.7% of the fund in its ten largest positions against 37.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.