EFO vs SPY
ProShares Ultra MSCI EAFE vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. EFO delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | EFO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.09% | |
| AUM | $29M | $789.1B | |
| Dividend Yield | 1.61% | 1.01% | |
| Holdings | 7 | 505 | |
| YTD Return | +21.43% | +13.75% | |
| 1Y Return | +42.02% | +22.91% | |
| 3Y Return (annualized) | +26.99% | +21.67% | |
| 5Y Return (annualized) | +9.25% | +13.32% | |
| Volatility (annualized) | 32.2% | 15.3% | |
| Max Drawdown | -63.7% | -56.5% | |
| Fund Family | ProShares | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Jun 4, 2009 | Jan 22, 1993 |
EFO vs SPY Performance
ProShares Ultra MSCI EAFE (EFO) is a ETF from ProShares and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year EFO returned +42.02% while SPY returned +22.91%. Year to date, EFO is up 21.43% versus a gain of 13.75% for SPY.
Over three years, EFO compounded at +26.99% per year against +21.67% for SPY; over five years the annualized figures are +9.25% and +13.32% respectively. Across the full 17-year window we track, EFO has the edge at +8.97% annualized vs +8.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EFO has been the more volatile fund, with annualized monthly volatility of 32.2% compared with 15.3% for SPY. 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 -63.7% for EFO and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EFO charges 0.95% per year while SPY charges 0.09%. On a $10,000 position that is $95 vs $9 annually, a gap of $86 per year that compounds over a long holding period. On income, EFO currently yields 1.61% against 1.01% for SPY.
Holdings Overlap
EFO and SPY share 0 holdings out of 504 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, EFO or SPY?
EFO has an expense ratio of 0.95% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $86 per year of difference.
Which performed better, EFO or SPY?
Over the past year EFO returned +42.02% vs +22.91% for SPY, so EFO leads on 1-year performance. Over the longest common window we track (17 years), EFO annualized +8.97% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, EFO or SPY?
EFO has been the more volatile fund at 32.2% annualized versus 15.3% for SPY. Worst drawdown: EFO -63.7% vs SPY -56.5%.
Should I hold both EFO and SPY?
EFO and SPY have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EFO and SPY?
EFO and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 504 unique securities.
Which pays a higher dividend, EFO or SPY?
EFO yields 1.61% while SPY yields 1.01%, so EFO currently pays the higher dividend yield.
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