IEFA vs SPY
iShares Core MSCI EAFE ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, IEFA or SPY?
SPY has been ahead.
IEFA has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. IEFA is less concentrated, with 11.8% of the fund in its ten largest positions against 37.8%.
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
| Metric | IEFA | SPY |
|---|---|---|
| Expense Ratio | 0.07%Best | 0.09% |
| AUM | $193.3B | $804.7B |
| Dividend Yield | 3.29% | 0.98% |
| Holdings | 2,640 | 505 |
| YTD Return | +10.09% | +13.81%Best |
| 1Y Return | +16.27% | +16.94%Best |
| 3Y Return (annualized) | +18.55% | +22.84%Best |
| 5Y Return (annualized) | +8.59% | +13.50%Best |
| Volatility (annualized) | 14.3% | 14.2%Best |
| Max Drawdown | -34.8% | -34.1%Best |
| $10,000 over 5 years | $15,099 | $18,836Best |
| Top 10 Weight | 11.8%Best | 37.8% |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Oct 18, 2012 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Oct 22, 2012 to Sep 22, 2026 (13.9 years).
IEFA vs SPY 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 13.9 years both funds cover.
IEFA vs SPY Performance
iShares Core MSCI EAFE ETF (IEFA) is an ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year IEFA returned +16.27% while SPY returned +16.94%. Year to date, IEFA is up 10.09% versus a gain of 13.81% for SPY.
Over three years, IEFA compounded at +18.55% per year against +22.84% for SPY; over five years the annualized figures are +8.59% and +13.50% respectively. Across the full 14-year window we track, SPY has the edge at +13.47% annualized vs +8.26%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IEFA has been the more volatile fund, with annualized monthly volatility of 14.3% compared with 14.2% 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 -34.8% for IEFA and -34.1% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IEFA charges 0.07% per year while SPY charges 0.09%. On a $10,000 position that is $7 vs $9 annually, a gap of $2 per year that compounds over a long holding period. On income, IEFA currently yields 3.29% against 0.98% for SPY.
Holdings Overlap
1.5% of IEFA's money is in holdings SPY also owns. 0.2% of SPY's money is in holdings IEFA also owns.
IEFA and SPY share little of their money.
4 positions in common, counted across the 2,580 positions we hold weights for in IEFA and 504 in SPY, against full books of 2,640 and 505.
What only one of them owns
Our book lists 493 positions for SPY that do not appear in our book for IEFA (99.2% of the fund), and 23 for IEFA that do not appear in SPY (2.3%).
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.
You are not choosing between two funds in isolation.
Whichever of IEFA and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IEFA or SPY?
IEFA has an expense ratio of 0.07% while SPY charges 0.09%. IEFA is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, IEFA or SPY?
Over the past year IEFA returned +16.27% vs +16.94% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (14 years), IEFA annualized +8.26% vs +13.47% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IEFA or SPY?
IEFA has been the more volatile fund at 14.3% annualized versus 14.2% for SPY. Worst drawdown: IEFA -34.8% vs SPY -34.1%.
Should I hold both IEFA and SPY?
IEFA and SPY have a monthly-return correlation of 0.82, 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 IEFA and SPY?
1.5% of IEFA's money is in holdings SPY also owns. 0.2% of SPY's is in holdings IEFA also owns. They hold 4 positions in common, counted across the 2,580 positions we hold weights for in IEFA and 504 in SPY.
Which pays a higher dividend, IEFA or SPY?
IEFA yields 3.29% while SPY yields 0.98%, so IEFA currently pays the higher dividend yield.
Is SPY better than IEFA?
IEFA has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. IEFA is less concentrated, with 11.8% 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.