EFA vs IVV
EFA vs IVV
iShares MSCI EAFE ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. EFA delivered stronger 1-year returns. EFA offers more diversification with 645 holdings.
Side-by-Side Comparison
| Metric | EFA | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.32% | 0.03% | |
| AUM | $76.6B | $865.2B | |
| Dividend Yield | 3.24% | 1.09% | |
| Holdings | 704 | 508 | |
| YTD Return | +10.98% | +11.54% | |
| 1Y Return | +23.97% | +21.48% | |
| 3Y Return (annualized) | +17.32% | +20.86% | |
| 5Y Return (annualized) | +9.06% | +13.02% | |
| Volatility (annualized) | 16.6% | 15.1% | |
| Max Drawdown | -60.0% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Aug 14, 2001 | May 15, 2000 |
EFA vs IVV Performance
iShares MSCI EAFE ETF (EFA) is a ETF from iShares by BlackRock (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year EFA returned +23.97% while IVV returned +21.48%. Year to date, EFA is up 10.98% versus a gain of 11.54% for IVV.
Over three years, EFA compounded at +17.32% per year against +20.86% for IVV; over five years the annualized figures are +9.06% and +13.02% respectively. Across the full 25-year window we track, IVV has the edge at +6.97% annualized vs +6.75%. 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 15.1% 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 worth weighing if you expect to sell during market stress rather than ride it out.
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 3.24% against 1.09% for IVV.
Holdings Overlap
EFA and IVV share 4 holdings out of 1146 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
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. On a $10,000 investment, that is $29 per year of difference.
Which performed better, EFA or IVV?
Over the past year EFA returned +23.97% vs +21.48% for IVV, so EFA leads on 1-year performance. Over the longest common window we track (25 years), EFA annualized +6.75% vs +6.97% for IVV. Past performance does not guarantee future results.
Which is riskier, EFA or IVV?
EFA has been the more volatile fund at 16.6% annualized versus 15.1% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EFA and IVV?
EFA and IVV share 4 common holdings with a 0.2% weight overlap. Combined, they hold 1146 unique securities.
Which pays a higher dividend, EFA or IVV?
EFA yields 3.24% while IVV yields 1.09%, so EFA currently pays the higher dividend yield.
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