EFG vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricEFGSPYWinner
Expense Ratio0.34%0.09%
AUM$16.3B$789.1B
Dividend Yield2.24%1.01%
Holdings380505
YTD Return+5.43%+9.93%
1Y Return+14.77%+19.50%
3Y Return (annualized)+10.10%+19.33%
5Y Return (annualized)+3.62%+12.82%
Volatility (annualized)16.9%15.3%
Max Drawdown-58.9%-56.5%
Fund FamilyiShares by BlackRock (US)State Street Investment Management
CategoryEquityEquity
InceptionAug 1, 2005Jan 22, 1993

EFG vs SPY Performance

iShares MSCI EAFE Growth ETF (EFG) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year EFG returned +14.77% while SPY returned +19.50%. Year to date, EFG is up 5.43% versus a gain of 9.93% for SPY.

Over three years, EFG compounded at +10.10% per year against +19.33% for SPY; over five years the annualized figures are +3.62% and +12.82% respectively. Across the full 21-year window we track, SPY has the edge at +8.74% annualized vs +6.11%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

EFG has been the more volatile fund, with annualized monthly volatility of 16.9% 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 -58.9% for EFG 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 0.86. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

EFG charges 0.34% per year while SPY charges 0.09%. On a $10,000 position that is $34 vs $9 annually, a gap of $25 per year that compounds over a long holding period. On income, EFG currently yields 2.24% against 1.01% for SPY.

Holdings Overlap

0.1%overlap

EFG and SPY share 2 holdings out of 858 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in EFGWeight in SPYDifference
DG0.60%0.04%0.56%
IRM0.20%0.05%0.15%

Frequently Asked Questions

Which is cheaper, EFG or SPY?

EFG has an expense ratio of 0.34% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $25 per year of difference.

Which performed better, EFG or SPY?

Over the past year EFG returned +14.77% vs +19.50% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (21 years), EFG annualized +6.11% vs +8.74% for SPY. Past performance does not guarantee future results.

Which is riskier, EFG or SPY?

EFG has been the more volatile fund at 16.9% annualized versus 15.3% for SPY. Worst drawdown: EFG -58.9% vs SPY -56.5%.

Should I hold both EFG and SPY?

EFG and SPY have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between EFG and SPY?

EFG and SPY share 2 common holdings with a 0.1% weight overlap. Combined, they hold 858 unique securities.

Which pays a higher dividend, EFG or SPY?

EFG yields 2.24% while SPY yields 1.01%, so EFG currently pays the higher dividend yield.

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