EFA vs IWM
iShares MSCI EAFE ETF vs iShares Russell 2000 ETF
Last updated: 2026-04-08
iShares MSCI EAFE ETF (EFA) is an exchange-traded fund that provides exposure to equities in developed international markets outside the U.S.. It charges an above-average expense ratio of 0.32%. The fund offers an attractive dividend yield of 3.30%. Launched in 2001, the fund has a 25-year track record.
iShares Russell 2000 ETF (IWM) is an exchange-traded fund that provides exposure to small-cap U.S. equities with higher growth potential and volatility. It charges a moderate expense ratio of 0.19%. The fund offers a moderate dividend yield of 1.00%. Launched in 2000, the fund has a 26-year track record.
Quick Verdict
IWM is significantly cheaper at 0.19% vs 0.32% expense ratio, saving you approximately $254 per $10,000 invested over 10 years. Over the past year, IWM has significantly outperformed with a 44.4% return vs 35.0%. Income investors may prefer EFA for its higher yield (3.3% vs 1.0%).
Key Metrics
Performance Chart
Indexed to 100 at start (5-year comparison)
Performance Comparison
Fee Impact Over Time
Estimated fee cost difference assuming 8% annual returns
Risk Metrics
Based on 5 years of daily returns
Dividend Comparison
Top Holdings
0 of top 10 holdings overlap (0% overlap in top holdings)
EFA Top Holdings
| Name | Weight |
|---|---|
| ASML Holding N.V.!ams/ASML | 2.51% |
| AstraZeneca PLC!lon/AZN | 1.51% |
| Novartis AG!swx/NOVN | 1.41% |
| HSBC Holdings plc!lon/HSBA | 1.39% |
| Roche Holding AG!swx/ROP | 1.35% |
| Shell plc!lon/SHEL | 1.29% |
| Nestlé S.A.!swx/NESN | 1.22% |
| Commonwealth Bank of Australia!asx/CBA | 0.96% |
| Mitsubishi UFJ Financial Group, Inc.!tyo/8306 | 0.95% |
| Toyota Motor Corporation!tyo/7203 | 0.93% |
IWM Top Holdings
| Name | Weight |
|---|---|
| Bloom Energy CorporationBE | 0.99% |
| FabrinetFN | 0.67% |
| COEUR MINING INCCDE.NE | 0.63% |
| EchoStar CorporationSATS | 0.57% |
| Credo Technology Group Holding LtdCRDO | 0.55% |
| Nextpower Inc.NXT | 0.53% |
| Kratos Defense & Security Solutions, Inc.KTOS | 0.45% |
| Advanced Energy Industries, Inc.AEIS | 0.42% |
| Hecla Mining CompanyHL | 0.41% |
| Sterling Infrastructure, Inc.STRL | 0.39% |
Which One Should You Choose?
Choose IWM if...
you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.
Choose IWM if...
recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.
Choose EFA if...
you prioritize dividend income and want higher regular distributions from your portfolio.