ETF Versus

EFA vs TLT

iShares MSCI EAFE ETF vs iShares 20+ Year Treasury Bond ETF

Last updated: 2026-04-02

EFA iShares

iShares MSCI EAFE ETF (EFA) is an exchange-traded fund issued by iShares 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 3.29%. Launched in 2001, the fund has a 25-year track record.

AUM: $69.1B ER: 0.32% Yield: 3.29% Since: Aug 14, 2001
TLT iShares

iShares 20+ Year Treasury Bond ETF (TLT) is an exchange-traded fund issued by iShares that provides exposure to long-duration U.S. Treasury bonds with high interest rate sensitivity. It charges a low expense ratio of 0.15%. The fund offers a high dividend yield of 4.51%. Launched in 2002, the fund has a 24-year track record.

AUM: $41.7B ER: 0.15% Yield: 4.51% Since: Jul 22, 2002

Quick Verdict

TLT is significantly cheaper at 0.15% vs 0.32% expense ratio, saving you approximately $333 per $10,000 invested over 10 years. Over the past year, EFA has significantly outperformed with a 20.5% return vs -5.7%. Income investors may prefer TLT for its higher yield (4.5% vs 3.3%).

Key Metrics

Metric EFA TLT
Expense Ratio 0.32% 0.15%
Dividend Yield 3.3% 4.5%
Fund Family iShares iShares
Category International Developed US Long-Term Treasury

Performance Chart

Indexed to 100 at start (5-year comparison)

60 76 92 108 124 140 2021-04 2022-06 2023-09 2024-12 2026-04
EFA +26.5%
TLT -37.0%

Performance Comparison

Period EFA TLT Difference
1 Month -4.54% -3.74% -0.80%
3 Months +1.62% -0.88% +2.50%
6 Months +3.71% -3.49% +7.20%
YTD +1.62% -0.88% +2.50%
1 Year +20.48% -5.72% +26.20%
3 Years +36.79% -19.08% +55.87%
5 Years +26.46% -37.00% +63.46%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period EFA Fees TLT Fees You Save
$10.000 10 years $631 $298 $333
$10.000 20 years $2.686 $1.278 $1.408
$10.000 30 years $8.571 $4.109 $4.461
$50.000 10 years $3.156 $1.490 $1.666
$50.000 30 years $42.854 $20.547 $22.306
$100.000 30 years $85.707 $41.094 $44.613

Risk Metrics

Based on 5 years of daily returns

Metric EFA TLT
Annualized Volatility 16.6% 15.9%
Max Drawdown -32.4% -46.4%
Sharpe Ratio 0.10 -0.79

Dividend Comparison

Metric EFA TLT
Annual Dividend (per share) $3.25 $3.89
Dividend Yield 3.29% 4.51%
Distribution Frequency Semi-Annual or Annual Monthly

Top Holdings

EFA Top Holdings

NameWeight
ASML Holding N.V.!ams/ASML2.54%
AstraZeneca PLC!lon/AZN1.46%
Novartis AG!swx/NOVN1.41%
Roche Holding AG!swx/ROP1.36%
HSBC Holdings plc!lon/HSBA1.36%
Shell plc!lon/SHEL1.31%
Nestlé S.A.!swx/NESN1.22%
Toyota Motor Corporation!tyo/72031.00%
Commonwealth Bank of Australia!asx/CBA0.99%
Mitsubishi UFJ Financial Group, Inc.!tyo/83060.95%

Which One Should You Choose?

Choose TLT if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose EFA if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose TLT if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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