ETF Versus

IEFA vs SHY

iShares Core MSCI EAFE ETF vs iShares 1-3 Year Treasury Bond ETF

Last updated: 2026-04-02

IEFA iShares

iShares Core MSCI EAFE ETF (IEFA) is an exchange-traded fund issued by iShares that provides exposure to equities in developed international markets outside the U.S.. It charges a low expense ratio of 0.07%. The fund offers an attractive dividend yield of 3.46%. Launched in 2012, the fund has a 14-year track record.

AUM: $164.3B ER: 0.07% Yield: 3.46% Since: Oct 18, 2012
SHY iShares

iShares 1-3 Year Treasury Bond ETF (SHY) is an exchange-traded fund issued by iShares that provides exposure to short-duration U.S. Treasury bonds with low interest rate risk. It charges a low expense ratio of 0.15%. The fund offers an attractive dividend yield of 3.76%. Launched in 2002, the fund has a 24-year track record.

AUM: $24.6B ER: 0.15% Yield: 3.76% Since: Jul 22, 2002

Quick Verdict

IEFA has a slightly lower expense ratio (0.07% vs 0.15%), saving about $158 per $10,000 over 10 years. Over the past year, IEFA has significantly outperformed with a 21.2% return vs -0.2%.

Key Metrics

Metric IEFA SHY
Expense Ratio 0.07% 0.15%
Dividend Yield 3.5% 3.8%
Fund Family iShares iShares
Category International Developed US Short-Term Treasury

Performance Chart

Indexed to 100 at start (5-year comparison)

70 83 96 109 122 135 2021-04 2022-06 2023-09 2024-12 2026-04
IEFA +24.0%
SHY -4.5%

Performance Comparison

Period IEFA SHY Difference
1 Month -4.68% -0.59% -4.09%
3 Months +1.73% -0.65% +2.38%
6 Months +3.46% -0.57% +4.03%
YTD +1.73% -0.65% +2.38%
1 Year +21.19% -0.19% +21.38%
3 Years +36.36% +0.29% +36.07%
5 Years +23.97% -4.51% +28.48%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IEFA Fees SHY Fees You Save
$10.000 10 years $140 $298 $158
$10.000 20 years $600 $1.278 $677
$10.000 30 years $1.938 $4.109 $2.171
$50.000 10 years $698 $1.490 $792
$50.000 30 years $9.692 $20.547 $10.855
$100.000 30 years $19.383 $41.094 $21.711

Risk Metrics

Based on 5 years of daily returns

Metric IEFA SHY
Annualized Volatility 16.6% 2.1%
Max Drawdown -33.1% -6.7%
Sharpe Ratio 0.07 -2.55

Dividend Comparison

Metric IEFA SHY
Annual Dividend (per share) $3.18 $3.10
Dividend Yield 3.46% 3.76%
Distribution Frequency Semi-Annual or Annual Monthly

Top Holdings

IEFA Top Holdings

NameWeight
ASML Holding N.V.!ams/ASML2.18%
AstraZeneca PLC!lon/AZN1.25%
Novartis AG!swx/NOVN1.21%
Roche Holding AG!swx/ROP1.17%
HSBC Holdings plc!lon/HSBA1.16%
Shell plc!lon/SHEL1.12%
Nestlé S.A.!swx/NESN1.05%
Toyota Motor Corporation!tyo/72030.85%
Commonwealth Bank of Australia!asx/CBA0.85%
Mitsubishi UFJ Financial Group, Inc.!tyo/83060.81%

Which One Should You Choose?

Choose IEFA if...

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

Choose IEFA if...

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

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