IEFA vs SPDW: Head-to-Head Comparison
IEFA vs SPDW: iShares Core MSCI EAFE ETF has an expense ratio of 0.07% while SPDR Portfolio Developed World ex-US ETF charges 0.03%. IEFA holds 2,850 securities vs SPDW's 2,500. 5-year returns: 6.20% vs 7.00%.
Last updated: April 2026
International Developed
Quick Verdict
Both ETFs score equally well for beginners (9.5/10). Your choice depends on your specific investment goals.
Side-by-Side Comparison
| Metric | IEFA | SPDW |
|---|---|---|
| Expense Ratio | 0.07% | 0.03% |
| AUM | $110.0B | $18.0B |
| Dividend Yield | 2.80% | 2.80% |
| Holdings | 2,850 | 2,500 |
| 1-Year Return | 8.80% | 10.00% |
| 5-Year Return (Ann.) | 6.20% | 7.00% |
| 10-Year Return (Ann.) | 5.20% | 5.50% |
| Beta | 0.83 | 0.85 |
| P/E Ratio | 15.5 | 15.2 |
IEFA 5-year annualized return is 6.20% compared to SPDW's 7.00%. Over 10 years, IEFA returned 5.20% vs SPDW's 5.50%.
View data table
| Period | IEFA Return | SPDW Return |
|---|---|---|
| YTD | 1.60% | 2.00% |
| 1 Year | 8.80% | 10.00% |
| 3 Year | 3.80% | 5.00% |
| 5 Year | 6.20% | 7.00% |
| 10 Year | 5.20% | 5.50% |
Key Differences Between IEFA and SPDW
IEFA (iShares Core MSCI EAFE ETF) is a international developed fund managed by BlackRock. IEFA tracks the MSCI EAFE index, covering developed market stocks in Europe, Australasia, and the Far East while excluding the U.S. and Canada. It is BlackRock's answer to Vanguard's VEA and offers similar broad international developed market exposure. Beginners who use an iShares-focused brokerage often choose IEFA as their primary international stock fund due to its low cost and massive asset base.
SPDW (SPDR Portfolio Developed World ex-US ETF) is a international developed fund managed by State Street Global Advisors. SPDW provides broad exposure to developed market stocks outside the United States at an ultra-low cost. It covers companies in Europe, Japan, Australia, and other developed economies. For beginners building a globally diversified portfolio, SPDW is one of the cheapest ways to add international developed market exposure.
The most notable differences are in fees (0.07% vs 0.03%), number of holdings (2,850 vs 2,500), and 5-year returns (6.20% vs 7.00%).
IEFA vs SPDW multi-factor comparison: IEFA has a 0.07% expense ratio, 6.20% 5-year return, 2,850 holdings, 0.83 beta, and 2.80% yield. SPDW has 0.03% expense ratio, 7.00% 5-year return, 2,500 holdings, 0.85 beta, and 2.80% yield.
View data table
| Metric | IEFA | SPDW |
|---|---|---|
| Expense Ratio | 0.07% | 0.03% |
| 5-Year Return | 6.20% | 7.00% |
| Holdings | 2,850 | 2,500 |
| Beta | 0.83 | 0.85 |
| Dividend Yield | 2.80% | 2.80% |
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Holdings Overlap Analysis
54%
Holdings Overlap
IEFA and SPDW share 54% of their top holdings. There is moderate overlap, so owning both provides some additional diversification but with diminishing returns.
IEFA and SPDW share 54% of their top holdings (moderate overlap). IEFA has 2,850 total holdings and SPDW has 2,500. Common holdings include NVO, ASML, NSRGY.
View data table
| Metric | IEFA | SPDW |
|---|---|---|
| Overlap | 54% | 54% |
| Unique Holdings | 46% | 46% |
| Total Holdings | 2,850 | 2,500 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
IEFA
Fee cost: $600
SPDW
Fee cost: $258
Over 20 years, the fee difference amounts to $342 on a $10,000 investment. SPDW saves you more in fees over time.
On a $10,000 investment over 20 years at 8% return, IEFA (0.07% fee) grows to $46,009 while SPDW (0.03% fee) grows to $46,351. The fee difference costs $342.
View data table
| Year | IEFA Value | SPDW Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,646 | $14,673 |
| 10 | $21,450 | $21,529 |
| 15 | $31,415 | $31,590 |
| 20 | $46,009 | $46,351 |
Which One Should a Beginner Choose?
Choose IEFA if: You want ishares platform users who want a core international developed markets allocation, investors who specifically want msci eafe exposure for benchmarking purposes, those building a tax-efficient international portfolio in taxable accounts. It's managed by BlackRock with an expense ratio of 0.07%.
Choose SPDW if: You want beginners building a globally diversified two- or three-fund portfolio, cost-conscious investors seeking the cheapest international equity exposure, long-term investors who want exposure to developed markets outside the u.s.. It's managed by State Street Global Advisors with an expense ratio of 0.03%.
Can You Own Both IEFA and SPDW?
With 54% holdings overlap, owning both means you're essentially doubling down on the same stocks. For beginners, we recommend picking one to keep things simple. If you want more diversification, consider pairing your choice with an international ETF like VXUS or a bond ETF like BND instead.
Frequently Asked Questions
Should I buy IEFA or SPDW?▾
Both ETFs score equally well for beginners (9.5/10). Your choice depends on your specific investment goals. However, both are solid options. IEFA is best for investors who want ishares platform users who want a core international developed markets allocation, while SPDW is better suited for beginners building a globally diversified two- or three-fund portfolio.
What is the difference between IEFA and SPDW?▾
IEFA (iShares Core MSCI EAFE ETF) tracks international developed investments with 2,850 holdings and a 0.07% expense ratio. SPDW (SPDR Portfolio Developed World ex-US ETF) focuses on international developed with 2,500 holdings at 0.03%. Their top holdings overlap by 54%.
Can I own both IEFA and SPDW?▾
Since IEFA and SPDW have 54% holdings overlap, owning both means significant duplication. Most beginners are better off choosing one.