ETF Versus

IEFA vs XLK

iShares Core MSCI EAFE ETF vs State Street Technology Select Sector SPDR ETF

Last updated: 2026-04-10

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 3.33%. Launched in 2012, the fund has a 14-year track record.

AUM: $179.4B ER: 0.07% Yield: 3.33% Since: Oct 18, 2012
XLK SPDR

State Street Technology Select Sector SPDR ETF (XLK) is an exchange-traded fund issued by SPDR that provides exposure to us sector - technology securities. It charges a low expense ratio of 0.08%. The fund offers a modest dividend yield of 0.54%. Launched in 1998, the fund has a 28-year track record.

AUM: $90.3B ER: 0.08% Yield: 0.54% Since: Dec 16, 1998

Quick Verdict

Both funds have nearly identical expense ratios (0.07% vs 0.08%), so fees are not a differentiator here. Over the past year, XLK has significantly outperformed with a 46.8% return vs 33.2%. Income investors may prefer IEFA for its higher yield (3.3% vs 0.5%).

Key Metrics

Metric IEFA XLK
Expense Ratio 0.07% 0.08%
Dividend Yield 3.3% 0.5%
Fund Family iShares SPDR
Category International Developed US Sector - Technology

Performance Chart

Indexed to 100 at start (5-year comparison)

70 99 128 157 186 215 2021-04 2022-07 2023-10 2025-01 2026-04
IEFA +29.1%
XLK +102.2%

Performance Comparison

Period IEFA XLK Difference
1 Month +3.15% +1.60% +1.55%
3 Months +2.82% -2.80% +5.62%
6 Months +9.76% +0.06% +9.70%
YTD +5.46% -1.13% +6.59%
1 Year +33.17% +46.81% -13.64%
3 Years +41.47% +93.34% -51.87%
5 Years +29.07% +102.25% -73.18%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IEFA Fees XLK Fees You Save
$10,000 10 years $140 $159 $20
$10,000 20 years $600 $686 $85
$10,000 30 years $1,938 $2,212 $274
$50,000 10 years $698 $797 $99
$50,000 30 years $9,692 $11,061 $1,370
$100,000 30 years $19,383 $22,123 $2,739

Risk Metrics

Based on 5 years of daily returns

Metric IEFA XLK
Annualized Volatility 16.7% 24.7%
Max Drawdown -33.1% -34.0%
Sharpe Ratio 0.12 0.51

Dividend Comparison

Metric IEFA XLK
Annual Dividend (per share) $3.18 $0.77
Dividend Yield 3.34% 0.54%
Distribution Frequency Semi-Annual or Annual Quarterly

Top Holdings

0 of top 10 holdings overlap (0% overlap in top holdings)

IEFA Top Holdings

NameWeight
ASML Holding N.V.!ams/ASML2.18%
AstraZeneca PLC!lon/AZN1.26%
HSBC Holdings plc!lon/HSBA1.22%
Novartis AG!swx/NOVN1.16%
Roche Holding AG!swx/ROP1.11%
Shell plc!lon/SHEL1.03%
Nestlé S.A.!swx/NESN1.02%
Commonwealth Bank of Australia!asx/CBA0.84%
Siemens Aktiengesellschaft!etr/SIE0.82%
Mitsubishi UFJ Financial Group, Inc.!tyo/83060.81%

XLK Top Holdings

NameWeight
NVIDIA CorporationNVDA15.30%
Apple Inc.AAPL13.10%
Microsoft CorporationMSFT9.49%
Broadcom Inc.AVGO5.76%
Micron Technology, Inc.MU3.96%
Advanced Micro Devices, Inc.AMD3.22%
Cisco Systems, Inc.CSCO2.74%
Lam Research CorporationLRCX2.69%
Applied Materials, Inc.AMAT2.63%
Palantir Technologies Inc.PLTR2.49%

Which One Should You Choose?

Choose XLK if...

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

Choose IEFA if...

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

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