EFA vs. IWM – Which is Best For You?

Discover my comparison of EFA vs. IWM to determine which is best for you. I have compiled all of the information about these funds across the internet in this article to make your research easier.

EFA vs. IWM Key Characteristics

You can use the table below to compare the key characteristics of these funds:

MetricsEFAIWM
1-Year Annual Return18.07%16.80%
5-Year Annual Return8.18%9.87%
Expense Ratio0.33%0.19%
Dividend Yield2.97%1.35%
Number of Holdings8091975

You can compare these funds in real time using the TradingView chart below. Ensure to click the “ADJ” button at the bottom right of the chart to adjust the data for dividends! While TradingView doesn’t support mutual funds, you can change them to the ETF equivalent to see the returns in real-time.

EFA

  • Expense Ratio: 0.33%
  • Dividend Yield: 2.97%
  • # of Holdings: 809

IWM

  • Expense Ratio: 0.19%
  • Dividend Yield: 1.35%
  • # of Holdings: 1975

Overview of EFA

EFA, the iShares MSCI EAFE ETF, is an exchange-traded fund managed by BlackRock. This ETF is designed to track the performance of the MSCI EAFE Index, a benchmark index representing large and mid-cap securities across developed markets and countries around the world, excluding the U.S. and Canada. EFA primarily includes stocks from Europe, Australasia, and the Far East, hence the acronym EAFE.

Overview of IWM

The iShares Russell 2000 ETF, trading under the ticker symbol IWM, is an exchange-traded fund managed by BlackRock. It is designed to track the performance of the Russell 2000 Index, which consists of the smallest 2000 stocks in the Russell 3000 Index, representing the small-cap segment of the U.S. equity market. Managed by BlackRock, IWM is known for its liquidity and is widely used by both institutional and individual investors.

Performance Comparison of EFA vs. IWM

The total return performance including dividends is crucial to consider when analyzing different investment funds. 

As of 1/15/2024, EFA has a one year annualized return of 18.07%, while IWM has a five year annualized return of 16.80%. 

EFA vs. IWM Dividend Yield

Both EFA and IWM pay dividends to their shareholders from the earnings of their underlying stocks. The dividend yield is a measure of how much a company pays in dividends relative to its share price.

As of 1/15/2024 the dividend yield of EFA is 2.97%, while the dividend yield of  IWM is 1.35%. 

EFA vs. IWM Expense Ratios

The expense ratio is a measure of how much an ETF charges its investors for managing the fund. It is expressed as a percentage of the fund’s assets per year.

The expense ratio is one of the most important factors to consider when choosing an ETF because it directly affects your returns over time. The lower the expense ratio, the more money you get to keep from your investment.

As of 1/15/2024 EFA has an expense ratio of 0.33%, while IWM has an expense ratio of 0.19%. 

EFA vs. IWM Holdings

A fund’s holdings are the basket of individual securities that it owns and tracks. It is crucial for investors to analyze a fund’s holdings because they are effectively what you are investing in by purchasing the fund. 

As of 1/15/2024 EFA holds 809 securities, while IWM holds 1975. 

ETF Comparison Tool

I created an ETF comparison tool you can use with the chart below. Simply search for multiple ETFs or mutual funds to easily compare the key metrics of over 2,000 funds.

Mutual Funds vs. ETFs

When comparing investment funds, you may be confused about the difference between an ETF and a mutual fund. Keep in mind, an index fund is a specific type of mutual fund. ETFs are tradeable during the stock market hours, while mutual funds only update once per day.

etf vs mutual fund table comparison

Mutual funds are pooled investment vehicles that are managed by a fund company or an investment advisor. They issue and redeem shares directly to investors at the end of each trading day based on their net asset value (NAV). Investors can buy and sell mutual fund shares through the fund company or a broker.

ETFs are also pooled investment vehicles that are managed by a fund company or an investment advisor. However, they trade like stocks on an exchange throughout the trading day at market prices that may differ from their NAV. Investors can buy and sell ETF shares through a broker.

Some of the advantages and disadvantages of mutual funds vs ETFs are:

  • Mutual funds may offer more convenience and flexibility for investors who want to invest a fixed amount of money or set up automatic investments or withdrawals.
  • Mutual funds may require a larger minimum investment.
  • ETFs may incur bid-ask spreads and premiums or discounts to their NAV, which can affect their trading efficiency and performance.
  • Mutual funds may be less tax-efficient than ETFs, as they may distribute more capital gains to their shareholders due to their redemption mechanism.
  • ETFs may be more tax-efficient than mutual funds, as they may avoid realizing capital gains through their creation and redemption mechanism.

EFA vs. IWM - Bottom Line

Ultimately, both EFA and IWM are solid investment choices. The choice between the two ultimately depends on the exposure you want and the amount of risk you are willing to take. 

Hopefully, the information in this article helps you decide which is better for your portfolio. To continue your research, check out our other fund comparison articles as well!

Comparing ETFs With TradingView

When comparing ETFs, it is crucial that you are comparing the total return to include dividend payments. TradingView allows you to compare several stocks and ETFs at once on a single chart adjusted for dividends.

You can simply sign up for a free TradingView account and type the stock ticker you want to compare.

TradingView Limited Time Offer!

Exclusive Deal: 30-Day FREE Premium Access + Bonus Credit

Don't Miss Out - Sign up for TradingView Now!

  • Advanced Charts
  • Real-Time Data
  • Track all Markets
CLAIM YOUR FREE TRIAL

Next, click the plus sign next to the ticker at the top left of the chart to add symbols to compare.

tradingview plus icon

Finally, ensure you click the ‘ADJ’ at the bottom to adjust the returns for dividends!

tradingview adj icon

TradingView is the best way to compare multiple funds and ETFs on a single chart, making your research much easier. Feel free to compare any ETFs you'd like using the widget at the top of this page. Alternatively, sign up for a free TradingView account and use the main website for a better experience. You can also watch the video below to learn how to compare funds with TradingView:

YouTube video

Other ETF Comparisons


EFA vs VXF

FXAIX vs VONG

VONG vs VUG

SCHG vs VUG

VOO vs VV