ACWI vs EFA: Correlation & Overlap
iShares MSCI ACWI ETF (ACWI) and iShares MSCI EAFE ETF (EFA) show a very strong relationship: their 3-year correlation of weekly returns is 0.88. The two funds also share 22.5% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and EFA?
On 3 years of weekly data the ACWI/EFA correlation comes out at 0.88, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.88 over 1 year against 0.88 over 3. The 5-year figure is 0.90, and annualized covariance runs at 180.1 %².
By 3-year correlation, EFA places #18 of the 119 assets tracked against ACWI. Their 12-month results are close: +22.7% for ACWI against +21.9% for EFA. The link looks structural: the rolling one-year correlation barely moved, holding between 0.80 and 0.94.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ACWI vs EFA: side by side
| ACWI (iShares MSCI ACWI ETF) | EFA (iShares MSCI EAFE ETF) | |
|---|---|---|
| 1-year return | +22.7% | +21.9% |
| 5-year return | +69.0% | +56.7% |
| Volatility (ann.) | 13.8% | 14.9% |
| Beta vs S&P 500 | 0.92 | 0.77 |
| Max drawdown (3Y) | -16.5% | -14.1% |
| Dividend yield | 1.44% | 3.19% |
| Expense ratio | 0.32% | 0.32% |
| Assets under management | $32.5B | $78.0B |
| Sector / category | ETF · Global | ETF · International |
ACWI is a Global Large-Stock Blend fund from iShares: $32.5B under management, 1590 holdings, a 0.32% expense ratio, a 1.44% trailing dividend yield. EFA is a Foreign Large Blend fund from iShares: $78.0B under management, 666 holdings, a 0.32% expense ratio, a 3.19% trailing dividend yield.
Portfolio overlap between ACWI and EFA
The two portfolios partially overlap. Weighing the shared positions, 22.5% of the two funds is identical, spread across 612 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in ACWI | Weight in EFA |
|---|---|---|
| ASML | 0.65% | 2.99% |
| HSBA | 0.35% | 1.57% |
| ROP | 0.34% | 1.42% |
| SAN | 0.29% | 1.38% |
| NOVN | 0.28% | 1.28% |
| SU | 0.25% | 0.84% |
| SHEL | 0.25% | 1.14% |
| NESN | 0.24% | 1.13% |
| AZN | 0.24% | 1.11% |
| SIE | 0.24% | 1.10% |
| 8306 | 0.23% | 1.06% |
| BHP | 0.23% | 1.08% |
| BA | 0.23% | 0.37% |
| SAP | 0.22% | 0.97% |
| ALV | 0.19% | 0.88% |
Largest positions held only by ACWI: NVDA (4.64%), AAPL (4.41%), MSFT (3.35%), AMZN (2.41%), GOOGL (1.91%). Only by EFA: 4091 (0.03%), SDR (0.03%), ANA (0.03%), INDU A (0.03%), AMUN (0.03%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | ACWI | EFA |
|---|---|---|
| 2022 | -18.4% | -14.4% |
| 2023 | +22.3% | +18.4% |
| 2024 | +17.4% | +3.5% |
| 2025 | +22.4% | +31.5% |
| 2026 | +14.9% | +14.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and EFA good diversifiers for each other?
Not really. At 0.88, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between ACWI and EFA?
As of 2026-08-27, the correlation of weekly returns between ACWI and EFA is 0.88 over 3 years, 0.88 over 1 year and 0.90 over 5 years.
Is EFA a good diversifier for ACWI?
Not really. At 0.88, the two trade almost as one position, and owning both buys little extra protection.
How much do ACWI and EFA overlap?
The two funds share 612 holdings amounting to 22.5% of weight, per issuer portfolio files dated 2026-08-26.
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Related comparisons
Hubs: ACWI correlations · EFA correlations
