ACWI vs IAF: Correlation
iShares MSCI ACWI ETF (ACWI) and abrdn Australia Equity Fund, Inc. (IAF) show a strong relationship: their 3-year correlation of weekly returns is 0.77.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and IAF?
On 3 years of weekly data the ACWI/IAF correlation comes out at 0.77, strong. The relationship has been stable: the 1-year correlation (0.78) sits close to the 3-year figure. The 5-year figure is 0.74, and annualized covariance runs at 198.5 %².
Within ACWI's tracked universe of 119 assets, IAF comes in at #50 by 3-year correlation. Over the last 12 months ACWI came out ahead by 13.7 percentage points (+22.7% against +9.0%).
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 IAF: side by side
| ACWI (iShares MSCI ACWI ETF) | IAF (abrdn Australia Equity Fund, Inc.) | |
|---|---|---|
| 1-year return | +22.7% | +9.0% |
| 5-year return | +69.0% | +23.6% |
| Volatility (ann.) | 13.8% | 18.6% |
| Beta vs S&P 500 | 0.92 | 0.88 |
| Max drawdown (3Y) | -16.5% | -23.6% |
| Market cap | – | $0.1B |
| P/E (trailing) | – | 7.7 |
| Dividend yield | 1.44% | 10.76% |
| Expense ratio | 0.32% | – |
| Assets under management | $32.5B | – |
| Sector / category | ETF · Global | US Listed |
ACWI, iShares's Global Large-Stock Blend fund, carries $32.5B under management, 1590 holdings, a 0.32% expense ratio, a 1.44% trailing dividend yield.
Year-by-year returns
| Year | ACWI | IAF |
|---|---|---|
| 2022 | -18.4% | -19.4% |
| 2023 | +22.3% | +10.4% |
| 2024 | +17.4% | +8.2% |
| 2025 | +22.4% | +14.9% |
| 2026 | +14.9% | +12.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and IAF good diversifiers for each other?
Only partially. A correlation of 0.77 means ACWI and IAF share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between ACWI and IAF?
Using weekly returns as of 2026-08-27: 0.77 over 3 years, with 0.78 over the last year and 0.74 over 5 years.
Is IAF a good diversifier for ACWI?
Only partially. A correlation of 0.77 means ACWI and IAF share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.77 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/acwi-vs-iaf.json
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Related comparisons
Hubs: ACWI correlations · IAF correlations
