ACWI vs IEFA: Correlation & Overlap
iShares MSCI ACWI ETF (ACWI) and iShares Core MSCI EAFE ETF (IEFA) show a very strong relationship: their 3-year correlation of weekly returns is 0.88. The two funds also share 22.7% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and IEFA?
Over the past 3 years, ACWI and IEFA moved with a correlation of 0.88, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.88) sits close to the 3-year figure. Over 5 years the correlation is 0.90, and the annualized covariance of weekly returns is 180.8 %².
Among the 119 assets we track against ACWI, IEFA ranks #20 by 3-year correlation. Their 12-month results are close: +22.7% for ACWI against +21.8% for IEFA. 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 IEFA: side by side
| ACWI (iShares MSCI ACWI ETF) | IEFA (iShares Core MSCI EAFE ETF) | |
|---|---|---|
| 1-year return | +22.7% | +21.8% |
| 5-year return | +69.0% | +54.5% |
| Volatility (ann.) | 13.8% | 15.0% |
| Beta vs S&P 500 | 0.92 | 0.77 |
| Max drawdown (3Y) | -16.5% | -13.8% |
| Dividend yield | 1.44% | 3.35% |
| Expense ratio | 0.32% | 0.07% |
| Assets under management | $32.5B | $190.1B |
| Sector / category | ETF · Global | ETF · International |
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. IEFA, iShares's Foreign Large Blend fund, carries $190.1B under management, 1620 holdings, a 0.07% expense ratio, a 3.35% trailing dividend yield.
Portfolio overlap between ACWI and IEFA
The two portfolios partially overlap: 22.7% of the funds' weight sits in the same underlying holdings (630 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in ACWI | Weight in IEFA |
|---|---|---|
| ASML | 0.65% | 2.57% |
| HSBA | 0.35% | 1.35% |
| ROP | 0.34% | 1.22% |
| SAN | 0.29% | 1.17% |
| NOVN | 0.28% | 1.10% |
| SU | 0.25% | 0.72% |
| SHEL | 0.25% | 0.97% |
| NESN | 0.24% | 0.97% |
| AZN | 0.24% | 0.95% |
| SIE | 0.24% | 0.95% |
| 8306 | 0.23% | 0.91% |
| BHP | 0.23% | 0.93% |
| BA | 0.23% | 0.31% |
| SAP | 0.22% | 0.83% |
| ALV | 0.19% | 0.76% |
Largest positions held only by ACWI: NVDA (4.64%), AAPL (4.41%), MSFT (3.35%), AMZN (2.41%), GOOGL (1.91%). Only by IEFA: DPLM (0.05%), 6525 (0.04%), BEZ (0.04%), 6963 (0.04%), IMI (0.04%).
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 | IEFA |
|---|---|---|
| 2022 | -18.4% | -15.2% |
| 2023 | +22.3% | +18.0% |
| 2024 | +17.4% | +3.3% |
| 2025 | +22.4% | +32.1% |
| 2026 | +14.9% | +14.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and IEFA 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 IEFA?
As of 2026-08-27, the correlation of weekly returns between ACWI and IEFA is 0.88 over 3 years, 0.88 over 1 year and 0.90 over 5 years.
Is IEFA 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 IEFA overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 22.7% by weight over 630 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/acwi-vs-iefa.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/acwi-vs-iefa/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ACWI correlations · IEFA correlations
