DGRO vs EFA: Correlation & Overlap
How closely do iShares Core Dividend Growth ETF (DGRO) and iShares MSCI EAFE ETF (EFA) trade together? Their weekly returns over three years give a correlation of 0.76, which is strong. The two funds also share 0.9% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and EFA?
On 3 years of weekly data the DGRO/EFA correlation comes out at 0.76, strong. Recent behaviour matches the longer record: 0.74 over 1 year against 0.76 over 3. The 5-year figure is 0.79, and annualized covariance runs at 129.4 %².
By 3-year correlation, EFA places #24 of the 138 assets tracked against DGRO. Neither side won the trailing year by much: +21.0% against +21.9%. On a rolling one-year basis the correlation drifted between 0.62 and 0.88, a moderate band.
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.
DGRO vs EFA: side by side
| DGRO (iShares Core Dividend Growth ETF) | EFA (iShares MSCI EAFE ETF) | |
|---|---|---|
| 1-year return | +21.0% | +21.9% |
| 5-year return | +67.9% | +56.7% |
| Volatility (ann.) | 11.4% | 14.9% |
| Beta vs S&P 500 | 0.65 | 0.77 |
| Max drawdown (3Y) | -14.0% | -14.1% |
| Dividend yield | 1.89% | 3.19% |
| Expense ratio | 0.08% | 0.32% |
| Assets under management | $42.8B | $78.0B |
| Sector / category | ETF · Dividend | ETF · International |
DGRO is a Large Value fund from iShares: $42.8B under management, 383 holdings, a 0.08% expense ratio, a 1.89% 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 DGRO and EFA
The two portfolios are largely distinct: 0.9% of the funds' weight sits in the same underlying holdings (13 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in DGRO | Weight in EFA |
|---|---|---|
| DTE | 0.19% | 0.51% |
| ALL | 0.29% | 0.11% |
| TSCO | 0.11% | 0.18% |
| ROP | 0.10% | 1.42% |
| MRK | 2.20% | 0.09% |
| BG | 0.07% | 0.07% |
| ADM | 0.20% | 0.06% |
| CFR | 0.06% | 0.56% |
| CSL | 0.04% | 0.26% |
| TEL | 0.19% | 0.04% |
| ADP | 0.71% | 0.02% |
| G | 0.02% | 0.19% |
| UCB | 0.02% | 0.14% |
Largest positions held only by DGRO: MSFT (3.39%), JNJ (3.16%), JPM (3.14%), ABBV (3.03%), XOM (2.86%). Only by EFA: ASML (2.99%), HSBA (1.57%), SAN (1.38%), NOVN (1.28%), SHEL (1.14%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 13 common positions shown.
Year-by-year returns
| Year | DGRO | EFA |
|---|---|---|
| 2022 | -7.9% | -14.4% |
| 2023 | +10.5% | +18.4% |
| 2024 | +16.6% | +3.5% |
| 2025 | +15.7% | +31.5% |
| 2026 | +15.2% | +14.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and EFA good diversifiers for each other?
Somewhat, no more. With 0.76 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between DGRO and EFA?
As of 2026-08-27, the correlation of weekly returns between DGRO and EFA is 0.76 over 3 years, 0.74 over 1 year and 0.79 over 5 years.
Is EFA a good diversifier for DGRO?
Somewhat, no more. With 0.76 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do DGRO and EFA overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0.9% by weight over 13 common positions.
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Hubs: DGRO correlations · EFA correlations
