DGRO vs IEFA: Correlation & Overlap
How closely do iShares Core Dividend Growth ETF (DGRO) and iShares Core MSCI EAFE ETF (IEFA) trade together? Their weekly returns over three years give a correlation of 0.76, which is strong. The two funds also share 1.0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and IEFA?
Over the past 3 years, DGRO and IEFA moved with a correlation of 0.76, which is strong. Recent behaviour matches the longer record: 0.74 over 1 year against 0.76 over 3. Over 5 years the correlation is 0.78, and the annualized covariance of weekly returns is 129.7 %².
Among the 138 assets we track against DGRO, IEFA ranks #25 by 3-year correlation. Their 12-month results are close: +21.0% for DGRO against +21.8% for IEFA. The rolling one-year correlation moved between 0.62 and 0.88 over the past three years, a moderate range.
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 IEFA: side by side
| DGRO (iShares Core Dividend Growth ETF) | IEFA (iShares Core MSCI EAFE ETF) | |
|---|---|---|
| 1-year return | +21.0% | +21.8% |
| 5-year return | +67.9% | +54.5% |
| Volatility (ann.) | 11.4% | 15.0% |
| Beta vs S&P 500 | 0.65 | 0.77 |
| Max drawdown (3Y) | -14.0% | -13.8% |
| Dividend yield | 1.89% | 3.35% |
| Expense ratio | 0.08% | 0.07% |
| Assets under management | $42.8B | $190.1B |
| Sector / category | ETF · Dividend | ETF · International |
DGRO, iShares's Large Value fund, carries $42.8B under management, 383 holdings, a 0.08% expense ratio, a 1.89% 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 DGRO and IEFA
The two portfolios are largely distinct. Weighing the shared positions, 1.0% of the two funds is identical, spread across 24 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in DGRO | Weight in IEFA |
|---|---|---|
| DTE | 0.19% | 0.44% |
| TSCO | 0.11% | 0.15% |
| ROP | 0.10% | 1.22% |
| ALL | 0.29% | 0.09% |
| MRK | 2.20% | 0.08% |
| CFR | 0.06% | 0.48% |
| BG | 0.07% | 0.06% |
| ADM | 0.20% | 0.05% |
| CSL | 0.04% | 0.23% |
| ORI | 0.07% | 0.03% |
| TEL | 0.19% | 0.03% |
| AMP | 0.16% | 0.03% |
| G | 0.02% | 0.16% |
| ADP | 0.71% | 0.02% |
| UCB | 0.02% | 0.12% |
Largest positions held only by DGRO: MSFT (3.39%), JNJ (3.16%), JPM (3.14%), ABBV (3.03%), XOM (2.86%). Only by IEFA: ASML (2.57%), HSBA (1.35%), SAN (1.17%), NOVN (1.10%), NESN (0.97%).
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 | DGRO | IEFA |
|---|---|---|
| 2022 | -7.9% | -15.2% |
| 2023 | +10.5% | +18.0% |
| 2024 | +16.6% | +3.3% |
| 2025 | +15.7% | +32.1% |
| 2026 | +15.2% | +14.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and IEFA 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 IEFA?
As of 2026-08-27, the correlation of weekly returns between DGRO and IEFA is 0.76 over 3 years, 0.74 over 1 year and 0.78 over 5 years.
Is IEFA 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 IEFA overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 1.0% by weight over 24 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dgro-vs-iefa.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/dgro-vs-iefa/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: DGRO correlations · IEFA correlations
