EEA vs EFA: Correlation
Measured on weekly returns over the past three years, The European Equity Fund, Inc. (EEA) and iShares MSCI EAFE ETF (EFA) carry a correlation of 0.82, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EEA and EFA?
On 3 years of weekly data the EEA/EFA correlation comes out at 0.82, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.80 over 1 year against 0.82 over 3. The 5-year figure is 0.84, and annualized covariance runs at 188.5 %².
Few assets follow EEA as closely as EFA, which ranks #1 of 14 tracked partners. Over the last 12 months EFA came out ahead by 10.2 percentage points (+11.7% against +21.9%).
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.
EEA vs EFA: side by side
| EEA (The European Equity Fund, Inc.) | EFA (iShares MSCI EAFE ETF) | |
|---|---|---|
| 1-year return | +11.7% | +21.9% |
| 5-year return | +34.8% | +56.7% |
| Volatility (ann.) | 15.4% | 14.9% |
| Beta vs S&P 500 | 0.61 | 0.77 |
| Max drawdown (3Y) | -14.1% | -14.1% |
| Market cap | $0.1B | – |
| P/E (trailing) | 4.2 | – |
| Dividend yield | 6.92% | 3.19% |
| Expense ratio | – | 0.32% |
| Assets under management | – | $78.0B |
| Sector / category | US Listed | ETF · International |
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.
Year-by-year returns
| Year | EEA | EFA |
|---|---|---|
| 2022 | -19.0% | -14.4% |
| 2023 | +17.2% | +18.4% |
| 2024 | -3.5% | +3.5% |
| 2025 | +28.8% | +31.5% |
| 2026 | +13.6% | +14.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEA and EFA good diversifiers for each other?
Not really. At 0.82, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between EEA and EFA?
As of 2026-08-27, the correlation of weekly returns between EEA and EFA is 0.82 over 3 years, 0.80 over 1 year and 0.84 over 5 years.
Is EFA a good diversifier for EEA?
Not really. At 0.82, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.82 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.
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Related comparisons
Hubs: EEA correlations · EFA correlations
