EEA vs IEFA: Correlation
The European Equity Fund, Inc. (EEA) and iShares Core MSCI EAFE ETF (IEFA) show a very strong relationship: their 3-year correlation of weekly returns is 0.82.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EEA and IEFA?
Over the past 3 years, EEA and IEFA moved with a correlation of 0.82, which is very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.80 lands near the 3-year figure. Over 5 years the correlation is 0.84, and the annualized covariance of weekly returns is 188.4 %².
IEFA is one of the assets that tracks EEA most closely: it ranks #2 out of the 14 assets we track against EEA. The trailing year gives IEFA the advantage: +11.7% versus +21.8%, a 10.1-point spread.
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 IEFA: side by side
| EEA (The European Equity Fund, Inc.) | IEFA (iShares Core MSCI EAFE ETF) | |
|---|---|---|
| 1-year return | +11.7% | +21.8% |
| 5-year return | +34.8% | +54.5% |
| Volatility (ann.) | 15.4% | 15.0% |
| Beta vs S&P 500 | 0.61 | 0.77 |
| Max drawdown (3Y) | -14.1% | -13.8% |
| Market cap | $0.1B | – |
| P/E (trailing) | 4.2 | – |
| Dividend yield | 6.92% | 3.35% |
| Expense ratio | – | 0.07% |
| Assets under management | – | $190.1B |
| Sector / category | US Listed | ETF · International |
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.
Year-by-year returns
| Year | EEA | IEFA |
|---|---|---|
| 2022 | -19.0% | -15.2% |
| 2023 | +17.2% | +18.0% |
| 2024 | -3.5% | +3.3% |
| 2025 | +28.8% | +32.1% |
| 2026 | +13.6% | +14.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEA and IEFA good diversifiers for each other?
No. With a correlation of 0.82, EEA and IEFA move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between EEA and IEFA?
As of 2026-08-27, the correlation of weekly returns between EEA and IEFA is 0.82 over 3 years, 0.80 over 1 year and 0.84 over 5 years.
Is IEFA a good diversifier for EEA?
No. With a correlation of 0.82, EEA and IEFA move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.82 mean?
A reading of 0.82 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/eea-vs-iefa.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/eea-vs-iefa/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EEA correlations · IEFA correlations
