EFA vs ETO: Correlation
How closely do iShares MSCI EAFE ETF (EFA) and Eaton Vance Tax-Advantage Global Dividend Opp (ETO) trade together? Their weekly returns over three years give a correlation of 0.85, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EFA and ETO?
Over the past 3 years, EFA and ETO moved with a correlation of 0.85, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.85 over 1 year against 0.85 over 3. Over 5 years the correlation is 0.82, and the annualized covariance of weekly returns is 212.2 %².
Within EFA's tracked universe of 109 assets, ETO comes in at #6 by 3-year correlation. Twelve-month performance is nearly a tie, at +21.9% for EFA and +24.4% for ETO.
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.
EFA vs ETO: side by side
| EFA (iShares MSCI EAFE ETF) | ETO (Eaton Vance Tax-Advantage Global Dividend Opp) | |
|---|---|---|
| 1-year return | +21.9% | +24.4% |
| 5-year return | +56.7% | +43.6% |
| Volatility (ann.) | 14.9% | 16.6% |
| Beta vs S&P 500 | 0.77 | 1.02 |
| Max drawdown (3Y) | -14.1% | -18.2% |
| Market cap | – | $0.5B |
| P/E (trailing) | – | 3.8 |
| Dividend yield | 3.19% | 6.57% |
| Expense ratio | 0.32% | – |
| Assets under management | $78.0B | – |
| Sector / category | ETF · International | US Listed |
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 | EFA | ETO |
|---|---|---|
| 2022 | -14.4% | -30.0% |
| 2023 | +18.4% | +21.5% |
| 2024 | +3.5% | +15.5% |
| 2025 | +31.5% | +29.9% |
| 2026 | +14.3% | +9.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EFA and ETO good diversifiers for each other?
No. With a correlation of 0.85, EFA and ETO move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between EFA and ETO?
As of 2026-08-27, the correlation of weekly returns between EFA and ETO is 0.85 over 3 years, 0.85 over 1 year and 0.82 over 5 years.
Is ETO a good diversifier for EFA?
No. With a correlation of 0.85, EFA and ETO move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.85 mean?
On the −1 to +1 scale, 0.85 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/efa-vs-eto.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/efa-vs-eto/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: EFA correlations · ETO correlations
