EFA vs ICLN: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI EAFE ETF (EFA) and iShares Global Clean Energy ETF (ICLN) carry a correlation of 0.53, a moderate link. By holdings, the two funds overlap 0.5% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EFA and ICLN?
Across a 3-year window, the weekly returns of EFA and ICLN correlate at 0.53, moderate. Little has changed lately, as the 1-year reading of 0.45 lands near the 3-year figure. Stretching to 5 years gives 0.59, with an annualized covariance of 190.7 %².
Among the 109 assets we track against EFA, ICLN ranks #81 by 3-year correlation. Twelve-month performance is nearly a tie, at +21.9% for EFA and +25.6% for ICLN. On a rolling one-year basis the correlation drifted between 0.45 and 0.84, a moderate band. Note the risk asymmetry: ICLN runs 1.6 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 ICLN: side by side
| EFA (iShares MSCI EAFE ETF) | ICLN (iShares Global Clean Energy ETF) | |
|---|---|---|
| 1-year return | +21.9% | +25.6% |
| 5-year return | +56.7% | -18.4% |
| Volatility (ann.) | 14.9% | 24.0% |
| Beta vs S&P 500 | 0.77 | 0.78 |
| Max drawdown (3Y) | -14.1% | -34.6% |
| Dividend yield | 3.19% | 1.05% |
| Expense ratio | 0.32% | 0.39% |
| Assets under management | $78.0B | $2.3B |
| Sector / category | ETF · International | ETF · Thematic |
On the fund side, EFA sits in the Foreign Large Blend category at iShares, with $78.0B under management, 666 holdings, a 0.32% expense ratio, a 3.19% trailing dividend yield. ICLN, iShares's Miscellaneous Sector fund, carries $2.3B under management, 102 holdings, a 0.39% expense ratio, a 1.05% trailing dividend yield.
Portfolio overlap between EFA and ICLN
The two portfolios are largely distinct, with 10 holdings in common adding up to 0.5% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in EFA | Weight in ICLN |
|---|---|---|
| VWS | 0.14% | 4.36% |
| NXT | 0.11% | 6.81% |
| EDP | 0.07% | 2.87% |
| 9502 | 0.05% | 2.68% |
| ENLT | 0.05% | 2.04% |
| ORSTED | 0.04% | 1.60% |
| EDPR | 0.02% | 0.86% |
| MEL | 0.02% | 0.22% |
| CEN | 0.02% | 0.32% |
| VER | 0.02% | 0.58% |
Largest positions held only by EFA: ASML (2.99%), HSBA (1.57%), ROP (1.42%), SAN (1.38%), NOVN (1.28%). Only by ICLN: FSLR (7.87%), 600900 (7.64%), BE (7.36%), ENPH (4.70%), EQTL3 (3.09%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 10 common positions shown.
Year-by-year returns
| Year | EFA | ICLN |
|---|---|---|
| 2022 | -14.4% | -5.4% |
| 2023 | +18.4% | -20.4% |
| 2024 | +3.5% | -25.7% |
| 2025 | +31.5% | +47.0% |
| 2026 | +14.3% | +8.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EFA and ICLN good diversifiers for each other?
To a limited degree. At 0.53 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between EFA and ICLN?
As of 2026-08-27, the correlation of weekly returns between EFA and ICLN is 0.53 over 3 years, 0.45 over 1 year and 0.59 over 5 years.
Is ICLN a good diversifier for EFA?
To a limited degree. At 0.53 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do EFA and ICLN overlap?
The two funds share 10 holdings amounting to 0.5% of weight, per issuer portfolio files dated 2026-08-26.
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Related comparisons
Hubs: EFA correlations · ICLN correlations
