EFA vs IEFA: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI EAFE ETF (EFA) and iShares Core MSCI EAFE ETF (IEFA) carry a correlation of 1.00, a very strong link. By holdings, the two funds overlap 85.6% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EFA and IEFA?
Over the past 3 years, EFA and IEFA moved with a correlation of 1.00, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (1.00) sits close to the 3-year figure. Over 5 years the correlation is 1.00, and the annualized covariance of weekly returns is 223.1 %².
In EFA's tracked universe of 109 assets, IEFA sits right near the top at #1. Twelve-month performance is nearly a tie, at +21.9% for EFA and +21.8% for IEFA. The link looks structural: the rolling one-year correlation barely moved, holding between 1.00 and 1.00.
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 IEFA: side by side
| EFA (iShares MSCI EAFE ETF) | IEFA (iShares Core MSCI EAFE ETF) | |
|---|---|---|
| 1-year return | +21.9% | +21.8% |
| 5-year return | +56.7% | +54.5% |
| Volatility (ann.) | 14.9% | 15.0% |
| Beta vs S&P 500 | 0.77 | 0.77 |
| Max drawdown (3Y) | -14.1% | -13.8% |
| Dividend yield | 3.19% | 3.35% |
| Expense ratio | 0.32% | 0.07% |
| Assets under management | $78.0B | $190.1B |
| Sector / category | ETF · International | ETF · International |
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. 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 EFA and IEFA
The two portfolios are near-duplicates, with 666 holdings in common adding up to 85.6% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in EFA | Weight in IEFA |
|---|---|---|
| ASML | 2.99% | 2.57% |
| HSBA | 1.57% | 1.35% |
| ROP | 1.42% | 1.22% |
| SAN | 1.38% | 1.17% |
| NOVN | 1.28% | 1.10% |
| NESN | 1.13% | 0.97% |
| SHEL | 1.14% | 0.97% |
| AZN | 1.11% | 0.95% |
| SIE | 1.10% | 0.95% |
| BHP | 1.08% | 0.93% |
| 8306 | 1.06% | 0.91% |
| SAP | 0.97% | 0.83% |
| ALV | 0.88% | 0.76% |
| SU | 0.84% | 0.72% |
| CBA | 0.82% | 0.71% |
Largest positions held only by EFA: . Only by IEFA: DPLM (0.05%), 6525 (0.04%), BEZ (0.04%), 6963 (0.04%), IMI (0.04%).
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 | EFA | IEFA |
|---|---|---|
| 2022 | -14.4% | -15.2% |
| 2023 | +18.4% | +18.0% |
| 2024 | +3.5% | +3.3% |
| 2025 | +31.5% | +32.1% |
| 2026 | +14.3% | +14.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EFA and IEFA good diversifiers for each other?
Not really. At 1.00, the two trade almost as one position, and owning both buys little extra protection. The 85.6% holdings overlap makes the redundancy concrete: much of it is the same book twice.
FAQ
What is the correlation between EFA and IEFA?
As of 2026-08-27, the correlation of weekly returns between EFA and IEFA is 1.00 over 3 years, 1.00 over 1 year and 1.00 over 5 years.
Is IEFA a good diversifier for EFA?
Not really. At 1.00, the two trade almost as one position, and owning both buys little extra protection. The 85.6% holdings overlap makes the redundancy concrete: much of it is the same book twice.
How much do EFA and IEFA overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 85.6% by weight over 666 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/efa-vs-iefa.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/efa-vs-iefa/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EFA correlations · IEFA correlations
