EFA vs IVV: Correlation & Overlap
iShares MSCI EAFE ETF (EFA) and iShares Core S&P 500 ETF (IVV) show a strong relationship: their 3-year correlation of weekly returns is 0.75. By holdings, the two funds overlap 1.0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EFA and IVV?
Across a 3-year window, the weekly returns of EFA and IVV correlate at 0.75, strong. The relationship has been stable: the 1-year correlation (0.73) sits close to the 3-year figure. Stretching to 5 years gives 0.79, with an annualized covariance of 161.8 %².
Within EFA's tracked universe of 109 assets, IVV comes in at #26 by 3-year correlation. Twelve-month performance is nearly a tie, at +21.9% for EFA and +20.7% for IVV. The link looks structural: the rolling one-year correlation barely moved, holding between 0.62 and 0.86.
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 IVV: side by side
| EFA (iShares MSCI EAFE ETF) | IVV (iShares Core S&P 500 ETF) | |
|---|---|---|
| 1-year return | +21.9% | +20.7% |
| 5-year return | +56.7% | +83.0% |
| Volatility (ann.) | 14.9% | 14.5% |
| Beta vs S&P 500 | 0.77 | 1.00 |
| Max drawdown (3Y) | -14.1% | -18.8% |
| Dividend yield | 3.19% | 1.09% |
| Expense ratio | 0.32% | 0.03% |
| Assets under management | $78.0B | $869.2B |
| Sector / category | ETF · International | ETF · US Large Cap |
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. IVV is a Large Blend fund from iShares: $869.2B under management, 503 holdings, a 0.03% expense ratio, a 1.09% trailing dividend yield.
Portfolio overlap between EFA and IVV
The two portfolios are largely distinct. Weighing the shared positions, 1.0% of the two funds is identical, spread across 18 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in EFA | Weight in IVV |
|---|---|---|
| BA | 0.37% | 0.25% |
| ALL | 0.11% | 0.10% |
| MRK | 0.09% | 0.57% |
| ROP | 1.42% | 0.06% |
| ADM | 0.06% | 0.06% |
| PRU | 0.16% | 0.06% |
| HBAN | 0.09% | 0.05% |
| EQT | 0.07% | 0.05% |
| TEL | 0.04% | 0.09% |
| DTE | 0.51% | 0.04% |
| DG | 0.29% | 0.04% |
| EL | 0.25% | 0.04% |
| SW | 0.03% | 0.04% |
| TSCO | 0.18% | 0.03% |
| ADP | 0.02% | 0.17% |
Largest positions held only by EFA: ASML (2.99%), HSBA (1.57%), SAN (1.38%), NOVN (1.28%), SHEL (1.14%). Only by IVV: NVDA (7.67%), AAPL (6.96%), MSFT (5.57%), AMZN (3.85%), GOOGL (3.03%).
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 | IVV |
|---|---|---|
| 2022 | -14.4% | -18.2% |
| 2023 | +18.4% | +26.3% |
| 2024 | +3.5% | +24.9% |
| 2025 | +31.5% | +17.8% |
| 2026 | +14.3% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EFA and IVV good diversifiers for each other?
Only partially. A correlation of 0.75 means EFA and IVV share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between EFA and IVV?
Using weekly returns as of 2026-08-27: 0.75 over 3 years, with 0.73 over the last year and 0.79 over 5 years.
Is IVV a good diversifier for EFA?
Only partially. A correlation of 0.75 means EFA and IVV share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do EFA and IVV overlap?
The two funds share 18 holdings amounting to 1.0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/efa-vs-ivv.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/efa-vs-ivv/)
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Related comparisons
Hubs: EFA correlations · IVV correlations
