EFA vs QUAL: Correlation & Overlap
iShares MSCI EAFE ETF (EFA) and iShares MSCI USA Quality Factor ETF (QUAL) show a strong relationship: their 3-year correlation of weekly returns is 0.74. Looking through to holdings, 0.1% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EFA and QUAL?
Over the past 3 years, EFA and QUAL moved with a correlation of 0.74, which is strong. The relationship has been stable: the 1-year correlation (0.80) sits close to the 3-year figure. Over 5 years the correlation is 0.78, and the annualized covariance of weekly returns is 155.2 %².
Within EFA's tracked universe of 109 assets, QUAL comes in at #32 by 3-year correlation. Neither side won the trailing year by much: +21.9% against +19.7%. The rolling one-year correlation stayed in a tight band between 0.63 and 0.83 over the past three years, which points to a structural rather than episodic relationship.
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 QUAL: side by side
| EFA (iShares MSCI EAFE ETF) | QUAL (iShares MSCI USA Quality Factor ETF) | |
|---|---|---|
| 1-year return | +21.9% | +19.7% |
| 5-year return | +56.7% | +68.0% |
| Volatility (ann.) | 14.9% | 14.0% |
| Beta vs S&P 500 | 0.77 | 0.93 |
| Max drawdown (3Y) | -14.1% | -18.0% |
| Dividend yield | 3.19% | 0.86% |
| Expense ratio | 0.32% | 0.15% |
| Assets under management | $78.0B | $46.5B |
| Sector / category | ETF · International | ETF · US Style |
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. QUAL, iShares's Large Blend fund, carries $46.5B under management, 123 holdings, a 0.15% expense ratio, a 0.86% trailing dividend yield.
Portfolio overlap between EFA and QUAL
The two portfolios are largely distinct, with 2 holdings in common adding up to 0.1% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by EFA: ASML (2.99%), HSBA (1.57%), ROP (1.42%), SAN (1.38%), NOVN (1.28%). Only by QUAL: MSFT (7.51%), AAPL (6.62%), NVDA (6.00%), META (3.75%), LLY (3.72%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 2 common positions shown.
Year-by-year returns
| Year | EFA | QUAL |
|---|---|---|
| 2022 | -14.4% | -20.5% |
| 2023 | +18.4% | +30.9% |
| 2024 | +3.5% | +22.3% |
| 2025 | +31.5% | +12.7% |
| 2026 | +14.3% | +13.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EFA and QUAL good diversifiers for each other?
Only partially. A correlation of 0.74 means EFA and QUAL 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 QUAL?
The EFA/QUAL correlation stands at 0.74 on a 3-year window (1 year: 0.80, 5 years: 0.78), computed from weekly returns as of 2026-08-27.
Is QUAL a good diversifier for EFA?
Only partially. A correlation of 0.74 means EFA and QUAL share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do EFA and QUAL overlap?
The two funds share 2 holdings amounting to 0.1% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/efa-vs-qual.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/efa-vs-qual/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: EFA correlations · QUAL correlations
