EFA vs RSP: Correlation & Overlap
How closely do iShares MSCI EAFE ETF (EFA) and Invesco S&P 500 Equal Weight ETF (RSP) trade together? Their weekly returns over three years give a correlation of 0.78, which is strong. Looking through to holdings, 2.0% 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 RSP?
On 3 years of weekly data the EFA/RSP correlation comes out at 0.78, strong. Recent behaviour matches the longer record: 0.82 over 1 year against 0.78 over 3. The 5-year figure is 0.82, and annualized covariance runs at 154.2 %².
By 3-year correlation, RSP places #18 of the 109 assets tracked against EFA. Twelve-month performance is nearly a tie, at +21.9% for EFA and +19.2% for RSP. The rolling one-year correlation moved between 0.63 and 0.90 over the past three years, a moderate range.
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 RSP: side by side
| EFA (iShares MSCI EAFE ETF) | RSP (Invesco S&P 500 Equal Weight ETF) | |
|---|---|---|
| 1-year return | +21.9% | +19.2% |
| 5-year return | +56.7% | +53.9% |
| Volatility (ann.) | 14.9% | 13.2% |
| Beta vs S&P 500 | 0.77 | 0.77 |
| Max drawdown (3Y) | -14.1% | -17.8% |
| Dividend yield | 3.19% | 1.49% |
| Expense ratio | 0.32% | 0.20% |
| Assets under management | $78.0B | $97.3B |
| Sector / category | ETF · International | ETF · US Large Cap |
EFA, iShares's Foreign Large Blend fund, carries $78.0B under management, 666 holdings, a 0.32% expense ratio, a 3.19% trailing dividend yield. On the fund side, RSP sits in the Large Blend category at Invesco, with $97.3B under management, 505 holdings, a 0.20% expense ratio, a 1.49% trailing dividend yield.
Portfolio overlap between EFA and RSP
The two portfolios are largely distinct: 2.0% of the funds' weight sits in the same underlying holdings (18 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in EFA | Weight in RSP |
|---|---|---|
| ROP | 1.42% | 0.23% |
| EL | 0.25% | 0.23% |
| DG | 0.29% | 0.21% |
| BA | 0.37% | 0.19% |
| TSCO | 0.18% | 0.21% |
| DTE | 0.51% | 0.18% |
| PRU | 0.16% | 0.22% |
| ALL | 0.11% | 0.22% |
| MRK | 0.09% | 0.24% |
| HBAN | 0.09% | 0.19% |
| BG | 0.07% | 0.17% |
| EQT | 0.07% | 0.19% |
| ADM | 0.06% | 0.18% |
| APA | 0.05% | 0.20% |
| TEL | 0.04% | 0.19% |
Largest positions held only by EFA: ASML (2.99%), HSBA (1.57%), SAN (1.38%), NOVN (1.28%), SHEL (1.14%). Only by RSP: MRNA (0.61%), ZBRA (0.31%), CRL (0.29%), DASH (0.29%), EXPE (0.28%).
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 | RSP |
|---|---|---|
| 2022 | -14.4% | -11.6% |
| 2023 | +18.4% | +13.7% |
| 2024 | +3.5% | +12.8% |
| 2025 | +31.5% | +11.2% |
| 2026 | +14.3% | +16.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EFA and RSP good diversifiers for each other?
Only partially. A correlation of 0.78 means EFA and RSP 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 RSP?
Using weekly returns as of 2026-08-27: 0.78 over 3 years, with 0.82 over the last year and 0.82 over 5 years.
Is RSP a good diversifier for EFA?
Only partially. A correlation of 0.78 means EFA and RSP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do EFA and RSP overlap?
2.0% by weight, across 18 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/efa-vs-rsp.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/efa-vs-rsp/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: EFA correlations · RSP correlations
