EFA vs SWZ: Correlation
iShares MSCI EAFE ETF (EFA) and Total Return Securities Fund (SWZ) show a strong relationship: their 3-year correlation of weekly returns is 0.61.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EFA and SWZ?
On 3 years of weekly data the EFA/SWZ correlation comes out at 0.61, strong. The relationship has been stable: the 1-year correlation (0.65) sits close to the 3-year figure. The 5-year figure is 0.75, and annualized covariance runs at 124.6 %².
Within EFA's tracked universe of 109 assets, SWZ comes in at #62 by 3-year correlation. Correlation aside, the last 12 months split them widely, with EFA ahead by 23.1 points (+21.9% versus -1.2%).
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 SWZ: side by side
| EFA (iShares MSCI EAFE ETF) | SWZ (Total Return Securities Fund) | |
|---|---|---|
| 1-year return | +21.9% | -1.2% |
| 5-year return | +56.7% | +13.9% |
| Volatility (ann.) | 14.9% | 13.7% |
| Beta vs S&P 500 | 0.77 | 0.41 |
| Max drawdown (3Y) | -14.1% | -15.5% |
| Market cap | – | – |
| P/E (trailing) | – | 4.3 |
| Dividend yield | 3.19% | 2.45% |
| Expense ratio | 0.32% | – |
| Assets under management | $78.0B | – |
| Sector / category | ETF · International | US Listed |
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.
Year-by-year returns
| Year | EFA | SWZ |
|---|---|---|
| 2022 | -14.4% | -17.7% |
| 2023 | +18.4% | +15.5% |
| 2024 | +3.5% | -2.5% |
| 2025 | +31.5% | +24.1% |
| 2026 | +14.3% | -3.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EFA and SWZ good diversifiers for each other?
Somewhat, no more. With 0.61 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between EFA and SWZ?
As of 2026-08-27, the correlation of weekly returns between EFA and SWZ is 0.61 over 3 years, 0.65 over 1 year and 0.75 over 5 years.
Is SWZ a good diversifier for EFA?
Somewhat, no more. With 0.61 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.61 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/efa-vs-swz.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/efa-vs-swz/)
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Related comparisons
Hubs: EFA correlations · SWZ correlations
