EFA vs USMV: Correlation & Overlap
How closely do iShares MSCI EAFE ETF (EFA) and iShares MSCI USA Min Vol Factor ETF (USMV) trade together? Their weekly returns over three years give a correlation of 0.67, which is strong. Looking through to holdings, 1.3% 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 USMV?
Over the past 3 years, EFA and USMV moved with a correlation of 0.67, which is strong. The past 12 months show a weaker link (0.54) than the 3-year average (0.67). Over 5 years the correlation is 0.70, and the annualized covariance of weekly returns is 98.7 %².
By 3-year correlation, USMV places #45 of the 109 assets tracked against EFA. The trailing year gives EFA the advantage: +21.9% versus +10.1%, a 11.8-point spread. Across three years, the rolling one-year figure varied moderately, from 0.55 to 0.83. One caveat on sizing: EFA is 1.5 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 USMV: side by side
| EFA (iShares MSCI EAFE ETF) | USMV (iShares MSCI USA Min Vol Factor ETF) | |
|---|---|---|
| 1-year return | +21.9% | +10.1% |
| 5-year return | +56.7% | +42.3% |
| Volatility (ann.) | 14.9% | 9.9% |
| Beta vs S&P 500 | 0.77 | 0.51 |
| Max drawdown (3Y) | -14.1% | -9.4% |
| Dividend yield | 3.19% | 1.48% |
| Expense ratio | 0.32% | 0.15% |
| Assets under management | $78.0B | $23.6B |
| 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. USMV, iShares's Large Blend fund, carries $23.6B under management, 164 holdings, a 0.15% expense ratio, a 1.48% trailing dividend yield.
Portfolio overlap between EFA and USMV
The two portfolios are largely distinct. Weighing the shared positions, 1.3% of the two funds is identical, spread across 6 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in EFA | Weight in USMV |
|---|---|---|
| ROP | 1.42% | 1.02% |
| ALL | 0.11% | 0.57% |
| MRK | 0.09% | 1.54% |
| TEL | 0.04% | 0.53% |
| ADP | 0.02% | 0.08% |
| NEM | 0.02% | 1.65% |
Largest positions held only by EFA: ASML (2.99%), HSBA (1.57%), SAN (1.38%), NOVN (1.28%), SHEL (1.14%). Only by USMV: MSFT (1.68%), VRTX (1.63%), JNJ (1.58%), WELL (1.57%), APH (1.54%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 6 common positions shown.
Year-by-year returns
| Year | EFA | USMV |
|---|---|---|
| 2022 | -14.4% | -9.4% |
| 2023 | +18.4% | +10.3% |
| 2024 | +3.5% | +15.7% |
| 2025 | +31.5% | +7.6% |
| 2026 | +14.3% | +9.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EFA and USMV good diversifiers for each other?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between EFA and USMV?
Using weekly returns as of 2026-08-27: 0.67 over 3 years, with 0.54 over the last year and 0.70 over 5 years.
Is USMV a good diversifier for EFA?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do EFA and USMV overlap?
The two funds share 6 holdings amounting to 1.3% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/efa-vs-usmv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/efa-vs-usmv/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EFA correlations · USMV correlations
