EFA vs XLV: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI EAFE ETF (EFA) and Health Care Select Sector SPDR Fund (XLV) carry a correlation of 0.52, a moderate link. 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 XLV?
Over the past 3 years, EFA and XLV moved with a correlation of 0.52, which is moderate. The past 12 months show a weaker link (0.35) than the 3-year average (0.52). Over 5 years the correlation is 0.57, and the annualized covariance of weekly returns is 114.3 %².
Among the 109 assets we track against EFA, XLV ranks #85 by 3-year correlation. The trailing year gives XLV the advantage: +21.9% versus +27.5%, a 5.6-point spread. Across three years, the rolling one-year figure varied moderately, from 0.40 to 0.66.
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 XLV: side by side
| EFA (iShares MSCI EAFE ETF) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +21.9% | +27.5% |
| 5-year return | +56.7% | +37.4% |
| Volatility (ann.) | 14.9% | 14.7% |
| Beta vs S&P 500 | 0.77 | 0.42 |
| Max drawdown (3Y) | -14.1% | -17.1% |
| Dividend yield | 3.19% | 1.56% |
| Expense ratio | 0.32% | 0.08% |
| Assets under management | $78.0B | $41.7B |
| Sector / category | ETF · International | Sector ETF |
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. On the fund side, XLV sits in the Health category at State Street Investment Management, with $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield.
Portfolio overlap between EFA and XLV
The two portfolios are largely distinct: 0.1% of the funds' weight sits in the same underlying holdings (1 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in EFA | Weight in XLV |
|---|---|---|
| MRK | 0.09% | 6.04% |
Largest positions held only by EFA: ASML (2.99%), HSBA (1.57%), ROP (1.42%), SAN (1.38%), NOVN (1.28%). Only by XLV: LLY (15.03%), JNJ (10.38%), ABBV (7.42%), UNH (5.82%), AMGN (3.80%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 1 common positions shown.
Year-by-year returns
| Year | EFA | XLV |
|---|---|---|
| 2022 | -14.4% | -2.1% |
| 2023 | +18.4% | +2.1% |
| 2024 | +3.5% | +2.5% |
| 2025 | +31.5% | +14.5% |
| 2026 | +14.3% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EFA and XLV good diversifiers for each other?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between EFA and XLV?
The EFA/XLV correlation stands at 0.52 on a 3-year window (1 year: 0.35, 5 years: 0.57), computed from weekly returns as of 2026-08-27.
Is XLV a good diversifier for EFA?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do EFA and XLV overlap?
The two funds share 1 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-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/efa-vs-xlv/)
Free with attribution; caching and terms are described in the API documentation.
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Hubs: EFA correlations · XLV correlations
