ETO vs IEFA: Correlation
Eaton Vance Tax-Advantage Global Dividend Opp (ETO) and iShares Core MSCI EAFE ETF (IEFA) show a very strong relationship: their 3-year correlation of weekly returns is 0.86.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ETO and IEFA?
Across a 3-year window, the weekly returns of ETO and IEFA correlate at 0.86, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.85 over 1 year against 0.86 over 3. Stretching to 5 years gives 0.82, with an annualized covariance of 213.4 %².
Within ETO's tracked universe of 38 assets, IEFA comes in at #8 by 3-year correlation. Their 12-month results are close: +24.4% for ETO against +21.8% for IEFA.
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.
ETO vs IEFA: side by side
| ETO (Eaton Vance Tax-Advantage Global Dividend Opp) | IEFA (iShares Core MSCI EAFE ETF) | |
|---|---|---|
| 1-year return | +24.4% | +21.8% |
| 5-year return | +43.6% | +54.5% |
| Volatility (ann.) | 16.6% | 15.0% |
| Beta vs S&P 500 | 1.02 | 0.77 |
| Max drawdown (3Y) | -18.2% | -13.8% |
| Market cap | $0.5B | – |
| P/E (trailing) | 3.8 | – |
| Dividend yield | 6.57% | 3.35% |
| Expense ratio | – | 0.07% |
| Assets under management | – | $190.1B |
| Sector / category | US Listed | ETF · International |
IEFA, iShares's Foreign Large Blend fund, carries $190.1B under management, 1620 holdings, a 0.07% expense ratio, a 3.35% trailing dividend yield.
Year-by-year returns
| Year | ETO | IEFA |
|---|---|---|
| 2022 | -30.0% | -15.2% |
| 2023 | +21.5% | +18.0% |
| 2024 | +15.5% | +3.3% |
| 2025 | +29.9% | +32.1% |
| 2026 | +9.4% | +14.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ETO and IEFA good diversifiers for each other?
Not really. At 0.86, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between ETO and IEFA?
Using weekly returns as of 2026-08-27: 0.86 over 3 years, with 0.85 over the last year and 0.82 over 5 years.
Is IEFA a good diversifier for ETO?
Not really. At 0.86, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.86 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/eto-vs-iefa.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/eto-vs-iefa/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ETO correlations · IEFA correlations
