FXI vs IEFA: Correlation & Overlap
Measured on weekly returns over the past three years, iShares China Large-Cap ETF (FXI) and iShares Core MSCI EAFE ETF (IEFA) carry a correlation of 0.51, a moderate link. The two funds also share 0.0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FXI and IEFA?
Across a 3-year window, the weekly returns of FXI and IEFA correlate at 0.51, moderate. Recent behaviour matches the longer record: 0.53 over 1 year against 0.51 over 3. Stretching to 5 years gives 0.51, with an annualized covariance of 193.1 %².
By 3-year correlation, IEFA places #17 of the 74 assets tracked against FXI. Their recent paths diverged sharply: over the last 12 months IEFA outperformed by 27.9 percentage points (-6.1% for FXI against +21.8% for IEFA). On a rolling one-year basis the correlation drifted between 0.40 and 0.73, a moderate band. Risk is not evenly split, since FXI carries 1.7 times the volatility of the other side.
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.
FXI vs IEFA: side by side
| FXI (iShares China Large-Cap ETF) | IEFA (iShares Core MSCI EAFE ETF) | |
|---|---|---|
| 1-year return | -6.1% | +21.8% |
| 5-year return | -1.4% | +54.5% |
| Volatility (ann.) | 25.3% | 15.0% |
| Beta vs S&P 500 | 0.68 | 0.77 |
| Max drawdown (3Y) | -23.2% | -13.8% |
| Dividend yield | 1.87% | 3.35% |
| Expense ratio | 0.73% | 0.07% |
| Assets under management | $4.3B | $190.1B |
| Sector / category | ETF · International | ETF · International |
On the fund side, FXI sits in the Greater China Region category at iShares, with $4.3B under management, 50 holdings, a 0.73% expense ratio, a 1.87% trailing dividend yield. 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.
Portfolio overlap between FXI and IEFA
The two portfolios are largely distinct, with 1 holdings in common adding up to 0.0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in FXI | Weight in IEFA |
|---|---|---|
| 6869 | 0.68% | 0.02% |
Largest positions held only by FXI: 9988 (9.72%), 939 (9.09%), 700 (8.51%), 1398 (6.35%), 1810 (5.16%). Only by IEFA: ASML (2.57%), HSBA (1.35%), ROP (1.22%), SAN (1.17%), NOVN (1.10%).
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 | FXI | IEFA |
|---|---|---|
| 2022 | -20.7% | -15.2% |
| 2023 | -12.4% | +18.0% |
| 2024 | +29.0% | +3.3% |
| 2025 | +28.9% | +32.1% |
| 2026 | -7.3% | +14.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FXI and IEFA good diversifiers for each other?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between FXI and IEFA?
The FXI/IEFA correlation stands at 0.51 on a 3-year window (1 year: 0.53, 5 years: 0.51), computed from weekly returns as of 2026-08-27.
Is IEFA a good diversifier for FXI?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do FXI and IEFA overlap?
The two funds share 1 holdings amounting to 0.0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/fxi-vs-iefa.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/fxi-vs-iefa/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: FXI correlations · IEFA correlations
