IAF vs IEFA: Correlation
How closely do abrdn Australia Equity Fund, Inc. (IAF) and iShares Core MSCI EAFE ETF (IEFA) trade together? Their weekly returns over three years give a correlation of 0.79, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IAF and IEFA?
Over the past 3 years, IAF and IEFA moved with a correlation of 0.79, which is strong. Recent behaviour matches the longer record: 0.82 over 1 year against 0.79 over 3. Over 5 years the correlation is 0.73, and the annualized covariance of weekly returns is 219.9 %².
IEFA is one of the assets that tracks IAF most closely: it ranks #2 out of the 14 assets we track against IAF. The trailing year gives IEFA the advantage: +9.0% versus +21.8%, a 12.8-point spread.
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.
IAF vs IEFA: side by side
| IAF (abrdn Australia Equity Fund, Inc.) | IEFA (iShares Core MSCI EAFE ETF) | |
|---|---|---|
| 1-year return | +9.0% | +21.8% |
| 5-year return | +23.6% | +54.5% |
| Volatility (ann.) | 18.6% | 15.0% |
| Beta vs S&P 500 | 0.88 | 0.77 |
| Max drawdown (3Y) | -23.6% | -13.8% |
| Market cap | $0.1B | – |
| P/E (trailing) | 7.7 | – |
| Dividend yield | 10.76% | 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 | IAF | IEFA |
|---|---|---|
| 2022 | -19.4% | -15.2% |
| 2023 | +10.4% | +18.0% |
| 2024 | +8.2% | +3.3% |
| 2025 | +14.9% | +32.1% |
| 2026 | +12.6% | +14.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IAF and IEFA good diversifiers for each other?
Somewhat, no more. With 0.79 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IAF and IEFA?
Using weekly returns as of 2026-08-27: 0.79 over 3 years, with 0.82 over the last year and 0.73 over 5 years.
Is IEFA a good diversifier for IAF?
Somewhat, no more. With 0.79 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.79 mean?
On the −1 to +1 scale, 0.79 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iaf-vs-iefa.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iaf-vs-iefa/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IAF correlations · IEFA correlations
