ICLN vs IEFA: Correlation & Overlap
How closely do iShares Global Clean Energy ETF (ICLN) and iShares Core MSCI EAFE ETF (IEFA) trade together? Their weekly returns over three years give a correlation of 0.54, which is moderate. The two funds also share 0.6% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ICLN and IEFA?
On 3 years of weekly data the ICLN/IEFA correlation comes out at 0.54, moderate. Little has changed lately, as the 1-year reading of 0.45 lands near the 3-year figure. The 5-year figure is 0.60, and annualized covariance runs at 193.7 %².
Within ICLN's tracked universe of 78 assets, IEFA comes in at #21 by 3-year correlation. Neither side won the trailing year by much: +25.6% against +21.8%. The rolling one-year correlation moved between 0.44 and 0.84 over the past three years, a moderate range. Risk is not evenly split, since ICLN carries 1.6 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.
ICLN vs IEFA: side by side
| ICLN (iShares Global Clean Energy ETF) | IEFA (iShares Core MSCI EAFE ETF) | |
|---|---|---|
| 1-year return | +25.6% | +21.8% |
| 5-year return | -18.4% | +54.5% |
| Volatility (ann.) | 24.0% | 15.0% |
| Beta vs S&P 500 | 0.78 | 0.77 |
| Max drawdown (3Y) | -34.6% | -13.8% |
| Dividend yield | 1.05% | 3.35% |
| Expense ratio | 0.39% | 0.07% |
| Assets under management | $2.3B | $190.1B |
| Sector / category | ETF · Thematic | ETF · International |
On the fund side, ICLN sits in the Miscellaneous Sector category at iShares, with $2.3B under management, 102 holdings, a 0.39% expense ratio, a 1.05% 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 ICLN and IEFA
The two portfolios are largely distinct: 0.6% of the funds' weight sits in the same underlying holdings (17 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in ICLN | Weight in IEFA |
|---|---|---|
| NXT | 6.81% | 0.12% |
| VWS | 4.36% | 0.12% |
| EDP | 2.87% | 0.06% |
| 9502 | 2.68% | 0.05% |
| ORSTED | 1.60% | 0.04% |
| ENLT | 2.04% | 0.04% |
| MEL | 0.22% | 0.03% |
| EDPR | 0.86% | 0.02% |
| TE | 0.88% | 0.02% |
| CEN | 0.32% | 0.02% |
| VER | 0.58% | 0.02% |
| NDX1 | 1.45% | 0.02% |
| ENRG | 0.28% | 0.01% |
| DORL | 0.60% | 0.01% |
| ERG | 0.38% | 0.01% |
Largest positions held only by ICLN: FSLR (7.87%), 600900 (7.64%), BE (7.36%), ENPH (4.70%), EQTL3 (3.09%). 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 15 common positions shown.
Year-by-year returns
| Year | ICLN | IEFA |
|---|---|---|
| 2022 | -5.4% | -15.2% |
| 2023 | -20.4% | +18.0% |
| 2024 | -25.7% | +3.3% |
| 2025 | +47.0% | +32.1% |
| 2026 | +8.8% | +14.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ICLN and IEFA good diversifiers for each other?
Only partially. A correlation of 0.54 means ICLN and IEFA share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between ICLN and IEFA?
The ICLN/IEFA correlation stands at 0.54 on a 3-year window (1 year: 0.45, 5 years: 0.60), computed from weekly returns as of 2026-08-27.
Is IEFA a good diversifier for ICLN?
Only partially. A correlation of 0.54 means ICLN and IEFA share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do ICLN and IEFA overlap?
0.6% by weight, across 17 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/icln-vs-iefa.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/icln-vs-iefa/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ICLN correlations · IEFA correlations
