IEFA vs IVV: Correlation & Overlap
iShares Core MSCI EAFE ETF (IEFA) and iShares Core S&P 500 ETF (IVV) show a strong relationship: their 3-year correlation of weekly returns is 0.75. The two funds also share 1.1% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEFA and IVV?
Across a 3-year window, the weekly returns of IEFA and IVV correlate at 0.75, strong. The relationship has been stable: the 1-year correlation (0.74) sits close to the 3-year figure. Stretching to 5 years gives 0.79, with an annualized covariance of 162.6 %².
By 3-year correlation, IVV places #26 of the 111 assets tracked against IEFA. Neither side won the trailing year by much: +21.8% against +20.7%. Stability stands out here, with the rolling one-year correlation confined to 0.62 through 0.86.
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.
IEFA vs IVV: side by side
| IEFA (iShares Core MSCI EAFE ETF) | IVV (iShares Core S&P 500 ETF) | |
|---|---|---|
| 1-year return | +21.8% | +20.7% |
| 5-year return | +54.5% | +83.0% |
| Volatility (ann.) | 15.0% | 14.5% |
| Beta vs S&P 500 | 0.77 | 1.00 |
| Max drawdown (3Y) | -13.8% | -18.8% |
| Dividend yield | 3.35% | 1.09% |
| Expense ratio | 0.07% | 0.03% |
| Assets under management | $190.1B | $869.2B |
| Sector / category | ETF · International | ETF · US Large Cap |
On the fund side, IEFA sits in the Foreign Large Blend category at iShares, with $190.1B under management, 1620 holdings, a 0.07% expense ratio, a 3.35% trailing dividend yield. IVV is a Large Blend fund from iShares: $869.2B under management, 503 holdings, a 0.03% expense ratio, a 1.09% trailing dividend yield.
Portfolio overlap between IEFA and IVV
The two portfolios are largely distinct, with 30 holdings in common adding up to 1.1% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in IEFA | Weight in IVV |
|---|---|---|
| BA | 0.31% | 0.25% |
| ALL | 0.09% | 0.10% |
| MRK | 0.08% | 0.57% |
| ROP | 1.22% | 0.06% |
| PRU | 0.17% | 0.06% |
| EQT | 0.06% | 0.05% |
| ADM | 0.05% | 0.06% |
| HBAN | 0.08% | 0.05% |
| DTE | 0.44% | 0.04% |
| DG | 0.25% | 0.04% |
| EL | 0.21% | 0.04% |
| TSCO | 0.15% | 0.03% |
| TEL | 0.03% | 0.09% |
| AMP | 0.03% | 0.08% |
| BBY | 0.02% | 0.03% |
Largest positions held only by IEFA: ASML (2.57%), HSBA (1.35%), SAN (1.17%), NOVN (1.10%), NESN (0.97%). Only by IVV: NVDA (7.67%), AAPL (6.96%), MSFT (5.57%), AMZN (3.85%), GOOGL (3.03%).
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 | IEFA | IVV |
|---|---|---|
| 2022 | -15.2% | -18.2% |
| 2023 | +18.0% | +26.3% |
| 2024 | +3.3% | +24.9% |
| 2025 | +32.1% | +17.8% |
| 2026 | +14.5% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEFA and IVV good diversifiers for each other?
To a limited degree. At 0.75 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between IEFA and IVV?
Using weekly returns as of 2026-08-27: 0.75 over 3 years, with 0.74 over the last year and 0.79 over 5 years.
Is IVV a good diversifier for IEFA?
To a limited degree. At 0.75 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do IEFA and IVV overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 1.1% by weight over 30 common positions.
Use this data
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Related comparisons
Hubs: IEFA correlations · IVV correlations
