IEFA vs MTUM: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Core MSCI EAFE ETF (IEFA) and iShares MSCI USA Momentum Factor ETF (MTUM) carry a correlation of 0.63, a strong link. By holdings, the two funds overlap 0.2% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEFA and MTUM?
On 3 years of weekly data the IEFA/MTUM correlation comes out at 0.63, strong. Recent behaviour matches the longer record: 0.61 over 1 year against 0.63 over 3. The 5-year figure is 0.67, and annualized covariance runs at 194.6 %².
Within IEFA's tracked universe of 111 assets, MTUM comes in at #55 by 3-year correlation. Twelve-month performance is nearly a tie, at +21.8% for IEFA and +25.2% for MTUM. The rolling one-year correlation moved between 0.52 and 0.77 over the past three years, a moderate range.
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 MTUM: side by side
| IEFA (iShares Core MSCI EAFE ETF) | MTUM (iShares MSCI USA Momentum Factor ETF) | |
|---|---|---|
| 1-year return | +21.8% | +25.2% |
| 5-year return | +54.5% | +76.1% |
| Volatility (ann.) | 15.0% | 20.6% |
| Beta vs S&P 500 | 0.77 | 1.25 |
| Max drawdown (3Y) | -13.8% | -21.0% |
| Dividend yield | 3.35% | 0.62% |
| Expense ratio | 0.07% | 0.15% |
| Assets under management | $190.1B | $25.3B |
| Sector / category | ETF · International | ETF · US Style |
IEFA is a Foreign Large Blend fund from iShares: $190.1B under management, 1620 holdings, a 0.07% expense ratio, a 3.35% trailing dividend yield. MTUM is a Large Blend fund from iShares: $25.3B under management, 126 holdings, a 0.15% expense ratio, a 0.62% trailing dividend yield.
Portfolio overlap between IEFA and MTUM
The two portfolios are largely distinct. Weighing the shared positions, 0.2% of the two funds is identical, spread across 5 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in IEFA | Weight in MTUM |
|---|---|---|
| BG | 0.06% | 0.08% |
| ADM | 0.05% | 0.17% |
| SN | 0.04% | 0.07% |
| NEM | 0.02% | 0.76% |
| DOW | 0.01% | 0.13% |
Largest positions held only by IEFA: ASML (2.57%), HSBA (1.35%), ROP (1.22%), SAN (1.17%), NOVN (1.10%). Only by MTUM: MU (6.60%), AMD (5.09%), AVGO (4.25%), INTC (3.91%), XOM (3.78%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 5 common positions shown.
Year-by-year returns
| Year | IEFA | MTUM |
|---|---|---|
| 2022 | -15.2% | -18.3% |
| 2023 | +18.0% | +9.1% |
| 2024 | +3.3% | +32.9% |
| 2025 | +32.1% | +22.1% |
| 2026 | +14.5% | +21.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEFA and MTUM good diversifiers for each other?
Only partially. A correlation of 0.63 means IEFA and MTUM 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 IEFA and MTUM?
Using weekly returns as of 2026-08-27: 0.63 over 3 years, with 0.61 over the last year and 0.67 over 5 years.
Is MTUM a good diversifier for IEFA?
Only partially. A correlation of 0.63 means IEFA and MTUM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do IEFA and MTUM overlap?
The two funds share 5 holdings amounting to 0.2% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
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Related comparisons
Hubs: IEFA correlations · MTUM correlations
