IEFA vs SWZ: Correlation
iShares Core MSCI EAFE ETF (IEFA) and Total Return Securities Fund (SWZ) show a strong relationship: their 3-year correlation of weekly returns is 0.61.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEFA and SWZ?
Across a 3-year window, the weekly returns of IEFA and SWZ correlate at 0.61, strong. Recent behaviour matches the longer record: 0.64 over 1 year against 0.61 over 3. Stretching to 5 years gives 0.75, with an annualized covariance of 124.2 %².
Within IEFA's tracked universe of 111 assets, SWZ comes in at #62 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months IEFA outperformed by 23.0 percentage points (+21.8% for IEFA against -1.2% for SWZ).
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 SWZ: side by side
| IEFA (iShares Core MSCI EAFE ETF) | SWZ (Total Return Securities Fund) | |
|---|---|---|
| 1-year return | +21.8% | -1.2% |
| 5-year return | +54.5% | +13.9% |
| Volatility (ann.) | 15.0% | 13.7% |
| Beta vs S&P 500 | 0.77 | 0.41 |
| Max drawdown (3Y) | -13.8% | -15.5% |
| Market cap | – | – |
| P/E (trailing) | – | 4.3 |
| Dividend yield | 3.35% | 2.45% |
| Expense ratio | 0.07% | – |
| Assets under management | $190.1B | – |
| Sector / category | ETF · International | US Listed |
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 | IEFA | SWZ |
|---|---|---|
| 2022 | -15.2% | -17.7% |
| 2023 | +18.0% | +15.5% |
| 2024 | +3.3% | -2.5% |
| 2025 | +32.1% | +24.1% |
| 2026 | +14.5% | -3.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEFA and SWZ good diversifiers for each other?
To a limited degree. At 0.61 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 SWZ?
Using weekly returns as of 2026-08-27: 0.61 over 3 years, with 0.64 over the last year and 0.75 over 5 years.
Is SWZ a good diversifier for IEFA?
To a limited degree. At 0.61 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.61 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iefa-vs-swz.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/iefa-vs-swz/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IEFA correlations · SWZ correlations
