IEFA vs TEL: Correlation
Measured on weekly returns over the past three years, iShares Core MSCI EAFE ETF (IEFA) and TE Connectivity (TEL) carry a correlation of 0.67, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEFA and TEL?
Across a 3-year window, the weekly returns of IEFA and TEL correlate at 0.67, strong. Little has changed lately, as the 1-year reading of 0.63 lands near the 3-year figure. Stretching to 5 years gives 0.69, with an annualized covariance of 287.4 %².
By 3-year correlation, TEL places #43 of the 111 assets tracked against IEFA. Their recent paths diverged sharply: over the last 12 months IEFA outperformed by 22.9 percentage points (+21.8% for IEFA against -1.1% for TEL). The rolling one-year correlation stayed in a tight band between 0.57 and 0.79 over the past three years, which points to a structural rather than episodic relationship. Note the risk asymmetry: TEL runs 1.9 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 TEL: side by side
| IEFA (iShares Core MSCI EAFE ETF) | TEL (TE Connectivity) | |
|---|---|---|
| 1-year return | +21.8% | -1.1% |
| 5-year return | +54.5% | +43.7% |
| Volatility (ann.) | 15.0% | 28.8% |
| Beta vs S&P 500 | 0.77 | 1.32 |
| Max drawdown (3Y) | -13.8% | -22.6% |
| Market cap | – | $58.8B |
| P/E (trailing) | – | 20.1 |
| Dividend yield | 3.35% | 1.42% |
| Expense ratio | 0.07% | – |
| Assets under management | $190.1B | – |
| Sector / category | ETF · International | Information Technology |
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 | TEL |
|---|---|---|
| 2022 | -15.2% | -27.7% |
| 2023 | +18.0% | +24.6% |
| 2024 | +3.3% | +3.5% |
| 2025 | +32.1% | +61.1% |
| 2026 | +14.5% | -9.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEFA and TEL good diversifiers for each other?
To a limited degree. At 0.67 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 TEL?
As of 2026-08-27, the correlation of weekly returns between IEFA and TEL is 0.67 over 3 years, 0.63 over 1 year and 0.69 over 5 years.
Is TEL a good diversifier for IEFA?
To a limited degree. At 0.67 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 0.67 mean?
On the −1 to +1 scale, 0.67 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/iefa-vs-tel.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iefa-vs-tel/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IEFA correlations · TEL correlations
