IEFA vs TM: Correlation
iShares Core MSCI EAFE ETF (IEFA) and Toyota Motor Corporation (TM) show a moderate relationship: their 3-year correlation of weekly returns is 0.58.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEFA and TM?
On 3 years of weekly data the IEFA/TM correlation comes out at 0.58, moderate. Recent behaviour matches the longer record: 0.59 over 1 year against 0.58 over 3. The 5-year figure is 0.58, and annualized covariance runs at 250.5 %².
Within IEFA's tracked universe of 111 assets, TM comes in at #72 by 3-year correlation. Correlation aside, the last 12 months split them widely, with IEFA ahead by 24.2 points (+21.8% versus -2.4%). Risk is not evenly split, since TM carries 1.9 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.
IEFA vs TM: side by side
| IEFA (iShares Core MSCI EAFE ETF) | TM (Toyota Motor Corporation) | |
|---|---|---|
| 1-year return | +21.8% | -2.4% |
| 5-year return | +54.5% | +24.1% |
| Volatility (ann.) | 15.0% | 28.9% |
| Beta vs S&P 500 | 0.77 | 0.83 |
| Max drawdown (3Y) | -13.8% | -34.9% |
| Market cap | – | $227.4B |
| P/E (trailing) | – | 8.7 |
| Dividend yield | 3.35% | 49.52% |
| Expense ratio | 0.07% | – |
| Assets under management | $190.1B | – |
| Sector / category | ETF · International | US Listed |
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.
Year-by-year returns
| Year | IEFA | TM |
|---|---|---|
| 2022 | -15.2% | -24.4% |
| 2023 | +18.0% | +38.2% |
| 2024 | +3.3% | +8.9% |
| 2025 | +32.1% | +12.2% |
| 2026 | +14.5% | -10.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEFA and TM good diversifiers for each other?
Only partially. A correlation of 0.58 means IEFA and TM 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 TM?
As of 2026-08-27, the correlation of weekly returns between IEFA and TM is 0.58 over 3 years, 0.59 over 1 year and 0.58 over 5 years.
Is TM a good diversifier for IEFA?
Only partially. A correlation of 0.58 means IEFA and TM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.58 mean?
On the −1 to +1 scale, 0.58 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-tm.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iefa-vs-tm/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IEFA correlations · TM correlations
