IEFA vs USMV: Correlation & Overlap
iShares Core MSCI EAFE ETF (IEFA) and iShares MSCI USA Min Vol Factor ETF (USMV) show a strong relationship: their 3-year correlation of weekly returns is 0.67. The two funds also share 1.3% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEFA and USMV?
Across a 3-year window, the weekly returns of IEFA and USMV correlate at 0.67, strong. The past 12 months show a weaker link (0.55) than the 3-year average (0.67). Stretching to 5 years gives 0.70, with an annualized covariance of 99.2 %².
By 3-year correlation, USMV places #44 of the 111 assets tracked against IEFA. Over the last 12 months IEFA came out ahead by 11.7 percentage points (+21.8% against +10.1%). The rolling one-year correlation moved between 0.56 and 0.82 over the past three years, a moderate range. One caveat on sizing: IEFA is 1.5 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 USMV: side by side
| IEFA (iShares Core MSCI EAFE ETF) | USMV (iShares MSCI USA Min Vol Factor ETF) | |
|---|---|---|
| 1-year return | +21.8% | +10.1% |
| 5-year return | +54.5% | +42.3% |
| Volatility (ann.) | 15.0% | 9.9% |
| Beta vs S&P 500 | 0.77 | 0.51 |
| Max drawdown (3Y) | -13.8% | -9.4% |
| Dividend yield | 3.35% | 1.48% |
| Expense ratio | 0.07% | 0.15% |
| Assets under management | $190.1B | $23.6B |
| 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. USMV, iShares's Large Blend fund, carries $23.6B under management, 164 holdings, a 0.15% expense ratio, a 1.48% trailing dividend yield.
Portfolio overlap between IEFA and USMV
The two portfolios are largely distinct. Weighing the shared positions, 1.3% of the two funds is identical, spread across 8 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in IEFA | Weight in USMV |
|---|---|---|
| ROP | 1.22% | 1.02% |
| ALL | 0.09% | 0.57% |
| MRK | 0.08% | 1.54% |
| TEL | 0.03% | 0.53% |
| TW | 0.02% | 0.14% |
| ADP | 0.02% | 0.08% |
| NEM | 0.02% | 1.65% |
| RSG | 0.01% | 1.26% |
Largest positions held only by IEFA: ASML (2.57%), HSBA (1.35%), SAN (1.17%), NOVN (1.10%), NESN (0.97%). Only by USMV: MSFT (1.68%), VRTX (1.63%), JNJ (1.58%), WELL (1.57%), APH (1.54%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 8 common positions shown.
Year-by-year returns
| Year | IEFA | USMV |
|---|---|---|
| 2022 | -15.2% | -9.4% |
| 2023 | +18.0% | +10.3% |
| 2024 | +3.3% | +15.7% |
| 2025 | +32.1% | +7.6% |
| 2026 | +14.5% | +9.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEFA and USMV good diversifiers for each other?
Only partially. A correlation of 0.67 means IEFA and USMV 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 USMV?
The IEFA/USMV correlation stands at 0.67 on a 3-year window (1 year: 0.55, 5 years: 0.70), computed from weekly returns as of 2026-08-27.
Is USMV a good diversifier for IEFA?
Only partially. A correlation of 0.67 means IEFA and USMV share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do IEFA and USMV overlap?
The two funds share 8 holdings amounting to 1.3% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iefa-vs-usmv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iefa-vs-usmv/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IEFA correlations · USMV correlations
