IEFA vs VXZ: Correlation
iShares Core MSCI EAFE ETF (IEFA) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) show a negative relationship: their 3-year correlation of weekly returns is -0.60.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEFA and VXZ?
Over the past 3 years, IEFA and VXZ moved with a correlation of -0.60, which is negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.69 lands near the 3-year figure. Over 5 years the correlation is -0.64, and the annualized covariance of weekly returns is -231.5 %².
VXZ is close to the least connected end of IEFA's tracked universe, ranking #110 of 111. Correlation aside, the last 12 months split them widely, with IEFA ahead by 37.9 points (+21.8% versus -16.1%). One caveat on sizing: VXZ is 1.7 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 VXZ: side by side
| IEFA (iShares Core MSCI EAFE ETF) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +21.8% | -16.1% |
| 5-year return | +54.5% | -53.1% |
| Volatility (ann.) | 15.0% | 25.6% |
| Beta vs S&P 500 | 0.77 | -1.31 |
| Max drawdown (3Y) | -13.8% | -36.4% |
| Dividend yield | 3.35% | – |
| 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 | VXZ |
|---|---|---|
| 2022 | -15.2% | +0.5% |
| 2023 | +18.0% | -44.0% |
| 2024 | +3.3% | -12.7% |
| 2025 | +32.1% | +5.7% |
| 2026 | +14.5% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEFA and VXZ good diversifiers for each other?
Yes. With a correlation of -0.60, IEFA and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between IEFA and VXZ?
As of 2026-08-27, the correlation of weekly returns between IEFA and VXZ is -0.60 over 3 years, -0.69 over 1 year and -0.64 over 5 years.
Is VXZ a good diversifier for IEFA?
Yes. With a correlation of -0.60, IEFA and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.60 mean?
A reading of -0.60 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iefa-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iefa-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IEFA correlations · VXZ correlations
