IEFA vs XLRE: Correlation & Overlap
How closely do iShares Core MSCI EAFE ETF (IEFA) and Real Estate Select Sector SPDR Fund (XLRE) trade together? Their weekly returns over three years give a correlation of 0.54, which is moderate. The two funds also share 0.0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEFA and XLRE?
Across a 3-year window, the weekly returns of IEFA and XLRE correlate at 0.54, moderate. The relationship has been stable: the 1-year correlation (0.47) sits close to the 3-year figure. Stretching to 5 years gives 0.63, with an annualized covariance of 136.1 %².
By 3-year correlation, XLRE places #81 of the 111 assets tracked against IEFA. Over the last 12 months IEFA came out ahead by 12.3 percentage points (+21.8% against +9.5%). The rolling one-year correlation moved between 0.42 and 0.82 over the past three years, a moderate range.
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 XLRE: side by side
| IEFA (iShares Core MSCI EAFE ETF) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +21.8% | +9.5% |
| 5-year return | +54.5% | +11.4% |
| Volatility (ann.) | 15.0% | 16.7% |
| Beta vs S&P 500 | 0.77 | 0.57 |
| Max drawdown (3Y) | -13.8% | -16.6% |
| Dividend yield | 3.35% | 3.12% |
| Expense ratio | 0.07% | 0.08% |
| Assets under management | $190.1B | $8.6B |
| Sector / category | ETF · International | Sector ETF |
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. On the fund side, XLRE sits in the Real Estate category at State Street Investment Management, with $8.6B under management, 31 holdings, a 0.08% expense ratio, a 3.12% trailing dividend yield.
Portfolio overlap between IEFA and XLRE
The two portfolios are largely distinct. Weighing the shared positions, 0.0% of the two funds is identical, spread across 1 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in IEFA | Weight in XLRE |
|---|---|---|
| DOC | 0.01% | 1.50% |
Largest positions held only by IEFA: ASML (2.57%), HSBA (1.35%), ROP (1.22%), SAN (1.17%), NOVN (1.10%). Only by XLRE: WELL (11.43%), PLD (9.06%), EQIX (7.14%), AMT (5.49%), DLR (5.01%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 1 common positions shown.
Year-by-year returns
| Year | IEFA | XLRE |
|---|---|---|
| 2022 | -15.2% | -26.2% |
| 2023 | +18.0% | +12.4% |
| 2024 | +3.3% | +5.1% |
| 2025 | +32.1% | +2.6% |
| 2026 | +14.5% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEFA and XLRE good diversifiers for each other?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IEFA and XLRE?
The IEFA/XLRE correlation stands at 0.54 on a 3-year window (1 year: 0.47, 5 years: 0.63), computed from weekly returns as of 2026-08-27.
Is XLRE a good diversifier for IEFA?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do IEFA and XLRE overlap?
0.0% by weight, across 1 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iefa-vs-xlre.json
Embed this badge (it refreshes with the data), with attribution:
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Related comparisons
Hubs: IEFA correlations · XLRE correlations
