Developed ex-US (EFA) vs Dow Jones (DIA)
Live side-by-side comparison with current values, changes, and key statistics.
Why This Comparison Matters
EFA holds Europe, Japan, UK, Australia; DIA holds US blue-chips. When EFA outperforms DIA, dollar weakness or cyclical recovery outside the US supports international. When DIA outperforms EFA, US exceptionalism (productivity, AI capex) or dollar strength dominates. The pair captures the US-vs-rest-of-developed world rotation.
Cross-Asset Analysis
This page pairs EAFE Developed (EFA) (iShares MSCI EAFE ETF, developed markets excluding US and Canada) against Dow Jones ETF (DIA) (SPDR Dow Jones Industrial Average ETF, tracks the 30 blue-chip Dow components) to surface the specific macro signal that lives in the peer pair relationship. Interest rate cycles drive EAFE Developed (EFA) versus Dow Jones ETF (DIA) relative performance through discount-rate sensitivity, with longer-duration exposures suffering more when rates rise. EAFE Developed (EFA) and Dow Jones ETF (DIA) look similar at a glance, but the embedded factor tilts between them matter a great deal over time.
Sector, style, and geographic dominance cycles each produce multi-year relative performance episodes between EAFE Developed (EFA) and Dow Jones ETF (DIA). Factor exposures embedded inside EAFE Developed (EFA) and Dow Jones ETF (DIA) drive their relative performance, with growth-value, large-small, and domestic-international all surfacing in the spread. Overlay strategies trade the EAFE Developed (EFA)-Dow Jones ETF (DIA) spread through options or swaps when the underlying pair is directly tradable, sizing against realized spread volatility.
In bull markets the more aggressive peer between EAFE Developed (EFA) and Dow Jones ETF (DIA) generally leads, while bear markets shift leadership toward the more defensive peer. Idiosyncratic events in a concentrated peer, such as a single mega-cap earnings miss inside EAFE Developed (EFA), can move the EAFE Developed (EFA)-Dow Jones ETF (DIA) spread without broader factor signal.
90-Day Statistics
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Frequently Asked Questions
What is the relationship between EAFE Developed (EFA) and Dow Jones ETF (DIA)?+
EAFE Developed (EFA) and Dow Jones ETF (DIA) are connected through shared asset class exposure with different factor tilts. When the underlying asset class shifts, both respond, though with different sensitivities and at different speeds. The spread between EAFE Developed (EFA) and Dow Jones ETF (DIA) captures the specific macro signal that flows through this relationship.
When does EAFE Developed (EFA) typically lead Dow Jones ETF (DIA)?+
EAFE Developed (EFA) tends to lead Dow Jones ETF (DIA) during rotation episodes between the two factor exposures. In those periods, moves in EAFE Developed (EFA) precede corresponding moves in Dow Jones ETF (DIA) by days to weeks, depending on the transmission channel and the depth of each market.
How are EAFE Developed (EFA) and Dow Jones ETF (DIA) historically correlated?+
Long-run correlation between EAFE Developed (EFA) and Dow Jones ETF (DIA) varies by regime. Peers in the same asset class are highly correlated in direction, with the spread reflecting factor tilts and rotation dynamics. The correlation is not stable: it shifts with macro conditions, and the periods when it breaks down are often the most informative moments in the EAFE Developed (EFA)-Dow Jones ETF (DIA) relationship.
What macro conditions drive divergence between EAFE Developed (EFA) and Dow Jones ETF (DIA)?+
Divergence between EAFE Developed (EFA) and Dow Jones ETF (DIA) typically arises from index reconstitution, mega-cap earnings surprises, or liquidity differences between the peers. When one asset's idiosyncratic drivers dominate, the spread moves in ways that the common macro story does not predict, which is usually a signal to look more carefully at the specific drivers at work in EAFE Developed (EFA) or Dow Jones ETF (DIA).
Is EAFE Developed (EFA) a hedge for Dow Jones ETF (DIA)?+
Peers like EAFE Developed (EFA) and Dow Jones ETF (DIA) do not hedge each other; both rise or fall with the shared asset class, and using the pair as a spread trade is different from using it as a hedge. Effective hedging requires matching the hedge to the specific risk being protected, and the EAFE Developed (EFA)-Dow Jones ETF (DIA) pair is best stress-tested under scenarios the investor most worries about before being sized into a real portfolio.
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Data sourced from FRED, CoinGecko, CBOE, and other providers. This page is for informational purposes only and does not constitute financial advice. Past performance does not guarantee future results.