Developed ex-US (EFA) vs Germany (EWG)
Live side-by-side comparison with current values, changes, and key statistics.
Why This Comparison Matters
Germany is a major EFA component and Europe proxy. EWG outperformance signals German-specific (or broader industrial-Europe) tailwinds (energy relief, China demand, weaker euro). EWG underperformance points to German manufacturing cycle stress or energy/auto-sector headwinds not shared by the broader developed universe.
Cross-Asset Analysis
This page pairs EAFE Developed (EFA) (iShares MSCI EAFE ETF, developed markets excluding US and Canada) against Germany / DAX (EWG) (iShares MSCI Germany ETF, proxy for the DAX and German equity market) to surface the specific macro signal that lives in the peer pair relationship. The EAFE Developed (EFA)-Germany / DAX (EWG) spread captures the tilt between two variants of the same asset: one may be more defensive, one more cyclical. Sector, style, and geographic dominance cycles each produce multi-year relative performance episodes between EAFE Developed (EFA) and Germany / DAX (EWG).
EAFE Developed (EFA) and Germany / DAX (EWG) look similar at a glance, but the embedded factor tilts between them matter meaningfully over time. EAFE Developed (EFA) and Germany / DAX (EWG) occupy the same asset class, and the relative performance between them isolates the specific factor that distinguishes one from the other. Structural changes inside EAFE Developed (EFA) or Germany / DAX (EWG), such as index reconstitution or methodology shifts, can break historical spread relationships in discrete jumps.
Factor exposures embedded inside EAFE Developed (EFA) and Germany / DAX (EWG) drive their relative performance, with growth-value, large-small, and domestic-international all surfacing in the spread. Factor tilts expressed through the EAFE Developed (EFA)-Germany / DAX (EWG) selection allow managers to adjust style exposure without changing their overall asset allocation.
90-Day Statistics
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Frequently Asked Questions
What is the relationship between EAFE Developed (EFA) and Germany / DAX (EWG)?+
EAFE Developed (EFA) and Germany / DAX (EWG) 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 Germany / DAX (EWG) captures the specific macro signal that flows through this relationship.
When does EAFE Developed (EFA) typically lead Germany / DAX (EWG)?+
EAFE Developed (EFA) tends to lead Germany / DAX (EWG) during rotation episodes between the two factor exposures. In those periods, moves in EAFE Developed (EFA) precede corresponding moves in Germany / DAX (EWG) by days to weeks, depending on the transmission channel and the depth of each market.
How are EAFE Developed (EFA) and Germany / DAX (EWG) historically correlated?+
Long-run correlation between EAFE Developed (EFA) and Germany / DAX (EWG) 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)-Germany / DAX (EWG) relationship.
What macro conditions drive divergence between EAFE Developed (EFA) and Germany / DAX (EWG)?+
Divergence between EAFE Developed (EFA) and Germany / DAX (EWG) 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 Germany / DAX (EWG).
Is EAFE Developed (EFA) a hedge for Germany / DAX (EWG)?+
Peers like EAFE Developed (EFA) and Germany / DAX (EWG) 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)-Germany / DAX (EWG) 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.