ACWI vs VEA: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI ACWI ETF (ACWI) and Vanguard FTSE Developed Markets ETF (VEA) carry a correlation of 0.89, a very strong link. The two funds also share 27.9% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and VEA?
Across a 3-year window, the weekly returns of ACWI and VEA correlate at 0.89, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.90 over 1 year against 0.89 over 3. Stretching to 5 years gives 0.91, with an annualized covariance of 185.0 %².
Among the 119 assets we track against ACWI, VEA ranks #17 by 3-year correlation. The trailing year gives VEA the advantage: +22.7% versus +28.5%, a 5.8-point spread. The rolling one-year correlation stayed in a tight band between 0.83 and 0.95 over the past three years, which points to a structural rather than episodic relationship.
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.
ACWI vs VEA: side by side
| ACWI (iShares MSCI ACWI ETF) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | +22.7% | +28.5% |
| 5-year return | +69.0% | +63.5% |
| Volatility (ann.) | 13.8% | 15.1% |
| Beta vs S&P 500 | 0.92 | 0.79 |
| Max drawdown (3Y) | -16.5% | -13.5% |
| Dividend yield | 1.44% | 2.56% |
| Expense ratio | 0.32% | 0.03% |
| Assets under management | $32.5B | $314.9B |
| Sector / category | ETF · Global | ETF · International |
On the fund side, ACWI sits in the Global Large-Stock Blend category at iShares, with $32.5B under management, 1590 holdings, a 0.32% expense ratio, a 1.44% trailing dividend yield. VEA is a Foreign Large Blend fund from Vanguard: $314.9B under management, 3769 holdings, a 0.03% expense ratio, a 2.56% trailing dividend yield.
Portfolio overlap between ACWI and VEA
The two portfolios partially overlap: 27.9% of the funds' weight sits in the same underlying holdings (777 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in ACWI | Weight in VEA |
|---|---|---|
| 005930 | 0.84% | 2.53% |
| ASML | 0.65% | 2.00% |
| 000660 | 0.64% | 1.98% |
| HSBA | 0.35% | 1.15% |
| ROP | 0.34% | 0.97% |
| SAN | 0.29% | 0.94% |
| RY | 0.28% | 0.92% |
| NOVN | 0.28% | 0.92% |
| SU | 0.25% | 0.83% |
| SHEL | 0.25% | 0.81% |
| NESN | 0.24% | 0.81% |
| AZN | 0.24% | 0.80% |
| SIE | 0.24% | 0.76% |
| 8306 | 0.23% | 0.77% |
| BHP | 0.23% | 0.68% |
Largest positions held only by ACWI: NVDA (4.64%), AAPL (4.41%), MSFT (3.35%), AMZN (2.41%), GOOGL (1.91%). Only by VEA: STMMI (0.11%), BKRIF (0.06%), INVEA (0.06%), JHX (0.05%), DPLM (0.04%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | ACWI | VEA |
|---|---|---|
| 2022 | -18.4% | -15.3% |
| 2023 | +22.3% | +17.9% |
| 2024 | +17.4% | +3.1% |
| 2025 | +22.4% | +35.2% |
| 2026 | +14.9% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and VEA good diversifiers for each other?
Not really. At 0.89, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between ACWI and VEA?
As of 2026-08-27, the correlation of weekly returns between ACWI and VEA is 0.89 over 3 years, 0.90 over 1 year and 0.91 over 5 years.
Is VEA a good diversifier for ACWI?
Not really. At 0.89, the two trade almost as one position, and owning both buys little extra protection.
How much do ACWI and VEA overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 27.9% by weight over 777 common positions.
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Related comparisons
Hubs: ACWI correlations · VEA correlations
