EFA vs VIG: Correlation & Overlap
How closely do iShares MSCI EAFE ETF (EFA) and Vanguard Dividend Appreciation ETF (VIG) trade together? Their weekly returns over three years give a correlation of 0.76, which is strong. By holdings, the two funds overlap 1.1% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EFA and VIG?
Across a 3-year window, the weekly returns of EFA and VIG correlate at 0.76, strong. The relationship has been stable: the 1-year correlation (0.78) sits close to the 3-year figure. Stretching to 5 years gives 0.79, with an annualized covariance of 135.3 %².
Among the 109 assets we track against EFA, VIG ranks #22 by 3-year correlation. Twelve-month performance is nearly a tie, at +21.9% for EFA and +17.1% for VIG. The rolling one-year correlation moved between 0.61 and 0.88 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.
EFA vs VIG: side by side
| EFA (iShares MSCI EAFE ETF) | VIG (Vanguard Dividend Appreciation ETF) | |
|---|---|---|
| 1-year return | +21.9% | +17.1% |
| 5-year return | +56.7% | +64.0% |
| Volatility (ann.) | 14.9% | 11.9% |
| Beta vs S&P 500 | 0.77 | 0.74 |
| Max drawdown (3Y) | -14.1% | -15.0% |
| Dividend yield | 3.19% | 1.50% |
| Expense ratio | 0.32% | 0.04% |
| Assets under management | $78.0B | $130.9B |
| Sector / category | ETF · International | ETF · Dividend |
EFA, iShares's Foreign Large Blend fund, carries $78.0B under management, 666 holdings, a 0.32% expense ratio, a 3.19% trailing dividend yield. VIG, Vanguard's Large Blend fund, carries $130.9B under management, 333 holdings, a 0.04% expense ratio, a 1.50% trailing dividend yield.
Portfolio overlap between EFA and VIG
The two portfolios are largely distinct: 1.1% of the funds' weight sits in the same underlying holdings (14 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in EFA | Weight in VIG |
|---|---|---|
| ROP | 1.42% | 0.17% |
| DTE | 0.51% | 0.13% |
| SUNB | 0.13% | 0.13% |
| ALL | 0.11% | 0.29% |
| MRK | 0.09% | 1.40% |
| HEIA | 0.11% | 0.09% |
| TSCO | 0.18% | 0.07% |
| CSL | 0.26% | 0.06% |
| HEI | 0.11% | 0.06% |
| ADM | 0.06% | 0.17% |
| CFR | 0.56% | 0.05% |
| TEL | 0.04% | 0.26% |
| ADP | 0.02% | 0.46% |
| UCB | 0.14% | 0.02% |
Largest positions held only by EFA: ASML (2.99%), HSBA (1.57%), SAN (1.38%), NOVN (1.28%), SHEL (1.14%). Only by VIG: AVGO (4.65%), AAPL (4.47%), MSFT (4.35%), JPM (4.09%), LLY (3.94%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 14 common positions shown.
Year-by-year returns
| Year | EFA | VIG |
|---|---|---|
| 2022 | -14.4% | -9.8% |
| 2023 | +18.4% | +14.5% |
| 2024 | +3.5% | +17.0% |
| 2025 | +31.5% | +14.2% |
| 2026 | +14.3% | +11.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EFA and VIG good diversifiers for each other?
To a limited degree. At 0.76 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between EFA and VIG?
As of 2026-08-27, the correlation of weekly returns between EFA and VIG is 0.76 over 3 years, 0.78 over 1 year and 0.79 over 5 years.
Is VIG a good diversifier for EFA?
To a limited degree. At 0.76 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do EFA and VIG overlap?
The two funds share 14 holdings amounting to 1.1% of weight, per issuer portfolio files dated 2026-08-26.
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Related comparisons
Hubs: EFA correlations · VIG correlations
