EFA vs VNQ: Correlation & Overlap
How closely do iShares MSCI EAFE ETF (EFA) and Vanguard Real Estate ETF (VNQ) trade together? Their weekly returns over three years give a correlation of 0.55, which is moderate. Looking through to holdings, 0.0% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EFA and VNQ?
On 3 years of weekly data the EFA/VNQ correlation comes out at 0.55, moderate. Recent behaviour matches the longer record: 0.49 over 1 year against 0.55 over 3. The 5-year figure is 0.65, and annualized covariance runs at 137.2 %².
By 3-year correlation, VNQ places #76 of the 109 assets tracked against EFA. Over the last 12 months EFA came out ahead by 11.6 percentage points (+21.9% against +10.3%). Across three years, the rolling one-year figure varied moderately, from 0.44 to 0.83.
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 VNQ: side by side
| EFA (iShares MSCI EAFE ETF) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +21.9% | +10.3% |
| 5-year return | +56.7% | +9.5% |
| Volatility (ann.) | 14.9% | 16.6% |
| Beta vs S&P 500 | 0.77 | 0.59 |
| Max drawdown (3Y) | -14.1% | -17.5% |
| Dividend yield | 3.19% | 3.51% |
| Expense ratio | 0.32% | 0.13% |
| Assets under management | $78.0B | $73.1B |
| Sector / category | ETF · International | ETF · Real Estate |
EFA is a Foreign Large Blend fund from iShares: $78.0B under management, 666 holdings, a 0.32% expense ratio, a 3.19% trailing dividend yield. VNQ is a Real Estate fund from Vanguard: $73.1B under management, 140 holdings, a 0.13% expense ratio, a 3.51% trailing dividend yield.
Portfolio overlap between EFA and VNQ
The two portfolios are largely distinct: 0.0% of the funds' weight sits in the same underlying holdings (1 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in EFA | Weight in VNQ |
|---|---|---|
| LAND | 0.03% | 0.02% |
Largest positions held only by EFA: ASML (2.99%), HSBA (1.57%), ROP (1.42%), SAN (1.38%), NOVN (1.28%). Only by VNQ: VRTPX (14.54%), WELL (8.54%), PLD (7.04%), EQIX (5.25%), AMT (4.22%).
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 | EFA | VNQ |
|---|---|---|
| 2022 | -14.4% | -26.3% |
| 2023 | +18.4% | +11.9% |
| 2024 | +3.5% | +4.8% |
| 2025 | +31.5% | +3.2% |
| 2026 | +14.3% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EFA and VNQ good diversifiers for each other?
To a limited degree. At 0.55 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 VNQ?
As of 2026-08-27, the correlation of weekly returns between EFA and VNQ is 0.55 over 3 years, 0.49 over 1 year and 0.65 over 5 years.
Is VNQ a good diversifier for EFA?
To a limited degree. At 0.55 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 VNQ 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/efa-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/efa-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: EFA correlations · VNQ correlations
