EFA vs VOO: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI EAFE ETF (EFA) and Vanguard S&P 500 ETF (VOO) carry a correlation of 0.75, a strong link. The two funds also share 1.1% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EFA and VOO?
On 3 years of weekly data the EFA/VOO correlation comes out at 0.75, strong. Recent behaviour matches the longer record: 0.73 over 1 year against 0.75 over 3. The 5-year figure is 0.79, and annualized covariance runs at 160.2 %².
By 3-year correlation, VOO places #28 of the 109 assets tracked against EFA. Twelve-month performance is nearly a tie, at +21.9% for EFA and +20.6% for VOO. Stability stands out here, with the rolling one-year correlation confined to 0.62 through 0.86.
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 VOO: side by side
| EFA (iShares MSCI EAFE ETF) | VOO (Vanguard S&P 500 ETF) | |
|---|---|---|
| 1-year return | +21.9% | +20.6% |
| 5-year return | +56.7% | +83.0% |
| Volatility (ann.) | 14.9% | 14.4% |
| Beta vs S&P 500 | 0.77 | 0.99 |
| Max drawdown (3Y) | -14.1% | -18.7% |
| Dividend yield | 3.19% | 1.07% |
| Expense ratio | 0.32% | 0.03% |
| Assets under management | $78.0B | $1,686.9B |
| Sector / category | ETF · International | ETF · US Large Cap |
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. VOO, Vanguard's Large Blend fund, carries $1,686.9B under management, 503 holdings, a 0.03% expense ratio, a 1.07% trailing dividend yield.
Portfolio overlap between EFA and VOO
The two portfolios are largely distinct. Weighing the shared positions, 1.1% of the two funds is identical, spread across 18 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in EFA | Weight in VOO |
|---|---|---|
| BA | 0.37% | 0.26% |
| ALL | 0.11% | 0.11% |
| MRK | 0.09% | 0.50% |
| PRU | 0.16% | 0.07% |
| ROP | 1.42% | 0.06% |
| ADM | 0.06% | 0.06% |
| HBAN | 0.09% | 0.05% |
| EQT | 0.07% | 0.05% |
| DTE | 0.51% | 0.05% |
| DG | 0.29% | 0.04% |
| TEL | 0.04% | 0.09% |
| EL | 0.25% | 0.03% |
| SW | 0.03% | 0.04% |
| TSCO | 0.18% | 0.03% |
| BG | 0.07% | 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 VOO: NVDA (7.56%), AAPL (7.05%), MSFT (5.37%), AMZN (4.13%), GOOGL (3.25%).
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 | EFA | VOO |
|---|---|---|
| 2022 | -14.4% | -18.2% |
| 2023 | +18.4% | +26.3% |
| 2024 | +3.5% | +25.0% |
| 2025 | +31.5% | +17.8% |
| 2026 | +14.3% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EFA and VOO good diversifiers for each other?
To a limited degree. At 0.75 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 VOO?
The EFA/VOO correlation stands at 0.75 on a 3-year window (1 year: 0.73, 5 years: 0.79), computed from weekly returns as of 2026-08-27.
Is VOO a good diversifier for EFA?
To a limited degree. At 0.75 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 VOO overlap?
The two funds share 18 holdings amounting to 1.1% of weight, per issuer portfolio files dated 2026-08-26.
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