EFA vs VT: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI EAFE ETF (EFA) and Vanguard Total World Stock ETF (VT) carry a correlation of 0.88, a very strong link. By holdings, the two funds overlap 20.7% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EFA and VT?
Across a 3-year window, the weekly returns of EFA and VT correlate at 0.88, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.89) sits close to the 3-year figure. Stretching to 5 years gives 0.91, with an annualized covariance of 182.5 %².
By 3-year correlation, VT places #4 of the 109 assets tracked against EFA. Their 12-month results are close: +21.9% for EFA against +22.7% for VT. The link looks structural: the rolling one-year correlation barely moved, holding between 0.80 and 0.95.
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 VT: side by side
| EFA (iShares MSCI EAFE ETF) | VT (Vanguard Total World Stock ETF) | |
|---|---|---|
| 1-year return | +21.9% | +22.7% |
| 5-year return | +56.7% | +67.7% |
| Volatility (ann.) | 14.9% | 13.9% |
| Beta vs S&P 500 | 0.77 | 0.92 |
| Max drawdown (3Y) | -14.1% | -16.5% |
| Dividend yield | 3.19% | 1.59% |
| Expense ratio | 0.32% | 0.06% |
| Assets under management | $78.0B | $97.9B |
| Sector / category | ETF · International | ETF · Global |
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. VT is a Global Large-Stock Blend fund from Vanguard: $97.9B under management, 5308 holdings, a 0.06% expense ratio, a 1.59% trailing dividend yield.
Portfolio overlap between EFA and VT
The two portfolios partially overlap: 20.7% of the funds' weight sits in the same underlying holdings (650 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in EFA | Weight in VT |
|---|---|---|
| ASML | 2.99% | 0.57% |
| HSBA | 1.57% | 0.33% |
| ROP | 1.42% | 0.28% |
| SAN | 1.38% | 0.27% |
| NOVN | 1.28% | 0.26% |
| SU | 0.84% | 0.24% |
| SHEL | 1.14% | 0.23% |
| NESN | 1.13% | 0.23% |
| AZN | 1.11% | 0.23% |
| BA | 0.37% | 0.22% |
| 8306 | 1.06% | 0.22% |
| SIE | 1.10% | 0.22% |
| BHP | 1.08% | 0.19% |
| CBA | 0.82% | 0.19% |
| 7203 | 0.81% | 0.18% |
Largest positions held only by EFA: SE (0.20%), STMPA (0.14%), BIRG (0.09%), ESSITY B (0.08%), KOG (0.06%). Only by VT: NVDA (4.20%), AAPL (4.00%), MSFT (3.09%), AMZN (2.36%), GOOGL (1.89%).
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 | VT |
|---|---|---|
| 2022 | -14.4% | -18.0% |
| 2023 | +18.4% | +22.0% |
| 2024 | +3.5% | +16.5% |
| 2025 | +31.5% | +22.4% |
| 2026 | +14.3% | +15.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EFA and VT good diversifiers for each other?
No. With a correlation of 0.88, EFA and VT move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between EFA and VT?
The EFA/VT correlation stands at 0.88 on a 3-year window (1 year: 0.89, 5 years: 0.91), computed from weekly returns as of 2026-08-27.
Is VT a good diversifier for EFA?
No. With a correlation of 0.88, EFA and VT move nearly in lockstep, so holding both adds very little diversification.
How much do EFA and VT overlap?
20.7% by weight, across 650 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
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Related comparisons
Hubs: EFA correlations · VT correlations
