EFA vs VTI: Correlation & Overlap
How closely do iShares MSCI EAFE ETF (EFA) and Vanguard Total Stock Market ETF (VTI) trade together? Their weekly returns over three years give a correlation of 0.76, which is strong. The two funds also share 1.2% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EFA and VTI?
Over the past 3 years, EFA and VTI moved with a correlation of 0.76, which is strong. Recent behaviour matches the longer record: 0.75 over 1 year against 0.76 over 3. Over 5 years the correlation is 0.80, and the annualized covariance of weekly returns is 164.8 %².
Among the 109 assets we track against EFA, VTI ranks #23 by 3-year correlation. Their 12-month results are close: +21.9% for EFA against +20.7% for VTI. 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 VTI: side by side
| EFA (iShares MSCI EAFE ETF) | VTI (Vanguard Total Stock Market ETF) | |
|---|---|---|
| 1-year return | +21.9% | +20.7% |
| 5-year return | +56.7% | +74.8% |
| Volatility (ann.) | 14.9% | 14.6% |
| Beta vs S&P 500 | 0.77 | 1.01 |
| Max drawdown (3Y) | -14.1% | -19.3% |
| Dividend yield | 3.19% | 1.06% |
| Expense ratio | 0.32% | 0.03% |
| Assets under management | $78.0B | $2,290.0B |
| Sector / category | ETF · International | ETF · US Large Cap |
On the fund side, EFA sits in the Foreign Large Blend category at iShares, with $78.0B under management, 666 holdings, a 0.32% expense ratio, a 3.19% trailing dividend yield. VTI, Vanguard's Large Blend fund, carries $2,290.0B under management, 3140 holdings, a 0.03% expense ratio, a 1.06% trailing dividend yield.
Portfolio overlap between EFA and VTI
The two portfolios are largely distinct. Weighing the shared positions, 1.2% of the two funds is identical, spread across 54 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in EFA | Weight in VTI |
|---|---|---|
| BA | 0.37% | 0.24% |
| ALL | 0.11% | 0.09% |
| MRK | 0.09% | 0.45% |
| PRU | 0.16% | 0.06% |
| ROP | 1.42% | 0.06% |
| ADM | 0.06% | 0.05% |
| HBAN | 0.09% | 0.05% |
| EQT | 0.07% | 0.05% |
| SUNB | 0.13% | 0.04% |
| TEL | 0.04% | 0.08% |
| DG | 0.29% | 0.04% |
| DTE | 0.51% | 0.03% |
| HEIA | 0.11% | 0.03% |
| SW | 0.03% | 0.03% |
| EL | 0.25% | 0.03% |
Largest positions held only by EFA: ASML (2.99%), HSBA (1.57%), SAN (1.38%), NOVN (1.28%), SHEL (1.14%). Only by VTI: NVDA (6.42%), AAPL (6.31%), MSFT (4.80%), AMZN (3.66%), GOOGL (2.91%).
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 | VTI |
|---|---|---|
| 2022 | -14.4% | -19.5% |
| 2023 | +18.4% | +26.0% |
| 2024 | +3.5% | +23.8% |
| 2025 | +31.5% | +17.1% |
| 2026 | +14.3% | +14.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EFA and VTI good diversifiers for each other?
Only partially. A correlation of 0.76 means EFA and VTI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between EFA and VTI?
As of 2026-08-27, the correlation of weekly returns between EFA and VTI is 0.76 over 3 years, 0.75 over 1 year and 0.80 over 5 years.
Is VTI a good diversifier for EFA?
Only partially. A correlation of 0.76 means EFA and VTI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do EFA and VTI overlap?
The two funds share 54 holdings amounting to 1.2% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/efa-vs-vti.json
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Related comparisons
Hubs: EFA correlations · VTI correlations
