EFA vs VUG: Correlation & Overlap
iShares MSCI EAFE ETF (EFA) and Vanguard Growth ETF (VUG) show a strong relationship: their 3-year correlation of weekly returns is 0.63. Looking through to holdings, 0.6% 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 VUG?
Over the past 3 years, EFA and VUG moved with a correlation of 0.63, which is strong. Little has changed lately, as the 1-year reading of 0.55 lands near the 3-year figure. Over 5 years the correlation is 0.70, and the annualized covariance of weekly returns is 182.0 %².
Within EFA's tracked universe of 109 assets, VUG comes in at #55 by 3-year correlation. The trailing year gives EFA the advantage: +21.9% versus +16.2%, a 5.7-point spread. The link looks structural: the rolling one-year correlation barely moved, holding between 0.52 and 0.76.
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 VUG: side by side
| EFA (iShares MSCI EAFE ETF) | VUG (Vanguard Growth ETF) | |
|---|---|---|
| 1-year return | +21.9% | +16.2% |
| 5-year return | +56.7% | +78.4% |
| Volatility (ann.) | 14.9% | 19.4% |
| Beta vs S&P 500 | 0.77 | 1.28 |
| Max drawdown (3Y) | -14.1% | -22.8% |
| Dividend yield | 3.19% | 0.40% |
| Expense ratio | 0.32% | 0.03% |
| Assets under management | $78.0B | $372.0B |
| Sector / category | ETF · International | ETF · US Style |
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. VUG, Vanguard's Large Growth fund, carries $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% trailing dividend yield.
Portfolio overlap between EFA and VUG
The two portfolios are largely distinct: 0.6% of the funds' weight sits in the same underlying holdings (5 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in EFA | Weight in VUG |
|---|---|---|
| BA | 0.37% | 0.49% |
| HEIA | 0.11% | 0.07% |
| SUNB | 0.13% | 0.06% |
| HEI | 0.11% | 0.05% |
| EQT | 0.07% | 0.04% |
Largest positions held only by EFA: ASML (2.99%), HSBA (1.57%), ROP (1.42%), SAN (1.38%), NOVN (1.28%). Only by VUG: NVDA (12.84%), AAPL (12.63%), MSFT (9.61%), GOOGL (5.81%), AMZN (5.16%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 5 common positions shown.
Year-by-year returns
| Year | EFA | VUG |
|---|---|---|
| 2022 | -14.4% | -33.2% |
| 2023 | +18.4% | +46.8% |
| 2024 | +3.5% | +32.7% |
| 2025 | +31.5% | +19.4% |
| 2026 | +14.3% | +9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EFA and VUG good diversifiers for each other?
To a limited degree. At 0.63 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 VUG?
Using weekly returns as of 2026-08-27: 0.63 over 3 years, with 0.55 over the last year and 0.70 over 5 years.
Is VUG a good diversifier for EFA?
To a limited degree. At 0.63 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 VUG overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0.6% by weight over 5 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/efa-vs-vug.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/efa-vs-vug/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EFA correlations · VUG correlations
