FFA vs VTI: Correlation
How closely do First Trust Enhanced Equity Income Fund (FFA) and Vanguard Total Stock Market ETF (VTI) trade together? Their weekly returns over three years give a correlation of 0.90, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FFA and VTI?
On 3 years of weekly data the FFA/VTI correlation comes out at 0.90, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.90 over 1 year against 0.90 over 3. The 5-year figure is 0.91, and annualized covariance runs at 196.9 %².
By 3-year correlation, VTI places #4 of the 20 assets tracked against FFA. Neither side won the trailing year by much: +17.3% against +20.7%.
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.
FFA vs VTI: side by side
| FFA (First Trust Enhanced Equity Income Fund) | VTI (Vanguard Total Stock Market ETF) | |
|---|---|---|
| 1-year return | +17.3% | +20.7% |
| 5-year return | +54.8% | +74.8% |
| Volatility (ann.) | 14.9% | 14.6% |
| Beta vs S&P 500 | 0.93 | 1.01 |
| Max drawdown (3Y) | -19.9% | -19.3% |
| Market cap | $0.5B | – |
| P/E (trailing) | 5.7 | – |
| Dividend yield | 6.39% | 1.06% |
| Expense ratio | – | 0.03% |
| Assets under management | – | $2,290.0B |
| Sector / category | US Listed | ETF · US Large Cap |
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.
Year-by-year returns
| Year | FFA | VTI |
|---|---|---|
| 2022 | -20.3% | -19.5% |
| 2023 | +24.7% | +26.0% |
| 2024 | +21.5% | +23.8% |
| 2025 | +14.2% | +17.1% |
| 2026 | +8.9% | +14.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FFA and VTI good diversifiers for each other?
No. With a correlation of 0.90, FFA and VTI move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between FFA and VTI?
The FFA/VTI correlation stands at 0.90 on a 3-year window (1 year: 0.90, 5 years: 0.91), computed from weekly returns as of 2026-08-27.
Is VTI a good diversifier for FFA?
No. With a correlation of 0.90, FFA and VTI move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.90 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: FFA correlations · VTI correlations
