FXI vs VEA: Correlation & Overlap
How closely do iShares China Large-Cap ETF (FXI) and Vanguard FTSE Developed Markets ETF (VEA) trade together? Their weekly returns over three years give a correlation of 0.48, which is moderate. Looking through to holdings, 0.0% 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 FXI and VEA?
On 3 years of weekly data the FXI/VEA correlation comes out at 0.48, moderate. Little has changed lately, as the 1-year reading of 0.47 lands near the 3-year figure. The 5-year figure is 0.50, and annualized covariance runs at 184.8 %².
By 3-year correlation, VEA places #19 of the 74 assets tracked against FXI. The last year tells two different stories: VEA led by 34.6 percentage points, -6.1% for FXI against +28.5% for VEA. Across three years, the rolling one-year figure varied moderately, from 0.39 to 0.72. Risk is not evenly split, since FXI carries 1.7 times the volatility of the other side.
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.
FXI vs VEA: side by side
| FXI (iShares China Large-Cap ETF) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | -6.1% | +28.5% |
| 5-year return | -1.4% | +63.5% |
| Volatility (ann.) | 25.3% | 15.1% |
| Beta vs S&P 500 | 0.68 | 0.79 |
| Max drawdown (3Y) | -23.2% | -13.5% |
| Dividend yield | 1.87% | 2.56% |
| Expense ratio | 0.73% | 0.03% |
| Assets under management | $4.3B | $314.9B |
| Sector / category | ETF · International | ETF · International |
FXI is a Greater China Region fund from iShares: $4.3B under management, 50 holdings, a 0.73% expense ratio, a 1.87% trailing dividend yield. VEA is a Foreign Large Blend fund from Vanguard: $314.9B under management, 3769 holdings, a 0.03% expense ratio, a 2.56% trailing dividend yield.
Portfolio overlap between FXI and VEA
The two portfolios are largely distinct: 0.0% of the funds' weight sits in the same underlying holdings (2 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in FXI | Weight in VEA |
|---|---|---|
| 6869 | 0.68% | 0.01% |
| 3993 | 0.69% | 0.00% |
Largest positions held only by FXI: 9988 (9.72%), 939 (9.09%), 700 (8.51%), 1398 (6.35%), 1810 (5.16%). Only by VEA: 005930 (2.53%), ASML (2.00%), 000660 (1.98%), HSBA (1.15%), ROP (0.97%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 2 common positions shown.
Year-by-year returns
| Year | FXI | VEA |
|---|---|---|
| 2022 | -20.7% | -15.3% |
| 2023 | -12.4% | +17.9% |
| 2024 | +29.0% | +3.1% |
| 2025 | +28.9% | +35.2% |
| 2026 | -7.3% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FXI and VEA good diversifiers for each other?
Reasonably. At 0.48, FXI and VEA keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between FXI and VEA?
The FXI/VEA correlation stands at 0.48 on a 3-year window (1 year: 0.47, 5 years: 0.50), computed from weekly returns as of 2026-08-27.
Is VEA a good diversifier for FXI?
Reasonably. At 0.48, FXI and VEA keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do FXI and VEA overlap?
0.0% by weight, across 2 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/fxi-vs-vea.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/fxi-vs-vea/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: FXI correlations · VEA correlations
