FXI vs VNQ: Correlation & Overlap
iShares China Large-Cap ETF (FXI) and Vanguard Real Estate ETF (VNQ) show a weak relationship: their 3-year correlation of weekly returns is 0.23. Looking through to holdings, 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 VNQ?
Across a 3-year window, the weekly returns of FXI and VNQ correlate at 0.23, weak. The relationship has been stable: the 1-year correlation (0.31) sits close to the 3-year figure. Stretching to 5 years gives 0.24, with an annualized covariance of 96.1 %².
Among the 74 assets we track against FXI, VNQ ranks #59 by 3-year correlation. Correlation aside, the last 12 months split them widely, with VNQ ahead by 16.4 points (-6.1% versus +10.3%). On a rolling one-year basis the correlation drifted between 0.05 and 0.51, a moderate band. Risk is not evenly split, since FXI carries 1.5 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 VNQ: side by side
| FXI (iShares China Large-Cap ETF) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | -6.1% | +10.3% |
| 5-year return | -1.4% | +9.5% |
| Volatility (ann.) | 25.3% | 16.6% |
| Beta vs S&P 500 | 0.68 | 0.59 |
| Max drawdown (3Y) | -23.2% | -17.5% |
| Dividend yield | 1.87% | 3.51% |
| Expense ratio | 0.73% | 0.13% |
| Assets under management | $4.3B | $73.1B |
| Sector / category | ETF · International | ETF · Real Estate |
FXI, iShares's Greater China Region fund, carries $4.3B under management, 50 holdings, a 0.73% expense ratio, a 1.87% trailing dividend yield. VNQ is a Real Estate fund from Vanguard: $73.1B under management, 140 holdings, a 0.13% expense ratio, a 3.51% trailing dividend yield.
Portfolio overlap between FXI and VNQ
The two portfolios are largely distinct, with 0 holdings in common adding up to 0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by FXI: 9988 (9.72%), 939 (9.09%), 700 (8.51%), 1398 (6.35%), 1810 (5.16%). Only by VNQ: VRTPX (14.54%), WELL (8.54%), PLD (7.04%), EQIX (5.25%), AMT (4.22%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | FXI | VNQ |
|---|---|---|
| 2022 | -20.7% | -26.3% |
| 2023 | -12.4% | +11.9% |
| 2024 | +29.0% | +4.8% |
| 2025 | +28.9% | +3.2% |
| 2026 | -7.3% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FXI and VNQ good diversifiers for each other?
Reasonably. At 0.23, FXI and VNQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between FXI and VNQ?
The FXI/VNQ correlation stands at 0.23 on a 3-year window (1 year: 0.31, 5 years: 0.24), computed from weekly returns as of 2026-08-27.
Is VNQ a good diversifier for FXI?
Reasonably. At 0.23, FXI and VNQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do FXI and VNQ overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/fxi-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/fxi-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: FXI correlations · VNQ correlations
