FXI vs VYM: Correlation & Overlap
How closely do iShares China Large-Cap ETF (FXI) and Vanguard High Dividend Yield ETF (VYM) trade together? Their weekly returns over three years give a correlation of 0.37, which is moderate. By holdings, the two funds overlap 0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FXI and VYM?
On 3 years of weekly data the FXI/VYM correlation comes out at 0.37, moderate. The relationship has been stable: the 1-year correlation (0.42) sits close to the 3-year figure. The 5-year figure is 0.31, and annualized covariance runs at 115.7 %².
Within FXI's tracked universe of 74 assets, VYM comes in at #30 by 3-year correlation. The last year tells two different stories: VYM led by 27.2 percentage points, -6.1% for FXI against +21.1% for VYM. On a rolling one-year basis the correlation drifted between 0.26 and 0.65, a moderate band. One caveat on sizing: FXI is 2.1 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 VYM: side by side
| FXI (iShares China Large-Cap ETF) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | -6.1% | +21.1% |
| 5-year return | -1.4% | +76.6% |
| Volatility (ann.) | 25.3% | 12.3% |
| Beta vs S&P 500 | 0.68 | 0.69 |
| Max drawdown (3Y) | -23.2% | -14.5% |
| Dividend yield | 1.87% | 2.24% |
| Expense ratio | 0.73% | 0.04% |
| Assets under management | $4.3B | $99.2B |
| Sector / category | ETF · International | ETF · Dividend |
On the fund side, FXI sits in the Greater China Region category at iShares, with $4.3B under management, 50 holdings, a 0.73% expense ratio, a 1.87% trailing dividend yield. VYM, Vanguard's Large Value fund, carries $99.2B under management, 604 holdings, a 0.04% expense ratio, a 2.24% trailing dividend yield.
Portfolio overlap between FXI and VYM
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 VYM: AVGO (7.37%), JPM (3.83%), XOM (2.63%), JNJ (2.51%), CSCO (1.87%).
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 | VYM |
|---|---|---|
| 2022 | -20.7% | -0.4% |
| 2023 | -12.4% | +6.6% |
| 2024 | +29.0% | +17.6% |
| 2025 | +28.9% | +15.4% |
| 2026 | -7.3% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FXI and VYM good diversifiers for each other?
Reasonably. At 0.37, FXI and VYM keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between FXI and VYM?
Using weekly returns as of 2026-08-27: 0.37 over 3 years, with 0.42 over the last year and 0.31 over 5 years.
Is VYM a good diversifier for FXI?
Reasonably. At 0.37, FXI and VYM keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do FXI and VYM overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
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Related comparisons
Hubs: FXI correlations · VYM correlations
