IAF vs VEA: Correlation
abrdn Australia Equity Fund, Inc. (IAF) and Vanguard FTSE Developed Markets ETF (VEA) show a very strong relationship: their 3-year correlation of weekly returns is 0.81.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IAF and VEA?
Across a 3-year window, the weekly returns of IAF and VEA correlate at 0.81, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.83 lands near the 3-year figure. Stretching to 5 years gives 0.75, with an annualized covariance of 227.6 %².
VEA is one of the assets that tracks IAF most closely: it ranks #1 out of the 14 assets we track against IAF. Their recent paths diverged sharply: over the last 12 months VEA outperformed by 19.5 percentage points (+9.0% for IAF against +28.5% for VEA).
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.
IAF vs VEA: side by side
| IAF (abrdn Australia Equity Fund, Inc.) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | +9.0% | +28.5% |
| 5-year return | +23.6% | +63.5% |
| Volatility (ann.) | 18.6% | 15.1% |
| Beta vs S&P 500 | 0.88 | 0.79 |
| Max drawdown (3Y) | -23.6% | -13.5% |
| Market cap | $0.1B | – |
| P/E (trailing) | 7.7 | – |
| Dividend yield | 10.76% | 2.56% |
| Expense ratio | – | 0.03% |
| Assets under management | – | $314.9B |
| Sector / category | US Listed | ETF · International |
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.
Year-by-year returns
| Year | IAF | VEA |
|---|---|---|
| 2022 | -19.4% | -15.3% |
| 2023 | +10.4% | +17.9% |
| 2024 | +8.2% | +3.1% |
| 2025 | +14.9% | +35.2% |
| 2026 | +12.6% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IAF and VEA good diversifiers for each other?
No. With a correlation of 0.81, IAF and VEA move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between IAF and VEA?
As of 2026-08-27, the correlation of weekly returns between IAF and VEA is 0.81 over 3 years, 0.83 over 1 year and 0.75 over 5 years.
Is VEA a good diversifier for IAF?
No. With a correlation of 0.81, IAF and VEA move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.81 mean?
On the −1 to +1 scale, 0.81 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iaf-vs-vea.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iaf-vs-vea/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IAF correlations · VEA correlations
