IAF vs VT: Correlation
abrdn Australia Equity Fund, Inc. (IAF) and Vanguard Total World Stock ETF (VT) show a strong relationship: their 3-year correlation of weekly returns is 0.78.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IAF and VT?
On 3 years of weekly data the IAF/VT correlation comes out at 0.78, strong. Recent behaviour matches the longer record: 0.78 over 1 year against 0.78 over 3. The 5-year figure is 0.75, and annualized covariance runs at 201.6 %².
By 3-year correlation, VT places #4 of the 14 assets tracked against IAF. Over the last 12 months VT came out ahead by 13.7 percentage points (+9.0% against +22.7%).
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.
IAF vs VT: side by side
| IAF (abrdn Australia Equity Fund, Inc.) | VT (Vanguard Total World Stock ETF) | |
|---|---|---|
| 1-year return | +9.0% | +22.7% |
| 5-year return | +23.6% | +67.7% |
| Volatility (ann.) | 18.6% | 13.9% |
| Beta vs S&P 500 | 0.88 | 0.92 |
| Max drawdown (3Y) | -23.6% | -16.5% |
| Market cap | $0.1B | – |
| P/E (trailing) | 7.7 | – |
| Dividend yield | 10.76% | 1.59% |
| Expense ratio | – | 0.06% |
| Assets under management | – | $97.9B |
| Sector / category | US Listed | ETF · Global |
VT is a Global Large-Stock Blend fund from Vanguard: $97.9B under management, 5308 holdings, a 0.06% expense ratio, a 1.59% trailing dividend yield.
Year-by-year returns
| Year | IAF | VT |
|---|---|---|
| 2022 | -19.4% | -18.0% |
| 2023 | +10.4% | +22.0% |
| 2024 | +8.2% | +16.5% |
| 2025 | +14.9% | +22.4% |
| 2026 | +12.6% | +15.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IAF and VT good diversifiers for each other?
To a limited degree. At 0.78 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between IAF and VT?
The IAF/VT correlation stands at 0.78 on a 3-year window (1 year: 0.78, 5 years: 0.75), computed from weekly returns as of 2026-08-27.
Is VT a good diversifier for IAF?
To a limited degree. At 0.78 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.78 mean?
On the −1 to +1 scale, 0.78 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-vt.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/iaf-vs-vt/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IAF correlations · VT correlations
