IEFA vs VIG: Correlation & Overlap
iShares Core MSCI EAFE ETF (IEFA) and Vanguard Dividend Appreciation ETF (VIG) show a strong relationship: their 3-year correlation of weekly returns is 0.76. The two funds also share 1.2% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEFA and VIG?
On 3 years of weekly data the IEFA/VIG correlation comes out at 0.76, strong. Recent behaviour matches the longer record: 0.79 over 1 year against 0.76 over 3. The 5-year figure is 0.79, and annualized covariance runs at 135.5 %².
By 3-year correlation, VIG places #22 of the 111 assets tracked against IEFA. Neither side won the trailing year by much: +21.8% against +17.1%. On a rolling one-year basis the correlation drifted between 0.61 and 0.88, a moderate band.
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.
IEFA vs VIG: side by side
| IEFA (iShares Core MSCI EAFE ETF) | VIG (Vanguard Dividend Appreciation ETF) | |
|---|---|---|
| 1-year return | +21.8% | +17.1% |
| 5-year return | +54.5% | +64.0% |
| Volatility (ann.) | 15.0% | 11.9% |
| Beta vs S&P 500 | 0.77 | 0.74 |
| Max drawdown (3Y) | -13.8% | -15.0% |
| Dividend yield | 3.35% | 1.50% |
| Expense ratio | 0.07% | 0.04% |
| Assets under management | $190.1B | $130.9B |
| Sector / category | ETF · International | ETF · Dividend |
On the fund side, IEFA sits in the Foreign Large Blend category at iShares, with $190.1B under management, 1620 holdings, a 0.07% expense ratio, a 3.35% trailing dividend yield. VIG, Vanguard's Large Blend fund, carries $130.9B under management, 333 holdings, a 0.04% expense ratio, a 1.50% trailing dividend yield.
Portfolio overlap between IEFA and VIG
The two portfolios are largely distinct, with 24 holdings in common adding up to 1.2% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in IEFA | Weight in VIG |
|---|---|---|
| ROP | 1.22% | 0.17% |
| DTE | 0.44% | 0.13% |
| SUNB | 0.11% | 0.13% |
| ALL | 0.09% | 0.29% |
| HEIA | 0.09% | 0.09% |
| MRK | 0.08% | 1.40% |
| TSCO | 0.15% | 0.07% |
| CSL | 0.23% | 0.06% |
| HEI | 0.10% | 0.06% |
| ADM | 0.05% | 0.17% |
| CFR | 0.48% | 0.05% |
| ORI | 0.03% | 0.04% |
| TEL | 0.03% | 0.26% |
| AMP | 0.03% | 0.21% |
| ADP | 0.02% | 0.46% |
Largest positions held only by IEFA: ASML (2.57%), HSBA (1.35%), SAN (1.17%), NOVN (1.10%), NESN (0.97%). Only by VIG: AVGO (4.65%), AAPL (4.47%), MSFT (4.35%), JPM (4.09%), LLY (3.94%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | IEFA | VIG |
|---|---|---|
| 2022 | -15.2% | -9.8% |
| 2023 | +18.0% | +14.5% |
| 2024 | +3.3% | +17.0% |
| 2025 | +32.1% | +14.2% |
| 2026 | +14.5% | +11.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEFA and VIG good diversifiers for each other?
Only partially. A correlation of 0.76 means IEFA and VIG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between IEFA and VIG?
The IEFA/VIG correlation stands at 0.76 on a 3-year window (1 year: 0.79, 5 years: 0.79), computed from weekly returns as of 2026-08-27.
Is VIG a good diversifier for IEFA?
Only partially. A correlation of 0.76 means IEFA and VIG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do IEFA and VIG overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 1.2% by weight over 24 common positions.
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Related comparisons
Hubs: IEFA correlations · VIG correlations
