IEFA vs VOO: Correlation & Overlap
How closely do iShares Core MSCI EAFE ETF (IEFA) and Vanguard S&P 500 ETF (VOO) trade together? Their weekly returns over three years give a correlation of 0.75, which is strong. By holdings, the two funds overlap 1.2% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEFA and VOO?
On 3 years of weekly data the IEFA/VOO correlation comes out at 0.75, strong. Little has changed lately, as the 1-year reading of 0.74 lands near the 3-year figure. The 5-year figure is 0.79, and annualized covariance runs at 161.0 %².
By 3-year correlation, VOO places #28 of the 111 assets tracked against IEFA. Their 12-month results are close: +21.8% for IEFA against +20.6% for VOO. The rolling one-year correlation stayed in a tight band between 0.62 and 0.86 over the past three years, which points to a structural rather than episodic relationship.
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 VOO: side by side
| IEFA (iShares Core MSCI EAFE ETF) | VOO (Vanguard S&P 500 ETF) | |
|---|---|---|
| 1-year return | +21.8% | +20.6% |
| 5-year return | +54.5% | +83.0% |
| Volatility (ann.) | 15.0% | 14.4% |
| Beta vs S&P 500 | 0.77 | 0.99 |
| Max drawdown (3Y) | -13.8% | -18.7% |
| Dividend yield | 3.35% | 1.07% |
| Expense ratio | 0.07% | 0.03% |
| Assets under management | $190.1B | $1,686.9B |
| Sector / category | ETF · International | ETF · US Large Cap |
IEFA is a Foreign Large Blend fund from iShares: $190.1B under management, 1620 holdings, a 0.07% expense ratio, a 3.35% trailing dividend yield. VOO, Vanguard's Large Blend fund, carries $1,686.9B under management, 503 holdings, a 0.03% expense ratio, a 1.07% trailing dividend yield.
Portfolio overlap between IEFA and VOO
The two portfolios are largely distinct, with 30 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 VOO |
|---|---|---|
| BA | 0.31% | 0.26% |
| ALL | 0.09% | 0.11% |
| MRK | 0.08% | 0.50% |
| PRU | 0.17% | 0.07% |
| ROP | 1.22% | 0.06% |
| HBAN | 0.08% | 0.05% |
| EQT | 0.06% | 0.05% |
| ADM | 0.05% | 0.06% |
| DTE | 0.44% | 0.05% |
| DG | 0.25% | 0.04% |
| EL | 0.21% | 0.03% |
| TEL | 0.03% | 0.09% |
| AMP | 0.03% | 0.08% |
| TSCO | 0.15% | 0.03% |
| BG | 0.06% | 0.02% |
Largest positions held only by IEFA: ASML (2.57%), HSBA (1.35%), SAN (1.17%), NOVN (1.10%), NESN (0.97%). Only by VOO: NVDA (7.56%), AAPL (7.05%), MSFT (5.37%), AMZN (4.13%), GOOGL (3.25%).
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 | VOO |
|---|---|---|
| 2022 | -15.2% | -18.2% |
| 2023 | +18.0% | +26.3% |
| 2024 | +3.3% | +25.0% |
| 2025 | +32.1% | +17.8% |
| 2026 | +14.5% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEFA and VOO good diversifiers for each other?
Somewhat, no more. With 0.75 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IEFA and VOO?
As of 2026-08-27, the correlation of weekly returns between IEFA and VOO is 0.75 over 3 years, 0.74 over 1 year and 0.79 over 5 years.
Is VOO a good diversifier for IEFA?
Somewhat, no more. With 0.75 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do IEFA and VOO overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 1.2% by weight over 30 common positions.
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