IEFA vs VTI: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Core MSCI EAFE ETF (IEFA) and Vanguard Total Stock Market ETF (VTI) carry a correlation of 0.76, a strong link. By holdings, the two funds overlap 1.5% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEFA and VTI?
Across a 3-year window, the weekly returns of IEFA and VTI correlate at 0.76, strong. Little has changed lately, as the 1-year reading of 0.76 lands near the 3-year figure. Stretching to 5 years gives 0.80, with an annualized covariance of 165.7 %².
By 3-year correlation, VTI places #23 of the 111 assets tracked against IEFA. Neither side won the trailing year by much: +21.8% against +20.7%. The rolling one-year correlation moved between 0.62 and 0.87 over the past three years, a moderate range.
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 VTI: side by side
| IEFA (iShares Core MSCI EAFE ETF) | VTI (Vanguard Total Stock Market ETF) | |
|---|---|---|
| 1-year return | +21.8% | +20.7% |
| 5-year return | +54.5% | +74.8% |
| Volatility (ann.) | 15.0% | 14.6% |
| Beta vs S&P 500 | 0.77 | 1.01 |
| Max drawdown (3Y) | -13.8% | -19.3% |
| Dividend yield | 3.35% | 1.06% |
| Expense ratio | 0.07% | 0.03% |
| Assets under management | $190.1B | $2,290.0B |
| Sector / category | ETF · International | ETF · US Large Cap |
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. VTI, Vanguard's Large Blend fund, carries $2,290.0B under management, 3140 holdings, a 0.03% expense ratio, a 1.06% trailing dividend yield.
Portfolio overlap between IEFA and VTI
The two portfolios are largely distinct. Weighing the shared positions, 1.5% of the two funds is identical, spread across 108 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in IEFA | Weight in VTI |
|---|---|---|
| BA | 0.31% | 0.24% |
| ALL | 0.09% | 0.09% |
| MRK | 0.08% | 0.45% |
| PRU | 0.17% | 0.06% |
| ROP | 1.22% | 0.06% |
| ADM | 0.05% | 0.05% |
| HBAN | 0.08% | 0.05% |
| EQT | 0.06% | 0.05% |
| SUNB | 0.11% | 0.04% |
| DG | 0.25% | 0.04% |
| DTE | 0.44% | 0.03% |
| HEIA | 0.09% | 0.03% |
| AMP | 0.03% | 0.07% |
| TEL | 0.03% | 0.08% |
| EL | 0.21% | 0.03% |
Largest positions held only by IEFA: ASML (2.57%), HSBA (1.35%), SAN (1.17%), NOVN (1.10%), NESN (0.97%). Only by VTI: NVDA (6.42%), AAPL (6.31%), MSFT (4.80%), AMZN (3.66%), GOOGL (2.91%).
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 | VTI |
|---|---|---|
| 2022 | -15.2% | -19.5% |
| 2023 | +18.0% | +26.0% |
| 2024 | +3.3% | +23.8% |
| 2025 | +32.1% | +17.1% |
| 2026 | +14.5% | +14.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEFA and VTI good diversifiers for each other?
Only partially. A correlation of 0.76 means IEFA and VTI 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 VTI?
As of 2026-08-27, the correlation of weekly returns between IEFA and VTI is 0.76 over 3 years, 0.76 over 1 year and 0.80 over 5 years.
Is VTI a good diversifier for IEFA?
Only partially. A correlation of 0.76 means IEFA and VTI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do IEFA and VTI overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 1.5% by weight over 108 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iefa-vs-vti.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iefa-vs-vti/)
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Related comparisons
Hubs: IEFA correlations · VTI correlations
