IEFA vs VTV: Correlation & Overlap
iShares Core MSCI EAFE ETF (IEFA) and Vanguard Value ETF (VTV) show a strong relationship: their 3-year correlation of weekly returns is 0.76. 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 VTV?
Over the past 3 years, IEFA and VTV moved with a correlation of 0.76, which is strong. Little has changed lately, as the 1-year reading of 0.76 lands near the 3-year figure. Over 5 years the correlation is 0.77, and the annualized covariance of weekly returns is 134.6 %².
Among the 111 assets we track against IEFA, VTV ranks #24 by 3-year correlation. Their 12-month results are close: +21.8% for IEFA against +25.7% for VTV. The rolling one-year correlation moved between 0.60 and 0.86 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 VTV: side by side
| IEFA (iShares Core MSCI EAFE ETF) | VTV (Vanguard Value ETF) | |
|---|---|---|
| 1-year return | +21.8% | +25.7% |
| 5-year return | +54.5% | +79.1% |
| Volatility (ann.) | 15.0% | 11.9% |
| Beta vs S&P 500 | 0.77 | 0.65 |
| Max drawdown (3Y) | -13.8% | -14.5% |
| Dividend yield | 3.35% | 1.86% |
| Expense ratio | 0.07% | 0.03% |
| Assets under management | $190.1B | $256.4B |
| Sector / category | ETF · International | ETF · US Style |
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. On the fund side, VTV sits in the Large Value category at Vanguard, with $256.4B under management, 308 holdings, a 0.03% expense ratio, a 1.86% trailing dividend yield.
Portfolio overlap between IEFA and VTV
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 VTV |
|---|---|---|
| PRU | 0.17% | 0.16% |
| ROP | 1.22% | 0.15% |
| DG | 0.25% | 0.10% |
| DTE | 0.44% | 0.09% |
| ALL | 0.09% | 0.25% |
| MRK | 0.08% | 1.20% |
| HBAN | 0.08% | 0.13% |
| EL | 0.21% | 0.08% |
| SUNB | 0.11% | 0.06% |
| ADM | 0.05% | 0.14% |
| RKT | 0.17% | 0.04% |
| EQT | 0.06% | 0.03% |
| TSCO | 0.15% | 0.03% |
| TEL | 0.03% | 0.22% |
| AMP | 0.03% | 0.18% |
Largest positions held only by IEFA: ASML (2.57%), HSBA (1.35%), SAN (1.17%), NOVN (1.10%), NESN (0.97%). Only by VTV: JPM (3.51%), MU (3.46%), BRK.B (2.99%), XOM (2.40%), JNJ (2.30%).
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 | VTV |
|---|---|---|
| 2022 | -15.2% | -2.1% |
| 2023 | +18.0% | +9.3% |
| 2024 | +3.3% | +16.0% |
| 2025 | +32.1% | +15.3% |
| 2026 | +14.5% | +19.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEFA and VTV good diversifiers for each other?
To a limited degree. At 0.76 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 IEFA and VTV?
The IEFA/VTV correlation stands at 0.76 on a 3-year window (1 year: 0.76, 5 years: 0.77), computed from weekly returns as of 2026-08-27.
Is VTV a good diversifier for IEFA?
To a limited degree. At 0.76 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do IEFA and VTV overlap?
1.2% by weight, across 24 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iefa-vs-vtv.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iefa-vs-vtv/)
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Related comparisons
Hubs: IEFA correlations · VTV correlations
