IEFA vs VUG: Correlation & Overlap
iShares Core MSCI EAFE ETF (IEFA) and Vanguard Growth ETF (VUG) show a strong relationship: their 3-year correlation of weekly returns is 0.63. The two funds also share 0.5% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEFA and VUG?
On 3 years of weekly data the IEFA/VUG correlation comes out at 0.63, strong. The relationship has been stable: the 1-year correlation (0.56) sits close to the 3-year figure. The 5-year figure is 0.71, and annualized covariance runs at 183.4 %².
Among the 111 assets we track against IEFA, VUG ranks #56 by 3-year correlation. On 12-month performance IEFA holds a 5.6-point edge, +21.8% against +16.2%. On a rolling one-year basis the correlation drifted between 0.51 and 0.76, 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 VUG: side by side
| IEFA (iShares Core MSCI EAFE ETF) | VUG (Vanguard Growth ETF) | |
|---|---|---|
| 1-year return | +21.8% | +16.2% |
| 5-year return | +54.5% | +78.4% |
| Volatility (ann.) | 15.0% | 19.4% |
| Beta vs S&P 500 | 0.77 | 1.28 |
| Max drawdown (3Y) | -13.8% | -22.8% |
| Dividend yield | 3.35% | 0.40% |
| Expense ratio | 0.07% | 0.03% |
| Assets under management | $190.1B | $372.0B |
| 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. VUG, Vanguard's Large Growth fund, carries $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% trailing dividend yield.
Portfolio overlap between IEFA and VUG
The two portfolios are largely distinct. Weighing the shared positions, 0.5% of the two funds is identical, spread across 6 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in IEFA | Weight in VUG |
|---|---|---|
| BA | 0.31% | 0.49% |
| HEIA | 0.09% | 0.07% |
| SUNB | 0.11% | 0.06% |
| HEI | 0.10% | 0.05% |
| EQT | 0.06% | 0.04% |
| TW | 0.02% | 0.05% |
Largest positions held only by IEFA: ASML (2.57%), HSBA (1.35%), ROP (1.22%), SAN (1.17%), NOVN (1.10%). Only by VUG: NVDA (12.84%), AAPL (12.63%), MSFT (9.61%), GOOGL (5.81%), AMZN (5.16%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 6 common positions shown.
Year-by-year returns
| Year | IEFA | VUG |
|---|---|---|
| 2022 | -15.2% | -33.2% |
| 2023 | +18.0% | +46.8% |
| 2024 | +3.3% | +32.7% |
| 2025 | +32.1% | +19.4% |
| 2026 | +14.5% | +9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEFA and VUG good diversifiers for each other?
To a limited degree. At 0.63 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 VUG?
Using weekly returns as of 2026-08-27: 0.63 over 3 years, with 0.56 over the last year and 0.71 over 5 years.
Is VUG a good diversifier for IEFA?
To a limited degree. At 0.63 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 VUG overlap?
0.5% by weight, across 6 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-vug.json
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[](https://www.pairbook.io/pair/iefa-vs-vug/)
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Related comparisons
Hubs: IEFA correlations · VUG correlations
