JOF vs VEA: Correlation
How closely do Japan Smaller Capitalization Fund Inc (JOF) and Vanguard FTSE Developed Markets ETF (VEA) trade together? Their weekly returns over three years give a correlation of 0.80, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are JOF and VEA?
Across a 3-year window, the weekly returns of JOF and VEA correlate at 0.80, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.79 over 1 year against 0.80 over 3. Stretching to 5 years gives 0.74, with an annualized covariance of 223.8 %².
Few assets follow JOF as closely as VEA, which ranks #2 of 15 tracked partners. Their 12-month results are close: +33.0% for JOF against +28.5% for VEA.
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.
JOF vs VEA: side by side
| JOF (Japan Smaller Capitalization Fund Inc) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | +33.0% | +28.5% |
| 5-year return | +81.0% | +63.5% |
| Volatility (ann.) | 18.6% | 15.1% |
| Beta vs S&P 500 | 0.74 | 0.79 |
| Max drawdown (3Y) | -17.2% | -13.5% |
| Market cap | – | – |
| P/E (trailing) | 2.5 | – |
| Dividend yield | 5.67% | 2.56% |
| Expense ratio | – | 0.03% |
| Assets under management | – | $314.9B |
| Sector / category | US Listed | ETF · International |
VEA is a Foreign Large Blend fund from Vanguard: $314.9B under management, 3769 holdings, a 0.03% expense ratio, a 2.56% trailing dividend yield.
Year-by-year returns
| Year | JOF | VEA |
|---|---|---|
| 2022 | -17.1% | -15.3% |
| 2023 | +21.4% | +17.9% |
| 2024 | +5.3% | +3.1% |
| 2025 | +52.1% | +35.2% |
| 2026 | +20.9% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are JOF and VEA good diversifiers for each other?
Not really. At 0.80, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between JOF and VEA?
The JOF/VEA correlation stands at 0.80 on a 3-year window (1 year: 0.79, 5 years: 0.74), computed from weekly returns as of 2026-08-27.
Is VEA a good diversifier for JOF?
Not really. At 0.80, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.80 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: JOF correlations · VEA correlations
