MDY vs VEA: Correlation & Overlap
How closely do SPDR S&P MidCap 400 ETF (MDY) and Vanguard FTSE Developed Markets ETF (VEA) trade together? Their weekly returns over three years give a correlation of 0.74, which is strong. The two funds also share 1.6% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MDY and VEA?
On 3 years of weekly data the MDY/VEA correlation comes out at 0.74, strong. The relationship has been stable: the 1-year correlation (0.76) sits close to the 3-year figure. The 5-year figure is 0.80, and annualized covariance runs at 185.4 %².
Within MDY's tracked universe of 359 assets, VEA comes in at #40 by 3-year correlation. Over the last 12 months VEA came out ahead by 10.2 percentage points (+18.3% against +28.5%). Stability stands out here, with the rolling one-year correlation confined to 0.63 through 0.87.
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.
MDY vs VEA: side by side
| MDY (SPDR S&P MidCap 400 ETF) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | +18.3% | +28.5% |
| 5-year return | +47.5% | +63.5% |
| Volatility (ann.) | 16.5% | 15.1% |
| Beta vs S&P 500 | 0.91 | 0.79 |
| Max drawdown (3Y) | -24.0% | -13.5% |
| Dividend yield | 1.02% | 2.56% |
| Expense ratio | 0.23% | 0.03% |
| Assets under management | $26.5B | $314.9B |
| Sector / category | ETF · US Small & Mid Cap | ETF · International |
MDY is a Mid-Cap Blend fund from State Street Investment Management: $26.5B under management, 400 holdings, a 0.23% expense ratio, a 1.02% trailing dividend yield. 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.
Portfolio overlap between MDY and VEA
The two portfolios are largely distinct: 1.6% of the funds' weight sits in the same underlying holdings (38 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in MDY | Weight in VEA |
|---|---|---|
| CFR | 0.28% | 0.40% |
| ALV | 0.23% | 0.60% |
| AAL | 0.25% | 0.18% |
| G | 0.16% | 0.15% |
| CSL | 0.40% | 0.13% |
| ORA | 0.17% | 0.13% |
| NXT | 0.36% | 0.10% |
| RBA | 0.44% | 0.06% |
| SN | 0.37% | 0.04% |
| H | 0.20% | 0.04% |
| ORI | 0.26% | 0.02% |
| CAR | 0.07% | 0.02% |
| AM | 0.21% | 0.02% |
| PSN | 0.07% | 0.01% |
| FR | 0.23% | 0.01% |
Largest positions held only by MDY: TWLO (0.95%), P (0.94%), ILMN (0.93%), FTI (0.83%), ATI (0.80%). Only by VEA: 005930 (2.53%), ASML (2.00%), 000660 (1.98%), HSBA (1.15%), ROP (0.97%).
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 | MDY | VEA |
|---|---|---|
| 2022 | -13.3% | -15.3% |
| 2023 | +16.1% | +17.9% |
| 2024 | +13.6% | +3.1% |
| 2025 | +7.2% | +35.2% |
| 2026 | +16.4% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MDY and VEA good diversifiers for each other?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between MDY and VEA?
Using weekly returns as of 2026-08-27: 0.74 over 3 years, with 0.76 over the last year and 0.80 over 5 years.
Is VEA a good diversifier for MDY?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do MDY and VEA overlap?
The two funds share 38 holdings amounting to 1.6% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mdy-vs-vea.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mdy-vs-vea/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MDY correlations · VEA correlations
