MTUM vs VEA: Correlation & Overlap
How closely do iShares MSCI USA Momentum Factor ETF (MTUM) and Vanguard FTSE Developed Markets ETF (VEA) trade together? Their weekly returns over three years give a correlation of 0.68, which is strong. By holdings, the two funds overlap 0.2% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MTUM and VEA?
Across a 3-year window, the weekly returns of MTUM and VEA correlate at 0.68, strong. Recent behaviour matches the longer record: 0.71 over 1 year against 0.68 over 3. Stretching to 5 years gives 0.70, with an annualized covariance of 210.5 %².
Within MTUM's tracked universe of 109 assets, VEA comes in at #37 by 3-year correlation. Twelve-month performance is nearly a tie, at +25.2% for MTUM and +28.5% for VEA. The link looks structural: the rolling one-year correlation barely moved, holding between 0.56 and 0.76.
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.
MTUM vs VEA: side by side
| MTUM (iShares MSCI USA Momentum Factor ETF) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | +25.2% | +28.5% |
| 5-year return | +76.1% | +63.5% |
| Volatility (ann.) | 20.6% | 15.1% |
| Beta vs S&P 500 | 1.25 | 0.79 |
| Max drawdown (3Y) | -21.0% | -13.5% |
| Dividend yield | 0.62% | 2.56% |
| Expense ratio | 0.15% | 0.03% |
| Assets under management | $25.3B | $314.9B |
| Sector / category | ETF · US Style | ETF · International |
MTUM is a Large Blend fund from iShares: $25.3B under management, 126 holdings, a 0.15% expense ratio, a 0.62% 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 MTUM and VEA
The two portfolios are largely distinct. Weighing the shared positions, 0.2% of the two funds is identical, spread across 9 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in MTUM | Weight in VEA |
|---|---|---|
| BG | 0.08% | 0.05% |
| SN | 0.07% | 0.04% |
| ADM | 0.17% | 0.04% |
| NEM | 0.76% | 0.01% |
| DOW | 0.13% | 0.01% |
| HAL | 0.19% | 0.01% |
| WBD | 0.34% | 0.00% |
| CAT | 3.63% | 0.00% |
| STX | 2.16% | 0.00% |
Largest positions held only by MTUM: MU (6.60%), AMD (5.09%), AVGO (4.25%), INTC (3.91%), XOM (3.78%). 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 9 common positions shown.
Year-by-year returns
| Year | MTUM | VEA |
|---|---|---|
| 2022 | -18.3% | -15.3% |
| 2023 | +9.1% | +17.9% |
| 2024 | +32.9% | +3.1% |
| 2025 | +22.1% | +35.2% |
| 2026 | +21.8% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MTUM and VEA good diversifiers for each other?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between MTUM and VEA?
The MTUM/VEA correlation stands at 0.68 on a 3-year window (1 year: 0.71, 5 years: 0.70), computed from weekly returns as of 2026-08-27.
Is VEA a good diversifier for MTUM?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do MTUM and VEA overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0.2% by weight over 9 common positions.
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Hubs: MTUM correlations · VEA correlations
