RIO vs VEA: Correlation
Measured on weekly returns over the past three years, Rio Tinto Plc (RIO) and Vanguard FTSE Developed Markets ETF (VEA) carry a correlation of 0.65, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RIO and VEA?
On 3 years of weekly data the RIO/VEA correlation comes out at 0.65, strong. The relationship has been stable: the 1-year correlation (0.62) sits close to the 3-year figure. The 5-year figure is 0.62, and annualized covariance runs at 245.4 %².
By 3-year correlation, VEA places #5 of the 19 assets tracked against RIO. Correlation aside, the last 12 months split them widely, with RIO ahead by 48.7 points (+77.2% versus +28.5%). One caveat on sizing: RIO is 1.7 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
RIO vs VEA: side by side
| RIO (Rio Tinto Plc) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | +77.2% | +28.5% |
| 5-year return | +94.8% | +63.5% |
| Volatility (ann.) | 25.1% | 15.1% |
| Beta vs S&P 500 | 0.70 | 0.79 |
| Max drawdown (3Y) | -24.2% | -13.5% |
| Market cap | $170.4B | – |
| P/E (trailing) | 14.2 | – |
| Dividend yield | 4.44% | 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 | RIO | VEA |
|---|---|---|
| 2022 | +18.5% | -15.3% |
| 2023 | +11.1% | +17.9% |
| 2024 | -15.4% | +3.1% |
| 2025 | +44.5% | +35.2% |
| 2026 | +37.5% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that VEA holds RIO at a 0.46% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are RIO and VEA good diversifiers for each other?
Somewhat, no more. With 0.65 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between RIO and VEA?
Using weekly returns as of 2026-08-27: 0.65 over 3 years, with 0.62 over the last year and 0.62 over 5 years.
Is VEA a good diversifier for RIO?
Somewhat, no more. With 0.65 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.65 mean?
On the −1 to +1 scale, 0.65 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/rio-vs-vea.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/rio-vs-vea/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: RIO correlations · VEA correlations
