SPY vs VEA: Correlation & Overlap
Measured on weekly returns over the past three years, SPDR S&P 500 ETF Trust (SPY) and Vanguard FTSE Developed Markets ETF (VEA) carry a correlation of 0.76, a strong link. By holdings, the two funds overlap 1.2% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and VEA?
Across a 3-year window, the weekly returns of SPY and VEA correlate at 0.76, strong. The relationship has been stable: the 1-year correlation (0.75) sits close to the 3-year figure. Stretching to 5 years gives 0.80, with an annualized covariance of 165.7 %².
Within SPY's tracked universe of 4755 assets, VEA comes in at #65 by 3-year correlation. The trailing year gives VEA the advantage: +20.6% versus +28.5%, a 7.9-point spread. The rolling one-year correlation stayed in a tight band between 0.66 and 0.88 over the past three years, which points to a structural rather than episodic relationship.
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.
SPY vs VEA: side by side
| SPY (SPDR S&P 500 ETF Trust) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | +20.6% | +28.5% |
| 5-year return | +82.4% | +63.5% |
| Volatility (ann.) | 14.5% | 15.1% |
| Beta vs S&P 500 | 1.00 | 0.79 |
| Max drawdown (3Y) | -18.8% | -13.5% |
| Dividend yield | 1.01% | 2.56% |
| Expense ratio | 0.09% | 0.03% |
| Assets under management | $795.3B | $314.9B |
| Sector / category | ETF · US Large Cap | ETF · International |
On the fund side, SPY sits in the Large Blend category at State Street Investment Management, with $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% 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 SPY and VEA
The two portfolios are largely distinct. Weighing the shared positions, 1.2% of the two funds is identical, spread across 55 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in SPY | Weight in VEA |
|---|---|---|
| BA | 0.25% | 0.26% |
| ALL | 0.10% | 0.08% |
| MRK | 0.57% | 0.07% |
| PRU | 0.06% | 0.13% |
| ROP | 0.06% | 0.97% |
| HBAN | 0.05% | 0.06% |
| EQT | 0.05% | 0.06% |
| DTE | 0.04% | 0.33% |
| DG | 0.04% | 0.22% |
| ADM | 0.06% | 0.04% |
| PPL | 0.04% | 0.09% |
| EL | 0.04% | 0.17% |
| KEY | 0.03% | 0.03% |
| L | 0.03% | 0.08% |
| TEL | 0.09% | 0.03% |
Largest positions held only by SPY: NVDA (7.68%), AAPL (6.96%), MSFT (5.58%), AMZN (3.85%), GOOGL (3.03%). Only by VEA: 005930 (2.53%), ASML (2.00%), 000660 (1.98%), HSBA (1.15%), SAN (0.94%).
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 | SPY | VEA |
|---|---|---|
| 2022 | -18.2% | -15.3% |
| 2023 | +26.2% | +17.9% |
| 2024 | +24.9% | +3.1% |
| 2025 | +17.7% | +35.2% |
| 2026 | +13.7% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and VEA good diversifiers for each other?
Somewhat, no more. With 0.76 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SPY and VEA?
The SPY/VEA correlation stands at 0.76 on a 3-year window (1 year: 0.75, 5 years: 0.80), computed from weekly returns as of 2026-08-27.
Is VEA a good diversifier for SPY?
Somewhat, no more. With 0.76 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do SPY and VEA overlap?
The two funds share 55 holdings amounting to 1.2% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/spy-vs-vea.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/spy-vs-vea/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SPY correlations · VEA correlations
