SWZ vs VEA: Correlation
Total Return Securities Fund (SWZ) and Vanguard FTSE Developed Markets ETF (VEA) show a strong relationship: their 3-year correlation of weekly returns is 0.60.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SWZ and VEA?
On 3 years of weekly data the SWZ/VEA correlation comes out at 0.60, strong. The relationship has been stable: the 1-year correlation (0.64) sits close to the 3-year figure. The 5-year figure is 0.75, and annualized covariance runs at 124.9 %².
Among the 14 assets we track against SWZ, VEA ranks #4 by 3-year correlation. The last year tells two different stories: VEA led by 29.7 percentage points, -1.2% for SWZ 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.
SWZ vs VEA: side by side
| SWZ (Total Return Securities Fund) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | -1.2% | +28.5% |
| 5-year return | +13.9% | +63.5% |
| Volatility (ann.) | 13.7% | 15.1% |
| Beta vs S&P 500 | 0.41 | 0.79 |
| Max drawdown (3Y) | -15.5% | -13.5% |
| Market cap | – | – |
| P/E (trailing) | 4.3 | – |
| Dividend yield | 2.45% | 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 | SWZ | VEA |
|---|---|---|
| 2022 | -17.7% | -15.3% |
| 2023 | +15.5% | +17.9% |
| 2024 | -2.5% | +3.1% |
| 2025 | +24.1% | +35.2% |
| 2026 | -3.5% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SWZ and VEA good diversifiers for each other?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SWZ and VEA?
As of 2026-08-27, the correlation of weekly returns between SWZ and VEA is 0.60 over 3 years, 0.64 over 1 year and 0.75 over 5 years.
Is VEA a good diversifier for SWZ?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.60 mean?
A reading of 0.60 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: SWZ correlations · VEA correlations
