USMV vs VEA: Correlation & Overlap
How closely do iShares MSCI USA Min Vol Factor ETF (USMV) and Vanguard FTSE Developed Markets ETF (VEA) trade together? Their weekly returns over three years give a correlation of 0.65, which is strong. The two funds also share 1.5% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are USMV and VEA?
On 3 years of weekly data the USMV/VEA correlation comes out at 0.65, strong. The past 12 months show a weaker link (0.48) than the 3-year average (0.65). The 5-year figure is 0.69, and annualized covariance runs at 97.9 %².
Within USMV's tracked universe of 125 assets, VEA comes in at #30 by 3-year correlation. The last year tells two different stories: VEA led by 18.4 percentage points, +10.1% for USMV against +28.5% for VEA. Across three years, the rolling one-year figure varied moderately, from 0.49 to 0.83. One caveat on sizing: VEA is 1.5 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.
USMV vs VEA: side by side
| USMV (iShares MSCI USA Min Vol Factor ETF) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | +10.1% | +28.5% |
| 5-year return | +42.3% | +63.5% |
| Volatility (ann.) | 9.9% | 15.1% |
| Beta vs S&P 500 | 0.51 | 0.79 |
| Max drawdown (3Y) | -9.4% | -13.5% |
| Dividend yield | 1.48% | 2.56% |
| Expense ratio | 0.15% | 0.03% |
| Assets under management | $23.6B | $314.9B |
| Sector / category | ETF · US Style | ETF · International |
USMV is a Large Blend fund from iShares: $23.6B under management, 164 holdings, a 0.15% expense ratio, a 1.48% 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 USMV and VEA
The two portfolios are largely distinct, with 18 holdings in common adding up to 1.5% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in USMV | Weight in VEA |
|---|---|---|
| ROP | 1.02% | 0.97% |
| WCN | 1.22% | 0.13% |
| L | 0.35% | 0.08% |
| ALL | 0.57% | 0.08% |
| MRK | 1.54% | 0.07% |
| PPL | 0.05% | 0.09% |
| TEL | 0.53% | 0.03% |
| ADP | 0.08% | 0.02% |
| T | 0.92% | 0.02% |
| NEM | 1.65% | 0.01% |
| TW | 0.14% | 0.01% |
| RSG | 1.26% | 0.00% |
| GEN | 0.28% | 0.00% |
| ELV | 0.30% | 0.00% |
| COR | 1.28% | 0.00% |
Largest positions held only by USMV: MSFT (1.68%), VRTX (1.63%), JNJ (1.58%), WELL (1.57%), APH (1.54%). 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 | USMV | VEA |
|---|---|---|
| 2022 | -9.4% | -15.3% |
| 2023 | +10.3% | +17.9% |
| 2024 | +15.7% | +3.1% |
| 2025 | +7.6% | +35.2% |
| 2026 | +9.1% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are USMV and VEA good diversifiers for each other?
To a limited degree. At 0.65 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between USMV and VEA?
As of 2026-08-27, the correlation of weekly returns between USMV and VEA is 0.65 over 3 years, 0.48 over 1 year and 0.69 over 5 years.
Is VEA a good diversifier for USMV?
To a limited degree. At 0.65 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do USMV and VEA overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 1.5% by weight over 18 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/usmv-vs-vea.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/usmv-vs-vea/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: USMV correlations · VEA correlations
