VEA vs VIG: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard FTSE Developed Markets ETF (VEA) and Vanguard Dividend Appreciation ETF (VIG) carry a correlation of 0.76, a strong link. By holdings, the two funds overlap 1.1% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VEA and VIG?
Over the past 3 years, VEA and VIG moved with a correlation of 0.76, which is strong. Recent behaviour matches the longer record: 0.74 over 1 year against 0.76 over 3. Over 5 years the correlation is 0.79, and the annualized covariance of weekly returns is 136.2 %².
Among the 107 assets we track against VEA, VIG ranks #24 by 3-year correlation. On 12-month performance VEA holds a 11.4-point edge, +28.5% against +17.1%. The link looks structural: the rolling one-year correlation barely moved, holding between 0.65 and 0.89.
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.
VEA vs VIG: side by side
| VEA (Vanguard FTSE Developed Markets ETF) | VIG (Vanguard Dividend Appreciation ETF) | |
|---|---|---|
| 1-year return | +28.5% | +17.1% |
| 5-year return | +63.5% | +64.0% |
| Volatility (ann.) | 15.1% | 11.9% |
| Beta vs S&P 500 | 0.79 | 0.74 |
| Max drawdown (3Y) | -13.5% | -15.0% |
| Dividend yield | 2.56% | 1.50% |
| Expense ratio | 0.03% | 0.04% |
| Assets under management | $314.9B | $130.9B |
| Sector / category | ETF · International | ETF · Dividend |
On the fund side, VEA sits in the Foreign Large Blend category at Vanguard, with $314.9B under management, 3769 holdings, a 0.03% expense ratio, a 2.56% trailing dividend yield. VIG, Vanguard's Large Blend fund, carries $130.9B under management, 333 holdings, a 0.04% expense ratio, a 1.50% trailing dividend yield.
Portfolio overlap between VEA and VIG
The two portfolios are largely distinct, with 34 holdings in common adding up to 1.1% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in VEA | Weight in VIG |
|---|---|---|
| ROP | 0.97% | 0.17% |
| DTE | 0.33% | 0.13% |
| SUNB | 0.09% | 0.13% |
| ALL | 0.08% | 0.29% |
| HEIA | 0.08% | 0.09% |
| TSCO | 0.13% | 0.07% |
| MRK | 0.07% | 1.40% |
| RBA | 0.06% | 0.09% |
| CSL | 0.13% | 0.06% |
| HEI | 0.07% | 0.06% |
| CFR | 0.40% | 0.05% |
| ADM | 0.04% | 0.17% |
| TEL | 0.03% | 0.26% |
| ORI | 0.02% | 0.04% |
| UCB | 0.10% | 0.02% |
Largest positions held only by VEA: 005930 (2.53%), ASML (2.00%), 000660 (1.98%), HSBA (1.15%), SAN (0.94%). Only by VIG: AVGO (4.65%), AAPL (4.47%), MSFT (4.35%), JPM (4.09%), LLY (3.94%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-07-31. Top 15 common positions shown.
Year-by-year returns
| Year | VEA | VIG |
|---|---|---|
| 2022 | -15.3% | -9.8% |
| 2023 | +17.9% | +14.5% |
| 2024 | +3.1% | +17.0% |
| 2025 | +35.2% | +14.2% |
| 2026 | +18.3% | +11.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VEA and VIG 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 VEA and VIG?
The VEA/VIG correlation stands at 0.76 on a 3-year window (1 year: 0.74, 5 years: 0.79), computed from weekly returns as of 2026-08-27.
Is VIG a good diversifier for VEA?
Somewhat, no more. With 0.76 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do VEA and VIG overlap?
1.1% by weight, across 34 common holdings, based on issuer-disclosed portfolios as of 2026-07-31.
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Hubs: VEA correlations · VIG correlations
