VEA vs VT: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard FTSE Developed Markets ETF (VEA) and Vanguard Total World Stock ETF (VT) carry a correlation of 0.90, a very strong link. The two funds also share 29.3% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VEA and VT?
Over the past 3 years, VEA and VT moved with a correlation of 0.90, which is very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.91 lands near the 3-year figure. Over 5 years the correlation is 0.92, and the annualized covariance of weekly returns is 188.1 %².
VT is one of the assets that tracks VEA most closely: it ranks #3 out of the 107 assets we track against VEA. Over the last 12 months VEA came out ahead by 5.8 percentage points (+28.5% against +22.7%). The link looks structural: the rolling one-year correlation barely moved, holding between 0.84 and 0.96.
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 VT: side by side
| VEA (Vanguard FTSE Developed Markets ETF) | VT (Vanguard Total World Stock ETF) | |
|---|---|---|
| 1-year return | +28.5% | +22.7% |
| 5-year return | +63.5% | +67.7% |
| Volatility (ann.) | 15.1% | 13.9% |
| Beta vs S&P 500 | 0.79 | 0.92 |
| Max drawdown (3Y) | -13.5% | -16.5% |
| Dividend yield | 2.56% | 1.59% |
| Expense ratio | 0.03% | 0.06% |
| Assets under management | $314.9B | $97.9B |
| Sector / category | ETF · International | ETF · Global |
VEA, Vanguard's Foreign Large Blend fund, carries $314.9B under management, 3769 holdings, a 0.03% expense ratio, a 2.56% trailing dividend yield. VT is a Global Large-Stock Blend fund from Vanguard: $97.9B under management, 5308 holdings, a 0.06% expense ratio, a 1.59% trailing dividend yield.
Portfolio overlap between VEA and VT
The two portfolios partially overlap. Weighing the shared positions, 29.3% of the two funds is identical, spread across 2577 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in VEA | Weight in VT |
|---|---|---|
| 005930 | 2.53% | 0.72% |
| ASML | 2.00% | 0.57% |
| 000660 | 1.98% | 0.56% |
| HSBA | 1.15% | 0.33% |
| ROP | 0.97% | 0.28% |
| SAN | 0.94% | 0.27% |
| NOVN | 0.92% | 0.26% |
| RY | 0.92% | 0.26% |
| SU | 0.83% | 0.24% |
| SHEL | 0.81% | 0.23% |
| NESN | 0.81% | 0.23% |
| AZN | 0.80% | 0.23% |
| BA | 0.26% | 0.22% |
| 8306 | 0.77% | 0.22% |
| SIE | 0.76% | 0.22% |
Largest positions held only by VEA: SAGAB (0.01%), HFG (0.00%), CMCX (0.00%), JUP (0.00%), 2296 (0.00%). Only by VT: NVDA (4.20%), AAPL (4.00%), MSFT (3.09%), AMZN (2.36%), GOOGL (1.89%).
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 | VT |
|---|---|---|
| 2022 | -15.3% | -18.0% |
| 2023 | +17.9% | +22.0% |
| 2024 | +3.1% | +16.5% |
| 2025 | +35.2% | +22.4% |
| 2026 | +18.3% | +15.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VEA and VT good diversifiers for each other?
No: a correlation of 0.90 means VEA and VT tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between VEA and VT?
Using weekly returns as of 2026-08-27: 0.90 over 3 years, with 0.91 over the last year and 0.92 over 5 years.
Is VT a good diversifier for VEA?
No: a correlation of 0.90 means VEA and VT tend to fall together, which is precisely when diversification is supposed to help.
How much do VEA and VT overlap?
The two funds share 2577 holdings amounting to 29.3% of weight, per issuer portfolio files dated 2026-07-31.
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Related comparisons
Hubs: VEA correlations · VT correlations
