VEA vs VUG: Correlation & Overlap
How closely do Vanguard FTSE Developed Markets ETF (VEA) and Vanguard Growth ETF (VUG) trade together? Their weekly returns over three years give a correlation of 0.64, which is strong. The two funds also share 0.6% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VEA and VUG?
Over the past 3 years, VEA and VUG moved with a correlation of 0.64, which is strong. Recent behaviour matches the longer record: 0.58 over 1 year against 0.64 over 3. Over 5 years the correlation is 0.71, and the annualized covariance of weekly returns is 188.0 %².
By 3-year correlation, VUG places #51 of the 107 assets tracked against VEA. On 12-month performance VEA holds a 12.3-point edge, +28.5% against +16.2%. The rolling one-year correlation stayed in a tight band between 0.54 and 0.77 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.
VEA vs VUG: side by side
| VEA (Vanguard FTSE Developed Markets ETF) | VUG (Vanguard Growth ETF) | |
|---|---|---|
| 1-year return | +28.5% | +16.2% |
| 5-year return | +63.5% | +78.4% |
| Volatility (ann.) | 15.1% | 19.4% |
| Beta vs S&P 500 | 0.79 | 1.28 |
| Max drawdown (3Y) | -13.5% | -22.8% |
| Dividend yield | 2.56% | 0.40% |
| Expense ratio | 0.03% | 0.03% |
| Assets under management | $314.9B | $372.0B |
| Sector / category | ETF · International | ETF · US Style |
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. VUG, Vanguard's Large Growth fund, carries $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% trailing dividend yield.
Portfolio overlap between VEA and VUG
The two portfolios are largely distinct: 0.6% of the funds' weight sits in the same underlying holdings (9 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in VEA | Weight in VUG |
|---|---|---|
| BA | 0.26% | 0.49% |
| WCN | 0.13% | 0.14% |
| HEIA | 0.08% | 0.07% |
| SUNB | 0.09% | 0.06% |
| HEI | 0.07% | 0.05% |
| EQT | 0.06% | 0.04% |
| TW | 0.01% | 0.05% |
| TKO | 0.01% | 0.03% |
| STX | 0.00% | 0.55% |
Largest positions held only by VEA: 005930 (2.53%), ASML (2.00%), 000660 (1.98%), HSBA (1.15%), ROP (0.97%). Only by VUG: NVDA (12.84%), AAPL (12.63%), MSFT (9.61%), GOOGL (5.81%), AMZN (5.16%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-07-31. Top 9 common positions shown.
Year-by-year returns
| Year | VEA | VUG |
|---|---|---|
| 2022 | -15.3% | -33.2% |
| 2023 | +17.9% | +46.8% |
| 2024 | +3.1% | +32.7% |
| 2025 | +35.2% | +19.4% |
| 2026 | +18.3% | +9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VEA and VUG good diversifiers for each other?
To a limited degree. At 0.64 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 VEA and VUG?
The VEA/VUG correlation stands at 0.64 on a 3-year window (1 year: 0.58, 5 years: 0.71), computed from weekly returns as of 2026-08-27.
Is VUG a good diversifier for VEA?
To a limited degree. At 0.64 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 VEA and VUG overlap?
Per the issuers' own portfolio disclosures (2026-07-31), the overlap is 0.6% by weight over 9 common positions.
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