ACWI vs VWO: Correlation & Overlap
iShares MSCI ACWI ETF (ACWI) and Vanguard FTSE Emerging Markets ETF (VWO) show a very strong relationship: their 3-year correlation of weekly returns is 0.82. The two funds also share 7.5% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and VWO?
Across a 3-year window, the weekly returns of ACWI and VWO correlate at 0.82, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.91 over 1 year against 0.82 over 3. Stretching to 5 years gives 0.78, with an annualized covariance of 172.4 %².
Within ACWI's tracked universe of 119 assets, VWO comes in at #38 by 3-year correlation. Twelve-month performance is nearly a tie, at +22.7% for ACWI and +21.6% for VWO. The rolling one-year correlation stayed in a tight band between 0.68 and 0.92 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.
ACWI vs VWO: side by side
| ACWI (iShares MSCI ACWI ETF) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +22.7% | +21.6% |
| 5-year return | +69.0% | +38.2% |
| Volatility (ann.) | 13.8% | 15.2% |
| Beta vs S&P 500 | 0.92 | 0.75 |
| Max drawdown (3Y) | -16.5% | -17.4% |
| Dividend yield | 1.44% | 2.36% |
| Expense ratio | 0.32% | 0.06% |
| Assets under management | $32.5B | $162.0B |
| Sector / category | ETF · Global | ETF · International |
ACWI, iShares's Global Large-Stock Blend fund, carries $32.5B under management, 1590 holdings, a 0.32% expense ratio, a 1.44% trailing dividend yield. On the fund side, VWO sits in the Diversified Emerging Mkts category at Vanguard, with $162.0B under management, 4113 holdings, a 0.06% expense ratio, a 2.36% trailing dividend yield.
Portfolio overlap between ACWI and VWO
The two portfolios are largely distinct: 7.5% of the funds' weight sits in the same underlying holdings (295 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in ACWI | Weight in VWO |
|---|---|---|
| 2330 | 1.79% | 18.65% |
| 700 | 0.33% | 3.97% |
| 9988 | 0.24% | 2.90% |
| 2454 | 0.17% | 1.62% |
| 2308 | 0.10% | 0.99% |
| 939 | 0.09% | 1.07% |
| 2317 | 0.09% | 0.97% |
| 1211 | 0.07% | 0.68% |
| 1398 | 0.06% | 0.80% |
| 1810 | 0.06% | 0.66% |
| ANG | 0.06% | 0.40% |
| 3711 | 0.06% | 0.59% |
| 1120 | 0.05% | 0.51% |
| 3988 | 0.05% | 0.49% |
| VALE3 | 0.05% | 0.55% |
Largest positions held only by ACWI: NVDA (4.64%), AAPL (4.41%), MSFT (3.35%), AMZN (2.41%), GOOGL (1.91%). Only by VWO: PTT-F (0.15%), 2408 (0.13%), 2344 (0.12%), 1519 (0.11%), AC* (0.11%).
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 | ACWI | VWO |
|---|---|---|
| 2022 | -18.4% | -18.0% |
| 2023 | +22.3% | +9.3% |
| 2024 | +17.4% | +10.6% |
| 2025 | +22.4% | +25.6% |
| 2026 | +14.9% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and VWO good diversifiers for each other?
No. With a correlation of 0.82, ACWI and VWO move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between ACWI and VWO?
As of 2026-08-27, the correlation of weekly returns between ACWI and VWO is 0.82 over 3 years, 0.91 over 1 year and 0.78 over 5 years.
Is VWO a good diversifier for ACWI?
No. With a correlation of 0.82, ACWI and VWO move nearly in lockstep, so holding both adds very little diversification.
How much do ACWI and VWO overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 7.5% by weight over 295 common positions.
Use this data
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Hubs: ACWI correlations · VWO correlations
