ACWI vs VYM: Correlation & Overlap
iShares MSCI ACWI ETF (ACWI) and Vanguard High Dividend Yield ETF (VYM) show a very strong relationship: their 3-year correlation of weekly returns is 0.83. Looking through to holdings, 22.8% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and VYM?
Across a 3-year window, the weekly returns of ACWI and VYM correlate at 0.83, very strong, meaning they move nearly in lockstep. The link has loosened recently: the 1-year correlation (0.72) runs below the 3-year figure (0.83). Stretching to 5 years gives 0.85, with an annualized covariance of 140.3 %².
Among the 119 assets we track against ACWI, VYM ranks #33 by 3-year correlation. Twelve-month performance is nearly a tie, at +22.7% for ACWI and +21.1% for VYM. Stability stands out here, with the rolling one-year correlation confined to 0.71 through 0.93.
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 VYM: side by side
| ACWI (iShares MSCI ACWI ETF) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +22.7% | +21.1% |
| 5-year return | +69.0% | +76.6% |
| Volatility (ann.) | 13.8% | 12.3% |
| Beta vs S&P 500 | 0.92 | 0.69 |
| Max drawdown (3Y) | -16.5% | -14.5% |
| Dividend yield | 1.44% | 2.24% |
| Expense ratio | 0.32% | 0.04% |
| Assets under management | $32.5B | $99.2B |
| Sector / category | ETF · Global | ETF · Dividend |
ACWI is a Global Large-Stock Blend fund from iShares: $32.5B under management, 1590 holdings, a 0.32% expense ratio, a 1.44% trailing dividend yield. VYM, Vanguard's Large Value fund, carries $99.2B under management, 604 holdings, a 0.04% expense ratio, a 2.24% trailing dividend yield.
Portfolio overlap between ACWI and VYM
The two portfolios partially overlap: 22.8% of the funds' weight sits in the same underlying holdings (261 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in ACWI | Weight in VYM |
|---|---|---|
| AVGO | 1.53% | 7.37% |
| JPM | 0.92% | 3.83% |
| XOM | 0.63% | 2.63% |
| JNJ | 0.62% | 2.51% |
| ABBV | 0.45% | 1.81% |
| CSCO | 0.43% | 1.87% |
| BAC | 0.40% | 1.67% |
| MRK | 0.38% | 1.31% |
| CAT | 0.37% | 1.51% |
| CVX | 0.35% | 1.49% |
| UNH | 0.35% | 1.52% |
| KO | 0.34% | 1.39% |
| HD | 0.32% | 1.35% |
| PG | 0.32% | 1.37% |
| GS | 0.30% | 1.14% |
Largest positions held only by ACWI: NVDA (4.64%), AAPL (4.41%), MSFT (3.35%), AMZN (2.41%), GOOGL (1.91%). Only by VYM: LUV (0.08%), VTRS (0.08%), EWBC (0.07%), OVV (0.07%), PR (0.07%).
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 | VYM |
|---|---|---|
| 2022 | -18.4% | -0.4% |
| 2023 | +22.3% | +6.6% |
| 2024 | +17.4% | +17.6% |
| 2025 | +22.4% | +15.4% |
| 2026 | +14.9% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and VYM good diversifiers for each other?
No: a correlation of 0.83 means ACWI and VYM tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between ACWI and VYM?
As of 2026-08-27, the correlation of weekly returns between ACWI and VYM is 0.83 over 3 years, 0.72 over 1 year and 0.85 over 5 years.
Is VYM a good diversifier for ACWI?
No: a correlation of 0.83 means ACWI and VYM tend to fall together, which is precisely when diversification is supposed to help.
How much do ACWI and VYM overlap?
The two funds share 261 holdings amounting to 22.8% of weight, per issuer portfolio files dated 2026-08-26.
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