COST vs VIG: Correlation
How closely do Costco (COST) and Vanguard Dividend Appreciation ETF (VIG) trade together? Their weekly returns over three years give a correlation of 0.40, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are COST and VIG?
On 3 years of weekly data the COST/VIG correlation comes out at 0.40, moderate. The past 12 months show a weaker link (0.26) than the 3-year average (0.40). The 5-year figure is 0.58, and annualized covariance runs at 93.4 %².
Among the 33 assets we track against COST, VIG ranks #11 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months VIG outperformed by 18.1 percentage points (-1.0% for COST against +17.1% for VIG). The rolling one-year correlation moved between 0.24 and 0.69 over the past three years, a moderate range. One caveat on sizing: COST is 1.7 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
COST vs VIG: side by side
| COST (Costco) | VIG (Vanguard Dividend Appreciation ETF) | |
|---|---|---|
| 1-year return | -1.0% | +17.1% |
| 5-year return | +116.3% | +64.0% |
| Volatility (ann.) | 19.8% | 11.9% |
| Beta vs S&P 500 | 0.45 | 0.74 |
| Max drawdown (3Y) | -20.7% | -15.0% |
| Market cap | $414.5B | – |
| P/E (trailing) | 48.1 | – |
| Dividend yield | 0.56% | 1.50% |
| Expense ratio | – | 0.04% |
| Assets under management | – | $130.9B |
| Sector / category | Consumer Staples | ETF · Dividend |
VIG, Vanguard's Large Blend fund, carries $130.9B under management, 333 holdings, a 0.04% expense ratio, a 1.50% trailing dividend yield.
Year-by-year returns
| Year | COST | VIG |
|---|---|---|
| 2022 | -19.0% | -9.8% |
| 2023 | +49.0% | +14.5% |
| 2024 | +39.6% | +17.0% |
| 2025 | -5.4% | +14.2% |
| 2026 | +8.9% | +11.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 1.83% of VIG is COST itself, so the fund partly moves with the stock by construction.
Are COST and VIG good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between COST and VIG?
As of 2026-08-27, the correlation of weekly returns between COST and VIG is 0.40 over 3 years, 0.26 over 1 year and 0.58 over 5 years.
Is VIG a good diversifier for COST?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.40 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/cost-vs-vig.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cost-vs-vig/)
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Related comparisons
Hubs: COST correlations · VIG correlations
