ETN vs VTI: Correlation
Measured on weekly returns over the past three years, Eaton Corporation (ETN) and Vanguard Total Stock Market ETF (VTI) carry a correlation of 0.64, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ETN and VTI?
On 3 years of weekly data the ETN/VTI correlation comes out at 0.64, strong. Lately the two have drifted apart, with the 1-year correlation at 0.43 versus 0.64 over 3 years. The 5-year figure is 0.63, and annualized covariance runs at 284.1 %².
By 3-year correlation, VTI places #18 of the 44 assets tracked against ETN. Their 12-month results are close: +19.7% for ETN against +20.7% for VTI. The rolling one-year correlation moved between 0.32 and 0.79 over the past three years, a moderate range. One caveat on sizing: ETN is 2.1 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.
ETN vs VTI: side by side
| ETN (Eaton Corporation) | VTI (Vanguard Total Stock Market ETF) | |
|---|---|---|
| 1-year return | +19.7% | +20.7% |
| 5-year return | +164.1% | +74.8% |
| Volatility (ann.) | 30.2% | 14.6% |
| Beta vs S&P 500 | 1.33 | 1.01 |
| Max drawdown (3Y) | -34.5% | -19.3% |
| Market cap | $161.6B | – |
| P/E (trailing) | 42.4 | – |
| Dividend yield | 1.02% | 1.06% |
| Expense ratio | – | 0.03% |
| Assets under management | – | $2,290.0B |
| Sector / category | Industrials | ETF · US Large Cap |
VTI, Vanguard's Large Blend fund, carries $2,290.0B under management, 3140 holdings, a 0.03% expense ratio, a 1.06% trailing dividend yield.
Year-by-year returns
| Year | ETN | VTI |
|---|---|---|
| 2022 | -7.2% | -19.5% |
| 2023 | +56.2% | +26.0% |
| 2024 | +39.5% | +23.8% |
| 2025 | -2.8% | +17.1% |
| 2026 | +31.7% | +14.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
ETN represents 0.22% of VTI's portfolio, so part of any move in VTI is ETN itself, and the correlation between them is partly mechanical.
Are ETN and VTI good diversifiers for each other?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ETN and VTI?
The ETN/VTI correlation stands at 0.64 on a 3-year window (1 year: 0.43, 5 years: 0.63), computed from weekly returns as of 2026-08-27.
Is VTI a good diversifier for ETN?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.64 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.
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Related comparisons
Hubs: ETN correlations · VTI correlations
