HOOD vs VUG: Correlation
Robinhood Markets (HOOD) and Vanguard Growth ETF (VUG) show a strong relationship: their 3-year correlation of weekly returns is 0.60.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HOOD and VUG?
Over the past 3 years, HOOD and VUG moved with a correlation of 0.60, which is strong. Recent behaviour matches the longer record: 0.65 over 1 year against 0.60 over 3. Over 5 years the correlation is 0.55, and the annualized covariance of weekly returns is 832.7 %².
Among the 39 assets we track against HOOD, VUG ranks #6 by 3-year correlation. The trailing year gives VUG the advantage: +6.6% versus +16.2%, a 9.6-point spread. The relationship is regime-dependent: the rolling one-year correlation swung between 0.25 and 0.78 over the past three years, so this pair behaves very differently depending on the market environment. Note the risk asymmetry: HOOD runs 3.7 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
HOOD vs VUG: side by side
| HOOD (Robinhood Markets) | VUG (Vanguard Growth ETF) | |
|---|---|---|
| 1-year return | +6.6% | +16.2% |
| 5-year return | +151.5% | +78.4% |
| Volatility (ann.) | 71.4% | 19.4% |
| Beta vs S&P 500 | 2.88 | 1.28 |
| Max drawdown (3Y) | -57.3% | -22.8% |
| Market cap | $98.7B | – |
| P/E (trailing) | 48.1 | – |
| Dividend yield | 0.00% | 0.40% |
| Expense ratio | – | 0.03% |
| Assets under management | – | $372.0B |
| Sector / category | Financials | ETF · US Style |
VUG, Vanguard's Large Growth fund, carries $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% trailing dividend yield.
Year-by-year returns
| Year | HOOD | VUG |
|---|---|---|
| 2022 | -54.2% | -33.2% |
| 2023 | +56.5% | +46.8% |
| 2024 | +192.5% | +32.7% |
| 2025 | +203.5% | +19.4% |
| 2026 | -3.0% | +9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that VUG holds HOOD at a 0.2% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are HOOD and VUG good diversifiers for each other?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between HOOD and VUG?
Using weekly returns as of 2026-08-27: 0.60 over 3 years, with 0.65 over the last year and 0.55 over 5 years.
Is VUG a good diversifier for HOOD?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.60 mean?
A reading of 0.60 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/hood-vs-vug.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/hood-vs-vug/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: HOOD correlations · VUG correlations
