ITW vs VTV: Correlation
How closely do Illinois Tool Works (ITW) and Vanguard Value ETF (VTV) trade together? Their weekly returns over three years give a correlation of 0.70, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ITW and VTV?
Over the past 3 years, ITW and VTV moved with a correlation of 0.70, which is strong. Recent behaviour matches the longer record: 0.61 over 1 year against 0.70 over 3. Over 5 years the correlation is 0.73, and the annualized covariance of weekly returns is 158.2 %².
By 3-year correlation, VTV places #9 of the 81 assets tracked against ITW. Their recent paths diverged sharply: over the last 12 months VTV outperformed by 17.5 percentage points (+8.2% for ITW against +25.7% for VTV). Stability stands out here, with the rolling one-year correlation confined to 0.63 through 0.80. Risk is not evenly split, since ITW carries 1.6 times the volatility of the other side.
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.
ITW vs VTV: side by side
| ITW (Illinois Tool Works) | VTV (Vanguard Value ETF) | |
|---|---|---|
| 1-year return | +8.2% | +25.7% |
| 5-year return | +36.1% | +79.1% |
| Volatility (ann.) | 19.0% | 11.9% |
| Beta vs S&P 500 | 0.64 | 0.65 |
| Max drawdown (3Y) | -20.6% | -14.5% |
| Market cap | $80.2B | – |
| P/E (trailing) | 25.8 | – |
| Dividend yield | 2.26% | 1.86% |
| Expense ratio | – | 0.03% |
| Assets under management | – | $256.4B |
| Sector / category | Industrials | ETF · US Style |
On the fund side, VTV sits in the Large Value category at Vanguard, with $256.4B under management, 308 holdings, a 0.03% expense ratio, a 1.86% trailing dividend yield.
Year-by-year returns
| Year | ITW | VTV |
|---|---|---|
| 2022 | -8.5% | -2.1% |
| 2023 | +21.6% | +9.3% |
| 2024 | -1.0% | +16.0% |
| 2025 | -0.4% | +15.3% |
| 2026 | +15.8% | +19.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
ITW represents 0.29% of VTV's portfolio, so part of any move in VTV is ITW itself, and the correlation between them is partly mechanical.
Are ITW and VTV good diversifiers for each other?
To a limited degree. At 0.70 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between ITW and VTV?
As of 2026-08-27, the correlation of weekly returns between ITW and VTV is 0.70 over 3 years, 0.61 over 1 year and 0.73 over 5 years.
Is VTV a good diversifier for ITW?
To a limited degree. At 0.70 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.70 mean?
A reading of 0.70 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/itw-vs-vtv.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/itw-vs-vtv/)
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Related comparisons
Hubs: ITW correlations · VTV correlations
