IWM vs VUG: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and Vanguard Growth ETF (VUG) carry a correlation of 0.63, a strong link. By holdings, the two funds overlap 0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and VUG?
Across a 3-year window, the weekly returns of IWM and VUG correlate at 0.63, strong. The relationship has been stable: the 1-year correlation (0.58) sits close to the 3-year figure. Stretching to 5 years gives 0.73, with an annualized covariance of 243.5 %².
Within IWM's tracked universe of 320 assets, VUG comes in at #89 by 3-year correlation. On 12-month performance IWM holds a 12.2-point edge, +28.4% against +16.2%. On a rolling one-year basis the correlation drifted between 0.39 and 0.83, a moderate band.
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.
IWM vs VUG: side by side
| IWM (iShares Russell 2000 ETF) | VUG (Vanguard Growth ETF) | |
|---|---|---|
| 1-year return | +28.4% | +16.2% |
| 5-year return | +41.5% | +78.4% |
| Volatility (ann.) | 19.8% | 19.4% |
| Beta vs S&P 500 | 1.06 | 1.28 |
| Max drawdown (3Y) | -27.5% | -22.8% |
| Dividend yield | 0.91% | 0.40% |
| Expense ratio | 0.19% | 0.03% |
| Assets under management | $80.1B | $372.0B |
| Sector / category | ETF · US Small & Mid Cap | ETF · US Style |
IWM is a Small Blend fund from iShares: $80.1B under management, 1757 holdings, a 0.19% expense ratio, a 0.91% trailing dividend yield. VUG, Vanguard's Large Growth fund, carries $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% trailing dividend yield.
Portfolio overlap between IWM and VUG
The two portfolios are largely distinct: 0% of the funds' weight sits in the same underlying holdings (0 common positions). Correlation tells you they move together; overlap tells you why.
Largest positions held only by IWM: MOGA (0.35%), UMBF (0.34%), CYTK (0.33%), GKOS (0.33%), EAT (0.33%). Only by VUG: NVDA (12.84%), AAPL (12.63%), MSFT (9.61%), GOOGL (5.81%), AMZN (5.16%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | IWM | VUG |
|---|---|---|
| 2022 | -20.5% | -33.2% |
| 2023 | +16.8% | +46.8% |
| 2024 | +11.4% | +32.7% |
| 2025 | +12.7% | +19.4% |
| 2026 | +22.3% | +9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and VUG good diversifiers for each other?
Only partially. A correlation of 0.63 means IWM and VUG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between IWM and VUG?
As of 2026-08-27, the correlation of weekly returns between IWM and VUG is 0.63 over 3 years, 0.58 over 1 year and 0.73 over 5 years.
Is VUG a good diversifier for IWM?
Only partially. A correlation of 0.63 means IWM and VUG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do IWM and VUG overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iwm-vs-vug.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iwm-vs-vug/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IWM correlations · VUG correlations
