MDY vs VIG: Correlation & Overlap
Measured on weekly returns over the past three years, SPDR S&P MidCap 400 ETF (MDY) and Vanguard Dividend Appreciation ETF (VIG) carry a correlation of 0.87, a very strong link. Looking through to holdings, 3.1% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MDY and VIG?
Across a 3-year window, the weekly returns of MDY and VIG correlate at 0.87, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.82 lands near the 3-year figure. Stretching to 5 years gives 0.89, with an annualized covariance of 171.0 %².
Among the 359 assets we track against MDY, VIG ranks #10 by 3-year correlation. Twelve-month performance is nearly a tie, at +18.3% for MDY and +17.1% for VIG. The link looks structural: the rolling one-year correlation barely moved, holding between 0.81 and 0.93.
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.
MDY vs VIG: side by side
| MDY (SPDR S&P MidCap 400 ETF) | VIG (Vanguard Dividend Appreciation ETF) | |
|---|---|---|
| 1-year return | +18.3% | +17.1% |
| 5-year return | +47.5% | +64.0% |
| Volatility (ann.) | 16.5% | 11.9% |
| Beta vs S&P 500 | 0.91 | 0.74 |
| Max drawdown (3Y) | -24.0% | -15.0% |
| Dividend yield | 1.02% | 1.50% |
| Expense ratio | 0.23% | 0.04% |
| Assets under management | $26.5B | $130.9B |
| Sector / category | ETF · US Small & Mid Cap | ETF · Dividend |
On the fund side, MDY sits in the Mid-Cap Blend category at State Street Investment Management, with $26.5B under management, 400 holdings, a 0.23% expense ratio, a 1.02% trailing dividend yield. VIG, Vanguard's Large Blend fund, carries $130.9B under management, 333 holdings, a 0.04% expense ratio, a 1.50% trailing dividend yield.
Portfolio overlap between MDY and VIG
The two portfolios are largely distinct: 3.1% of the funds' weight sits in the same underlying holdings (78 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in MDY | Weight in VIG |
|---|---|---|
| RS | 0.55% | 0.09% |
| RBA | 0.44% | 0.09% |
| ITT | 0.52% | 0.08% |
| RGLD | 0.59% | 0.07% |
| RGA | 0.44% | 0.07% |
| BWXT | 0.38% | 0.07% |
| CSL | 0.40% | 0.06% |
| LECO | 0.44% | 0.06% |
| DTM | 0.37% | 0.06% |
| RPM | 0.37% | 0.06% |
| RNR | 0.39% | 0.06% |
| GGG | 0.36% | 0.06% |
| DKS | 0.23% | 0.06% |
| AIT | 0.35% | 0.06% |
| UNM | 0.37% | 0.05% |
Largest positions held only by MDY: TWLO (0.95%), P (0.94%), ILMN (0.93%), FTI (0.83%), ATI (0.80%). Only by VIG: AVGO (4.65%), AAPL (4.47%), MSFT (4.35%), JPM (4.09%), LLY (3.94%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | MDY | VIG |
|---|---|---|
| 2022 | -13.3% | -9.8% |
| 2023 | +16.1% | +14.5% |
| 2024 | +13.6% | +17.0% |
| 2025 | +7.2% | +14.2% |
| 2026 | +16.4% | +11.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MDY and VIG good diversifiers for each other?
No. With a correlation of 0.87, MDY and VIG move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between MDY and VIG?
Using weekly returns as of 2026-08-27: 0.87 over 3 years, with 0.82 over the last year and 0.89 over 5 years.
Is VIG a good diversifier for MDY?
No. With a correlation of 0.87, MDY and VIG move nearly in lockstep, so holding both adds very little diversification.
How much do MDY and VIG overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 3.1% by weight over 78 common positions.
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Hubs: MDY correlations · VIG correlations
