MDY vs VUG: Correlation & Overlap
How closely do SPDR S&P MidCap 400 ETF (MDY) and Vanguard Growth ETF (VUG) trade together? Their weekly returns over three years give a correlation of 0.64, which is strong. Looking through to holdings, 0.1% 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 VUG?
Over the past 3 years, MDY and VUG moved with a correlation of 0.64, which is strong. The link has loosened recently: the 1-year correlation (0.45) runs below the 3-year figure (0.64). Over 5 years the correlation is 0.74, and the annualized covariance of weekly returns is 204.1 %².
Among the 359 assets we track against MDY, VUG ranks #131 by 3-year correlation. Twelve-month performance is nearly a tie, at +18.3% for MDY and +16.2% for VUG. The rolling one-year correlation moved between 0.42 and 0.84 over the past three years, a moderate range.
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 VUG: side by side
| MDY (SPDR S&P MidCap 400 ETF) | VUG (Vanguard Growth ETF) | |
|---|---|---|
| 1-year return | +18.3% | +16.2% |
| 5-year return | +47.5% | +78.4% |
| Volatility (ann.) | 16.5% | 19.4% |
| Beta vs S&P 500 | 0.91 | 1.28 |
| Max drawdown (3Y) | -24.0% | -22.8% |
| Dividend yield | 1.02% | 0.40% |
| Expense ratio | 0.23% | 0.03% |
| Assets under management | $26.5B | $372.0B |
| Sector / category | ETF · US Small & Mid Cap | ETF · US Style |
MDY is a Mid-Cap Blend fund from State Street Investment Management: $26.5B under management, 400 holdings, a 0.23% expense ratio, a 1.02% 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 MDY and VUG
The two portfolios are largely distinct: 0.1% of the funds' weight sits in the same underlying holdings (1 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in MDY | Weight in VUG |
|---|---|---|
| BURL | 0.54% | 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 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. Top 1 common positions shown.
Year-by-year returns
| Year | MDY | VUG |
|---|---|---|
| 2022 | -13.3% | -33.2% |
| 2023 | +16.1% | +46.8% |
| 2024 | +13.6% | +32.7% |
| 2025 | +7.2% | +19.4% |
| 2026 | +16.4% | +9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MDY and VUG good diversifiers for each other?
To a limited degree. At 0.64 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 MDY and VUG?
The MDY/VUG correlation stands at 0.64 on a 3-year window (1 year: 0.45, 5 years: 0.74), computed from weekly returns as of 2026-08-27.
Is VUG a good diversifier for MDY?
To a limited degree. At 0.64 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do MDY and VUG overlap?
The two funds share 1 holdings amounting to 0.1% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mdy-vs-vug.json
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[](https://www.pairbook.io/pair/mdy-vs-vug/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MDY correlations · VUG correlations
