MSCI vs VOO: Correlation
How closely do MSCI (MSCI) and Vanguard S&P 500 ETF (VOO) trade together? Their weekly returns over three years give a correlation of 0.48, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MSCI and VOO?
Across a 3-year window, the weekly returns of MSCI and VOO correlate at 0.48, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.37 versus 0.48 over 3 years. Stretching to 5 years gives 0.63, with an annualized covariance of 176.3 %².
By 3-year correlation, VOO places #12 of the 27 assets tracked against MSCI. The last year tells two different stories: VOO led by 19.3 percentage points, +1.3% for MSCI against +20.6% for VOO. The rolling one-year correlation moved between 0.35 and 0.71 over the past three years, a moderate range. Note the risk asymmetry: MSCI runs 1.8 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.
MSCI vs VOO: side by side
| MSCI (MSCI) | VOO (Vanguard S&P 500 ETF) | |
|---|---|---|
| 1-year return | +1.3% | +20.6% |
| 5-year return | -5.6% | +83.0% |
| Volatility (ann.) | 25.4% | 14.4% |
| Beta vs S&P 500 | 0.85 | 0.99 |
| Max drawdown (3Y) | -26.0% | -18.7% |
| Market cap | $41.4B | – |
| P/E (trailing) | 30.9 | – |
| Dividend yield | 1.36% | 1.07% |
| Expense ratio | – | 0.03% |
| Assets under management | – | $1,686.9B |
| Sector / category | Financials | ETF · US Large Cap |
VOO, Vanguard's Large Blend fund, carries $1,686.9B under management, 503 holdings, a 0.03% expense ratio, a 1.07% trailing dividend yield.
Year-by-year returns
| Year | MSCI | VOO |
|---|---|---|
| 2022 | -23.3% | -18.2% |
| 2023 | +22.9% | +26.3% |
| 2024 | +7.3% | +25.0% |
| 2025 | -3.2% | +17.8% |
| 2026 | +0.3% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that VOO holds MSCI at a 0.06% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are MSCI and VOO good diversifiers for each other?
Reasonably. At 0.48, MSCI and VOO keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between MSCI and VOO?
As of 2026-08-27, the correlation of weekly returns between MSCI and VOO is 0.48 over 3 years, 0.37 over 1 year and 0.63 over 5 years.
Is VOO a good diversifier for MSCI?
Reasonably. At 0.48, MSCI and VOO keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.48 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: MSCI correlations · VOO correlations
