MSFT vs VOO: Correlation
Measured on weekly returns over the past three years, Microsoft (MSFT) and Vanguard S&P 500 ETF (VOO) carry a correlation of 0.59, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MSFT and VOO?
Across a 3-year window, the weekly returns of MSFT and VOO correlate at 0.59, moderate. The relationship has been stable: the 1-year correlation (0.53) sits close to the 3-year figure. Stretching to 5 years gives 0.67, with an annualized covariance of 232.8 %².
Within MSFT's tracked universe of 39 assets, VOO comes in at #16 by 3-year correlation. The last year tells two different stories: VOO led by 20.1 percentage points, +0.5% for MSFT against +20.6% for VOO. The rolling one-year correlation stayed in a tight band between 0.53 and 0.75 over the past three years, which points to a structural rather than episodic relationship. Risk is not evenly split, since MSFT carries 1.9 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.
MSFT vs VOO: side by side
| MSFT (Microsoft) | VOO (Vanguard S&P 500 ETF) | |
|---|---|---|
| 1-year return | +0.5% | +20.6% |
| 5-year return | +73.3% | +83.0% |
| Volatility (ann.) | 27.5% | 14.4% |
| Beta vs S&P 500 | 1.12 | 0.99 |
| Max drawdown (3Y) | -34.5% | -18.7% |
| Market cap | $3,750.3B | – |
| P/E (trailing) | 28.1 | – |
| Dividend yield | 0.73% | 1.07% |
| Expense ratio | – | 0.03% |
| Assets under management | – | $1,686.9B |
| Sector / category | Information Technology | 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 | MSFT | VOO |
|---|---|---|
| 2022 | -28.0% | -18.2% |
| 2023 | +58.2% | +26.3% |
| 2024 | +12.9% | +25.0% |
| 2025 | +15.6% | +17.8% |
| 2026 | +5.1% | +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 MSFT at a 5.37% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are MSFT and VOO good diversifiers for each other?
To a limited degree. At 0.59 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 MSFT and VOO?
As of 2026-08-27, the correlation of weekly returns between MSFT and VOO is 0.59 over 3 years, 0.53 over 1 year and 0.67 over 5 years.
Is VOO a good diversifier for MSFT?
To a limited degree. At 0.59 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 0.59 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: MSFT correlations · VOO correlations
