MSFT vs VUG: Correlation
Measured on weekly returns over the past three years, Microsoft (MSFT) and Vanguard Growth ETF (VUG) carry a correlation of 0.69, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MSFT and VUG?
Across a 3-year window, the weekly returns of MSFT and VUG correlate at 0.69, strong. Little has changed lately, as the 1-year reading of 0.63 lands near the 3-year figure. Stretching to 5 years gives 0.76, with an annualized covariance of 365.8 %².
In MSFT's tracked universe of 39 assets, VUG sits right near the top at #3. The last year tells two different stories: VUG led by 15.7 percentage points, +0.5% for MSFT against +16.2% for VUG. Stability stands out here, with the rolling one-year correlation confined to 0.63 through 0.86.
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 VUG: side by side
| MSFT (Microsoft) | VUG (Vanguard Growth ETF) | |
|---|---|---|
| 1-year return | +0.5% | +16.2% |
| 5-year return | +73.3% | +78.4% |
| Volatility (ann.) | 27.5% | 19.4% |
| Beta vs S&P 500 | 1.12 | 1.28 |
| Max drawdown (3Y) | -34.5% | -22.8% |
| Market cap | $3,750.3B | – |
| P/E (trailing) | 28.1 | – |
| Dividend yield | 0.73% | 0.40% |
| Expense ratio | – | 0.03% |
| Assets under management | – | $372.0B |
| Sector / category | Information Technology | ETF · US Style |
VUG, Vanguard's Large Growth fund, carries $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% trailing dividend yield.
Year-by-year returns
| Year | MSFT | VUG |
|---|---|---|
| 2022 | -28.0% | -33.2% |
| 2023 | +58.2% | +46.8% |
| 2024 | +12.9% | +32.7% |
| 2025 | +15.6% | +19.4% |
| 2026 | +5.1% | +9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that VUG holds MSFT at a 9.61% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are MSFT and VUG good diversifiers for each other?
To a limited degree. At 0.69 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 VUG?
The MSFT/VUG correlation stands at 0.69 on a 3-year window (1 year: 0.63, 5 years: 0.76), computed from weekly returns as of 2026-08-27.
Is VUG a good diversifier for MSFT?
To a limited degree. At 0.69 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 0.69 mean?
On the −1 to +1 scale, 0.69 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/msft-vs-vug.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/msft-vs-vug/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MSFT correlations · VUG correlations
