NDAQ vs USMV: Correlation
Nasdaq, Inc. (NDAQ) and iShares MSCI USA Min Vol Factor ETF (USMV) show a moderate relationship: their 3-year correlation of weekly returns is 0.53.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NDAQ and USMV?
On 3 years of weekly data the NDAQ/USMV correlation comes out at 0.53, moderate. The link has loosened recently: the 1-year correlation (0.35) runs below the 3-year figure (0.53). The 5-year figure is 0.62, and annualized covariance runs at 121.3 %².
Among the 35 assets we track against NDAQ, USMV ranks #14 by 3-year correlation. Twelve-month performance is nearly a tie, at +6.1% for NDAQ and +10.1% for USMV. Across three years, the rolling one-year figure varied moderately, from 0.34 to 0.74. One caveat on sizing: NDAQ is 2.3 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
NDAQ vs USMV: side by side
| NDAQ (Nasdaq, Inc.) | USMV (iShares MSCI USA Min Vol Factor ETF) | |
|---|---|---|
| 1-year return | +6.1% | +10.1% |
| 5-year return | +64.4% | +42.3% |
| Volatility (ann.) | 23.2% | 9.9% |
| Beta vs S&P 500 | 0.80 | 0.51 |
| Max drawdown (3Y) | -23.4% | -9.4% |
| Market cap | $55.5B | – |
| P/E (trailing) | 29.0 | – |
| Dividend yield | 1.13% | 1.48% |
| Expense ratio | – | 0.15% |
| Assets under management | – | $23.6B |
| Sector / category | Financials | ETF · US Style |
USMV, iShares's Large Blend fund, carries $23.6B under management, 164 holdings, a 0.15% expense ratio, a 1.48% trailing dividend yield.
Year-by-year returns
| Year | NDAQ | USMV |
|---|---|---|
| 2022 | -11.2% | -9.4% |
| 2023 | -3.7% | +10.3% |
| 2024 | +34.8% | +15.7% |
| 2025 | +27.2% | +7.6% |
| 2026 | +3.0% | +9.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NDAQ and USMV good diversifiers for each other?
Somewhat, no more. With 0.53 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between NDAQ and USMV?
Using weekly returns as of 2026-08-27: 0.53 over 3 years, with 0.35 over the last year and 0.62 over 5 years.
Is USMV a good diversifier for NDAQ?
Somewhat, no more. With 0.53 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.53 mean?
A reading of 0.53 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ndaq-vs-usmv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ndaq-vs-usmv/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: NDAQ correlations · USMV correlations
