QUAL vs VIG: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI USA Quality Factor ETF (QUAL) and Vanguard Dividend Appreciation ETF (VIG) carry a correlation of 0.92, a very strong link. The two funds also share 39.7% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QUAL and VIG?
Over the past 3 years, QUAL and VIG moved with a correlation of 0.92, which is very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.88 lands near the 3-year figure. Over 5 years the correlation is 0.94, and the annualized covariance of weekly returns is 152.5 %².
Among the 106 assets we track against QUAL, VIG ranks #7 by 3-year correlation. Neither side won the trailing year by much: +19.7% against +17.1%. The rolling one-year correlation stayed in a tight band between 0.83 and 0.97 over the past three years, which points to a structural rather than episodic relationship.
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.
QUAL vs VIG: side by side
| QUAL (iShares MSCI USA Quality Factor ETF) | VIG (Vanguard Dividend Appreciation ETF) | |
|---|---|---|
| 1-year return | +19.7% | +17.1% |
| 5-year return | +68.0% | +64.0% |
| Volatility (ann.) | 14.0% | 11.9% |
| Beta vs S&P 500 | 0.93 | 0.74 |
| Max drawdown (3Y) | -18.0% | -15.0% |
| Dividend yield | 0.86% | 1.50% |
| Expense ratio | 0.15% | 0.04% |
| Assets under management | $46.5B | $130.9B |
| Sector / category | ETF · US Style | ETF · Dividend |
On the fund side, QUAL sits in the Large Blend category at iShares, with $46.5B under management, 123 holdings, a 0.15% expense ratio, a 0.86% trailing dividend yield. VIG, Vanguard's Large Blend fund, carries $130.9B under management, 333 holdings, a 0.04% expense ratio, a 1.50% trailing dividend yield.
Portfolio overlap between QUAL and VIG
The two portfolios partially overlap. Weighing the shared positions, 39.7% of the two funds is identical, spread across 58 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in QUAL | Weight in VIG |
|---|---|---|
| AAPL | 6.62% | 4.47% |
| MSFT | 7.51% | 4.35% |
| LLY | 3.72% | 3.94% |
| V | 3.26% | 2.46% |
| XOM | 2.18% | 2.80% |
| JNJ | 2.13% | 2.68% |
| MA | 2.34% | 2.01% |
| LRCX | 3.66% | 1.59% |
| MRK | 1.44% | 1.40% |
| COST | 1.09% | 1.83% |
| KLAC | 2.44% | 1.04% |
| LIN | 1.02% | 0.96% |
| WMT | 0.91% | 2.12% |
| KO | 0.82% | 1.47% |
| PG | 0.81% | 1.46% |
Largest positions held only by QUAL: NVDA (6.00%), META (3.75%), TJX (3.40%), AMAT (2.88%), GOOGL (1.93%). Only by VIG: AVGO (4.65%), JPM (4.09%), CSCO (1.99%), ABBV (1.92%), BAC (1.75%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | QUAL | VIG |
|---|---|---|
| 2022 | -20.5% | -9.8% |
| 2023 | +30.9% | +14.5% |
| 2024 | +22.3% | +17.0% |
| 2025 | +12.7% | +14.2% |
| 2026 | +13.5% | +11.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QUAL and VIG good diversifiers for each other?
Not really. At 0.92, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between QUAL and VIG?
Using weekly returns as of 2026-08-27: 0.92 over 3 years, with 0.88 over the last year and 0.94 over 5 years.
Is VIG a good diversifier for QUAL?
Not really. At 0.92, the two trade almost as one position, and owning both buys little extra protection.
How much do QUAL and VIG overlap?
The two funds share 58 holdings amounting to 39.7% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qual-vs-vig.json
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Related comparisons
Hubs: QUAL correlations · VIG correlations
