QUAL vs VUG: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI USA Quality Factor ETF (QUAL) and Vanguard Growth ETF (VUG) carry a correlation of 0.91, a very strong link. By holdings, the two funds overlap 43.4% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QUAL and VUG?
Over the past 3 years, QUAL and VUG moved with a correlation of 0.91, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.82 over 1 year against 0.91 over 3. Over 5 years the correlation is 0.94, and the annualized covariance of weekly returns is 246.4 %².
Among the 106 assets we track against QUAL, VUG ranks #9 by 3-year correlation. Twelve-month performance is nearly a tie, at +19.7% for QUAL and +16.2% for VUG. The rolling one-year correlation stayed in a tight band between 0.79 and 0.96 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 VUG: side by side
| QUAL (iShares MSCI USA Quality Factor ETF) | VUG (Vanguard Growth ETF) | |
|---|---|---|
| 1-year return | +19.7% | +16.2% |
| 5-year return | +68.0% | +78.4% |
| Volatility (ann.) | 14.0% | 19.4% |
| Beta vs S&P 500 | 0.93 | 1.28 |
| Max drawdown (3Y) | -18.0% | -22.8% |
| Dividend yield | 0.86% | 0.40% |
| Expense ratio | 0.15% | 0.03% |
| Assets under management | $46.5B | $372.0B |
| Sector / category | ETF · US Style | ETF · US Style |
QUAL is a Large Blend fund from iShares: $46.5B under management, 123 holdings, a 0.15% expense ratio, a 0.86% trailing dividend yield. VUG, Vanguard's Large Growth fund, carries $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% trailing dividend yield.
Portfolio overlap between QUAL and VUG
The two portfolios overlap heavily, with 46 holdings in common adding up to 43.4% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in QUAL | Weight in VUG |
|---|---|---|
| MSFT | 7.51% | 9.61% |
| AAPL | 6.62% | 12.63% |
| NVDA | 6.00% | 12.84% |
| META | 3.75% | 3.41% |
| LLY | 3.72% | 2.72% |
| GOOGL | 1.93% | 5.81% |
| V | 3.26% | 1.66% |
| GOOG | 1.52% | 4.64% |
| MA | 2.34% | 1.28% |
| AMAT | 2.88% | 1.14% |
| COST | 1.09% | 1.19% |
| LRCX | 3.66% | 1.03% |
| NFLX | 1.91% | 0.86% |
| KLAC | 2.44% | 0.68% |
| ANET | 1.52% | 0.56% |
Largest positions held only by QUAL: XOM (2.18%), JNJ (2.13%), BRK.B (1.79%), ROST (1.44%), MRK (1.44%). Only by VUG: AMZN (5.16%), AVGO (4.47%), TSLA (2.45%), AMD (2.17%), PANW (0.77%).
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 | VUG |
|---|---|---|
| 2022 | -20.5% | -33.2% |
| 2023 | +30.9% | +46.8% |
| 2024 | +22.3% | +32.7% |
| 2025 | +12.7% | +19.4% |
| 2026 | +13.5% | +9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QUAL and VUG good diversifiers for each other?
No: a correlation of 0.91 means QUAL and VUG tend to fall together, which is precisely when diversification is supposed to help. The 43.4% holdings overlap makes the redundancy concrete: much of it is the same book twice.
FAQ
What is the correlation between QUAL and VUG?
As of 2026-08-27, the correlation of weekly returns between QUAL and VUG is 0.91 over 3 years, 0.82 over 1 year and 0.94 over 5 years.
Is VUG a good diversifier for QUAL?
No: a correlation of 0.91 means QUAL and VUG tend to fall together, which is precisely when diversification is supposed to help. The 43.4% holdings overlap makes the redundancy concrete: much of it is the same book twice.
How much do QUAL and VUG overlap?
43.4% by weight, across 46 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qual-vs-vug.json
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Related comparisons
Hubs: QUAL correlations · VUG correlations
