SPY vs VIG: Correlation & Overlap
How closely do SPDR S&P 500 ETF Trust (SPY) and Vanguard Dividend Appreciation ETF (VIG) trade together? Their weekly returns over three years give a correlation of 0.91, which is very strong. The two funds also share 40.9% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and VIG?
Over the past 3 years, SPY and VIG moved with a correlation of 0.91, which is very strong, meaning they move nearly in lockstep. The past 12 months show a weaker link (0.80) than the 3-year average (0.91). Over 5 years the correlation is 0.94, and the annualized covariance of weekly returns is 155.5 %².
By 3-year correlation, VIG places #14 of the 4755 assets tracked against SPY. Twelve-month performance is nearly a tie, at +20.6% for SPY and +17.1% for VIG. The link looks structural: the rolling one-year correlation barely moved, holding between 0.80 and 0.96.
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.
SPY vs VIG: side by side
| SPY (SPDR S&P 500 ETF Trust) | VIG (Vanguard Dividend Appreciation ETF) | |
|---|---|---|
| 1-year return | +20.6% | +17.1% |
| 5-year return | +82.4% | +64.0% |
| Volatility (ann.) | 14.5% | 11.9% |
| Beta vs S&P 500 | 1.00 | 0.74 |
| Max drawdown (3Y) | -18.8% | -15.0% |
| Dividend yield | 1.01% | 1.50% |
| Expense ratio | 0.09% | 0.04% |
| Assets under management | $795.3B | $130.9B |
| Sector / category | ETF · US Large Cap | ETF · Dividend |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% 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 SPY and VIG
The two portfolios overlap heavily, with 169 holdings in common adding up to 40.9% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in SPY | Weight in VIG |
|---|---|---|
| AAPL | 6.96% | 4.47% |
| MSFT | 5.58% | 4.35% |
| AVGO | 2.55% | 4.65% |
| JPM | 1.44% | 4.09% |
| LLY | 1.42% | 3.94% |
| XOM | 0.99% | 2.80% |
| JNJ | 0.98% | 2.68% |
| V | 0.96% | 2.46% |
| MA | 0.73% | 2.01% |
| ABBV | 0.70% | 1.92% |
| WMT | 0.69% | 2.12% |
| CSCO | 0.67% | 1.99% |
| COST | 0.64% | 1.83% |
| BAC | 0.61% | 1.75% |
| LRCX | 0.59% | 1.59% |
Largest positions held only by SPY: NVDA (7.68%), AMZN (3.85%), GOOGL (3.03%), GOOG (2.42%), META (1.91%). Only by VIG: SUNB (0.13%), RS (0.09%), RBA (0.09%), HEI.A (0.09%), ITT (0.08%).
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 | SPY | VIG |
|---|---|---|
| 2022 | -18.2% | -9.8% |
| 2023 | +26.2% | +14.5% |
| 2024 | +24.9% | +17.0% |
| 2025 | +17.7% | +14.2% |
| 2026 | +13.7% | +11.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and VIG good diversifiers for each other?
No: a correlation of 0.91 means SPY and VIG tend to fall together, which is precisely when diversification is supposed to help. The 40.9% holdings overlap makes the redundancy concrete: much of it is the same book twice.
FAQ
What is the correlation between SPY and VIG?
As of 2026-08-27, the correlation of weekly returns between SPY and VIG is 0.91 over 3 years, 0.80 over 1 year and 0.94 over 5 years.
Is VIG a good diversifier for SPY?
No: a correlation of 0.91 means SPY and VIG tend to fall together, which is precisely when diversification is supposed to help. The 40.9% holdings overlap makes the redundancy concrete: much of it is the same book twice.
How much do SPY and VIG overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 40.9% by weight over 169 common positions.
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Hubs: SPY correlations · VIG correlations
