SPY vs VWO: Correlation & Overlap
How closely do SPDR S&P 500 ETF Trust (SPY) and Vanguard FTSE Emerging Markets ETF (VWO) trade together? Their weekly returns over three years give a correlation of 0.71, which is strong. By holdings, the two funds overlap 0.1% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and VWO?
On 3 years of weekly data the SPY/VWO correlation comes out at 0.71, strong. The relationship has been stable: the 1-year correlation (0.79) sits close to the 3-year figure. The 5-year figure is 0.65, and annualized covariance runs at 155.9 %².
By 3-year correlation, VWO places #83 of the 4755 assets tracked against SPY. Twelve-month performance is nearly a tie, at +20.6% for SPY and +21.6% for VWO. The rolling one-year correlation moved between 0.51 and 0.80 over the past three years, a moderate range.
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 VWO: side by side
| SPY (SPDR S&P 500 ETF Trust) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +20.6% | +21.6% |
| 5-year return | +82.4% | +38.2% |
| Volatility (ann.) | 14.5% | 15.2% |
| Beta vs S&P 500 | 1.00 | 0.75 |
| Max drawdown (3Y) | -18.8% | -17.4% |
| Dividend yield | 1.01% | 2.36% |
| Expense ratio | 0.09% | 0.06% |
| Assets under management | $795.3B | $162.0B |
| Sector / category | ETF · US Large Cap | ETF · International |
On the fund side, SPY sits in the Large Blend category at State Street Investment Management, with $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield. On the fund side, VWO sits in the Diversified Emerging Mkts category at Vanguard, with $162.0B under management, 4113 holdings, a 0.06% expense ratio, a 2.36% trailing dividend yield.
Portfolio overlap between SPY and VWO
The two portfolios are largely distinct. Weighing the shared positions, 0.1% of the two funds is identical, spread across 10 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in SPY | Weight in VWO |
|---|---|---|
| HAL | 0.04% | 0.10% |
| TEL | 0.09% | 0.02% |
| EL | 0.04% | 0.02% |
| CCL | 0.05% | 0.01% |
| ECL | 0.11% | 0.01% |
| LULU | 0.02% | 0.01% |
| IEX | 0.03% | 0.01% |
| SRE | 0.08% | 0.01% |
| PTC | 0.03% | 0.00% |
| SPG | 0.11% | 0.00% |
Largest positions held only by SPY: NVDA (7.68%), AAPL (6.96%), MSFT (5.58%), AMZN (3.85%), GOOGL (3.03%). Only by VWO: 2330 (18.65%), 700 (3.97%), 9988 (2.90%), 2454 (1.62%), 939 (1.07%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 10 common positions shown.
Year-by-year returns
| Year | SPY | VWO |
|---|---|---|
| 2022 | -18.2% | -18.0% |
| 2023 | +26.2% | +9.3% |
| 2024 | +24.9% | +10.6% |
| 2025 | +17.7% | +25.6% |
| 2026 | +13.7% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and VWO good diversifiers for each other?
Only partially. A correlation of 0.71 means SPY and VWO share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between SPY and VWO?
As of 2026-08-27, the correlation of weekly returns between SPY and VWO is 0.71 over 3 years, 0.79 over 1 year and 0.65 over 5 years.
Is VWO a good diversifier for SPY?
Only partially. A correlation of 0.71 means SPY and VWO share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do SPY and VWO overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0.1% by weight over 10 common positions.
Use this data
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Hubs: SPY correlations · VWO correlations
