USMV vs VIG: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI USA Min Vol Factor ETF (USMV) and Vanguard Dividend Appreciation ETF (VIG) carry a correlation of 0.88, a very strong link. The two funds also share 33.5% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are USMV and VIG?
On 3 years of weekly data the USMV/VIG correlation comes out at 0.88, very strong, meaning they move nearly in lockstep. Lately the two have drifted apart, with the 1-year correlation at 0.72 versus 0.88 over 3 years. The 5-year figure is 0.93, and annualized covariance runs at 104.0 %².
Few assets follow USMV as closely as VIG, which ranks #2 of 125 tracked partners. Over the last 12 months VIG came out ahead by 7.0 percentage points (+10.1% against +17.1%). Stability stands out here, with the rolling one-year correlation confined to 0.73 through 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.
USMV vs VIG: side by side
| USMV (iShares MSCI USA Min Vol Factor ETF) | VIG (Vanguard Dividend Appreciation ETF) | |
|---|---|---|
| 1-year return | +10.1% | +17.1% |
| 5-year return | +42.3% | +64.0% |
| Volatility (ann.) | 9.9% | 11.9% |
| Beta vs S&P 500 | 0.51 | 0.74 |
| Max drawdown (3Y) | -9.4% | -15.0% |
| Dividend yield | 1.48% | 1.50% |
| Expense ratio | 0.15% | 0.04% |
| Assets under management | $23.6B | $130.9B |
| Sector / category | ETF · US Style | ETF · Dividend |
On the fund side, USMV sits in the Large Blend category at iShares, with $23.6B under management, 164 holdings, a 0.15% expense ratio, a 1.48% 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 USMV and VIG
The two portfolios partially overlap. Weighing the shared positions, 33.5% of the two funds is identical, spread across 68 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in USMV | Weight in VIG |
|---|---|---|
| MSFT | 1.68% | 4.35% |
| JNJ | 1.58% | 2.68% |
| MRK | 1.54% | 1.40% |
| CSCO | 1.38% | 1.99% |
| XOM | 1.38% | 2.80% |
| MA | 1.28% | 2.01% |
| KO | 1.28% | 1.47% |
| V | 1.02% | 2.46% |
| PG | 1.02% | 1.46% |
| IBM | 1.03% | 0.91% |
| AVGO | 0.90% | 4.65% |
| AAPL | 0.88% | 4.47% |
| APH | 1.54% | 0.86% |
| MCD | 1.06% | 0.83% |
| PEP | 0.85% | 0.83% |
Largest positions held only by USMV: NEM (1.65%), VRTX (1.63%), WELL (1.57%), VZ (1.46%), BRK.B (1.41%). Only by VIG: JPM (4.09%), BAC (1.75%), CAT (1.63%), LRCX (1.59%), GS (1.24%).
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 | USMV | VIG |
|---|---|---|
| 2022 | -9.4% | -9.8% |
| 2023 | +10.3% | +14.5% |
| 2024 | +15.7% | +17.0% |
| 2025 | +7.6% | +14.2% |
| 2026 | +9.1% | +11.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are USMV and VIG good diversifiers for each other?
Not really. At 0.88, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between USMV and VIG?
Using weekly returns as of 2026-08-27: 0.88 over 3 years, with 0.72 over the last year and 0.93 over 5 years.
Is VIG a good diversifier for USMV?
Not really. At 0.88, the two trade almost as one position, and owning both buys little extra protection.
How much do USMV and VIG overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 33.5% by weight over 68 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/usmv-vs-vig.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/usmv-vs-vig/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: USMV correlations · VIG correlations
