USMV vs VNQ: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI USA Min Vol Factor ETF (USMV) and Vanguard Real Estate ETF (VNQ) carry a correlation of 0.68, a strong link. By holdings, the two funds overlap 2.6% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are USMV and VNQ?
On 3 years of weekly data the USMV/VNQ correlation comes out at 0.68, strong. The past 12 months show a weaker link (0.49) than the 3-year average (0.68). The 5-year figure is 0.78, and annualized covariance runs at 112.1 %².
By 3-year correlation, VNQ places #25 of the 125 assets tracked against USMV. Neither side won the trailing year by much: +10.1% against +10.3%. The rolling one-year correlation moved between 0.51 and 0.82 over the past three years, a moderate range. Risk is not evenly split, since VNQ carries 1.7 times the volatility of the other side.
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 VNQ: side by side
| USMV (iShares MSCI USA Min Vol Factor ETF) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +10.1% | +10.3% |
| 5-year return | +42.3% | +9.5% |
| Volatility (ann.) | 9.9% | 16.6% |
| Beta vs S&P 500 | 0.51 | 0.59 |
| Max drawdown (3Y) | -9.4% | -17.5% |
| Dividend yield | 1.48% | 3.51% |
| Expense ratio | 0.15% | 0.13% |
| Assets under management | $23.6B | $73.1B |
| Sector / category | ETF · US Style | ETF · Real Estate |
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. VNQ is a Real Estate fund from Vanguard: $73.1B under management, 140 holdings, a 0.13% expense ratio, a 3.51% trailing dividend yield.
Portfolio overlap between USMV and VNQ
The two portfolios are largely distinct. Weighing the shared positions, 2.6% of the two funds is identical, spread across 4 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by USMV: MSFT (1.68%), NEM (1.65%), VRTX (1.63%), JNJ (1.58%), APH (1.54%). Only by VNQ: VRTPX (14.54%), PLD (7.04%), EQIX (5.25%), AMT (4.22%), SPG (3.89%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 4 common positions shown.
Year-by-year returns
| Year | USMV | VNQ |
|---|---|---|
| 2022 | -9.4% | -26.3% |
| 2023 | +10.3% | +11.9% |
| 2024 | +15.7% | +4.8% |
| 2025 | +7.6% | +3.2% |
| 2026 | +9.1% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are USMV and VNQ good diversifiers for each other?
To a limited degree. At 0.68 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between USMV and VNQ?
The USMV/VNQ correlation stands at 0.68 on a 3-year window (1 year: 0.49, 5 years: 0.78), computed from weekly returns as of 2026-08-27.
Is VNQ a good diversifier for USMV?
To a limited degree. At 0.68 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do USMV and VNQ overlap?
The two funds share 4 holdings amounting to 2.6% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/usmv-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/usmv-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: USMV correlations · VNQ correlations
