USMV vs VUG: Correlation & Overlap
iShares MSCI USA Min Vol Factor ETF (USMV) and Vanguard Growth ETF (VUG) show a strong relationship: their 3-year correlation of weekly returns is 0.60. Looking through to holdings, 22.5% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are USMV and VUG?
Over the past 3 years, USMV and VUG moved with a correlation of 0.60, which is strong. The link has loosened recently: the 1-year correlation (0.40) runs below the 3-year figure (0.60). Over 5 years the correlation is 0.72, and the annualized covariance of weekly returns is 114.9 %².
Within USMV's tracked universe of 125 assets, VUG comes in at #42 by 3-year correlation. On 12-month performance VUG holds a 6.1-point edge, +10.1% against +16.2%. On a rolling one-year basis the correlation drifted between 0.35 and 0.76, a moderate band. Note the risk asymmetry: VUG runs 2.0 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 VUG: side by side
| USMV (iShares MSCI USA Min Vol Factor ETF) | VUG (Vanguard Growth ETF) | |
|---|---|---|
| 1-year return | +10.1% | +16.2% |
| 5-year return | +42.3% | +78.4% |
| Volatility (ann.) | 9.9% | 19.4% |
| Beta vs S&P 500 | 0.51 | 1.28 |
| Max drawdown (3Y) | -9.4% | -22.8% |
| Dividend yield | 1.48% | 0.40% |
| Expense ratio | 0.15% | 0.03% |
| Assets under management | $23.6B | $372.0B |
| Sector / category | ETF · US Style | ETF · US Style |
USMV, iShares's Large Blend fund, carries $23.6B under management, 164 holdings, a 0.15% expense ratio, a 1.48% 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 USMV and VUG
The two portfolios partially overlap. Weighing the shared positions, 22.5% of the two funds is identical, spread across 61 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in USMV | Weight in VUG |
|---|---|---|
| MSFT | 1.68% | 9.61% |
| NVDA | 1.35% | 12.84% |
| MA | 1.28% | 1.28% |
| V | 1.02% | 1.66% |
| AVGO | 0.90% | 4.47% |
| AAPL | 0.88% | 12.63% |
| LLY | 0.79% | 2.72% |
| PANW | 0.94% | 0.77% |
| PLTR | 1.19% | 0.76% |
| AMD | 0.67% | 2.17% |
| GEV | 0.59% | 0.76% |
| AMAT | 0.59% | 1.14% |
| APH | 1.54% | 0.57% |
| ANET | 0.57% | 0.56% |
| MCD | 1.06% | 0.55% |
Largest positions held only by USMV: NEM (1.65%), JNJ (1.58%), MRK (1.54%), CB (1.47%), VZ (1.46%). Only by VUG: GOOGL (5.81%), TSLA (2.45%), LRCX (1.03%), KLAC (0.68%), GE (0.54%).
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 | VUG |
|---|---|---|
| 2022 | -9.4% | -33.2% |
| 2023 | +10.3% | +46.8% |
| 2024 | +15.7% | +32.7% |
| 2025 | +7.6% | +19.4% |
| 2026 | +9.1% | +9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are USMV and VUG good diversifiers for each other?
Only partially. A correlation of 0.60 means USMV and VUG 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 USMV and VUG?
The USMV/VUG correlation stands at 0.60 on a 3-year window (1 year: 0.40, 5 years: 0.72), computed from weekly returns as of 2026-08-27.
Is VUG a good diversifier for USMV?
Only partially. A correlation of 0.60 means USMV and VUG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do USMV and VUG overlap?
The two funds share 61 holdings amounting to 22.5% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/usmv-vs-vug.json
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[](https://www.pairbook.io/pair/usmv-vs-vug/)
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Related comparisons
Hubs: USMV correlations · VUG correlations
