USMV vs VWO: Correlation & Overlap
iShares MSCI USA Min Vol Factor ETF (USMV) and Vanguard FTSE Emerging Markets ETF (VWO) show a moderate relationship: their 3-year correlation of weekly returns is 0.49. The two funds also share 0.0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are USMV and VWO?
Over the past 3 years, USMV and VWO moved with a correlation of 0.49, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.35 versus 0.49 over 3 years. Over 5 years the correlation is 0.47, and the annualized covariance of weekly returns is 73.8 %².
By 3-year correlation, VWO places #76 of the 125 assets tracked against USMV. Over the last 12 months VWO came out ahead by 11.5 percentage points (+10.1% against +21.6%). The rolling one-year correlation moved between 0.34 and 0.69 over the past three years, a moderate range. One caveat on sizing: VWO is 1.5 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 VWO: side by side
| USMV (iShares MSCI USA Min Vol Factor ETF) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +10.1% | +21.6% |
| 5-year return | +42.3% | +38.2% |
| Volatility (ann.) | 9.9% | 15.2% |
| Beta vs S&P 500 | 0.51 | 0.75 |
| Max drawdown (3Y) | -9.4% | -17.4% |
| Dividend yield | 1.48% | 2.36% |
| Expense ratio | 0.15% | 0.06% |
| Assets under management | $23.6B | $162.0B |
| Sector / category | ETF · US Style | ETF · International |
USMV, iShares's Large Blend fund, carries $23.6B under management, 164 holdings, a 0.15% expense ratio, a 1.48% 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 USMV and VWO
The two portfolios are largely distinct, with 3 holdings in common adding up to 0.0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by USMV: MSFT (1.68%), NEM (1.65%), VRTX (1.63%), JNJ (1.58%), WELL (1.57%). 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 3 common positions shown.
Year-by-year returns
| Year | USMV | VWO |
|---|---|---|
| 2022 | -9.4% | -18.0% |
| 2023 | +10.3% | +9.3% |
| 2024 | +15.7% | +10.6% |
| 2025 | +7.6% | +25.6% |
| 2026 | +9.1% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are USMV and VWO good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.49 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between USMV and VWO?
Using weekly returns as of 2026-08-27: 0.49 over 3 years, with 0.35 over the last year and 0.47 over 5 years.
Is VWO a good diversifier for USMV?
Yes, to a useful degree: a correlation of 0.49 leaves real independence between the two, which historically damped combined volatility.
How much do USMV and VWO overlap?
The two funds share 3 holdings amounting to 0.0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/usmv-vs-vwo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/usmv-vs-vwo/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: USMV correlations · VWO correlations
