USMV vs VYM: Correlation & Overlap
iShares MSCI USA Min Vol Factor ETF (USMV) and Vanguard High Dividend Yield ETF (VYM) show a very strong relationship: their 3-year correlation of weekly returns is 0.83. The two funds also share 29.3% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are USMV and VYM?
Across a 3-year window, the weekly returns of USMV and VYM correlate at 0.83, very strong, meaning they move nearly in lockstep. The link has loosened recently: the 1-year correlation (0.61) runs below the 3-year figure (0.83). Stretching to 5 years gives 0.85, with an annualized covariance of 101.1 %².
Within USMV's tracked universe of 125 assets, VYM comes in at #7 by 3-year correlation. On 12-month performance VYM holds a 11.0-point edge, +10.1% against +21.1%. The rolling one-year correlation moved between 0.63 and 0.92 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.
USMV vs VYM: side by side
| USMV (iShares MSCI USA Min Vol Factor ETF) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +10.1% | +21.1% |
| 5-year return | +42.3% | +76.6% |
| Volatility (ann.) | 9.9% | 12.3% |
| Beta vs S&P 500 | 0.51 | 0.69 |
| Max drawdown (3Y) | -9.4% | -14.5% |
| Dividend yield | 1.48% | 2.24% |
| Expense ratio | 0.15% | 0.04% |
| Assets under management | $23.6B | $99.2B |
| Sector / category | ETF · US Style | ETF · Dividend |
USMV, iShares's Large Blend fund, carries $23.6B under management, 164 holdings, a 0.15% expense ratio, a 1.48% trailing dividend yield. VYM, Vanguard's Large Value fund, carries $99.2B under management, 604 holdings, a 0.04% expense ratio, a 2.24% trailing dividend yield.
Portfolio overlap between USMV and VYM
The two portfolios partially overlap: 29.3% of the funds' weight sits in the same underlying holdings (73 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in USMV | Weight in VYM |
|---|---|---|
| JNJ | 1.58% | 2.51% |
| CSCO | 1.38% | 1.87% |
| XOM | 1.38% | 2.63% |
| MRK | 1.54% | 1.31% |
| KO | 1.28% | 1.39% |
| PG | 1.02% | 1.37% |
| AVGO | 0.90% | 7.37% |
| IBM | 1.03% | 0.86% |
| VZ | 1.46% | 0.80% |
| MCD | 1.06% | 0.78% |
| PEP | 0.85% | 0.78% |
| ABT | 0.78% | 0.75% |
| ABBV | 0.73% | 1.81% |
| TXN | 0.68% | 1.02% |
| GILD | 0.87% | 0.66% |
Largest positions held only by USMV: MSFT (1.68%), VRTX (1.63%), WELL (1.57%), APH (1.54%), MSI (1.51%). Only by VYM: JPM (3.83%), BAC (1.67%), CAT (1.51%), GS (1.14%), WFC (1.08%).
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 | VYM |
|---|---|---|
| 2022 | -9.4% | -0.4% |
| 2023 | +10.3% | +6.6% |
| 2024 | +15.7% | +17.6% |
| 2025 | +7.6% | +15.4% |
| 2026 | +9.1% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are USMV and VYM good diversifiers for each other?
No. With a correlation of 0.83, USMV and VYM move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between USMV and VYM?
The USMV/VYM correlation stands at 0.83 on a 3-year window (1 year: 0.61, 5 years: 0.85), computed from weekly returns as of 2026-08-27.
Is VYM a good diversifier for USMV?
No. With a correlation of 0.83, USMV and VYM move nearly in lockstep, so holding both adds very little diversification.
How much do USMV and VYM overlap?
The two funds share 73 holdings amounting to 29.3% of weight, per issuer portfolio files dated 2026-08-26.
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