VIG vs VUG: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard Dividend Appreciation ETF (VIG) and Vanguard Growth ETF (VUG) carry a correlation of 0.77, a strong link. Looking through to holdings, 26.9% 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 VIG and VUG?
Across a 3-year window, the weekly returns of VIG and VUG correlate at 0.77, strong. Lately the two have drifted apart, with the 1-year correlation at 0.61 versus 0.77 over 3 years. Stretching to 5 years gives 0.82, with an annualized covariance of 176.3 %².
Among the 106 assets we track against VIG, VUG ranks #22 by 3-year correlation. Neither side won the trailing year by much: +17.1% against +16.2%. Across three years, the rolling one-year figure varied moderately, from 0.61 to 0.89. One caveat on sizing: VUG is 1.6 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.
VIG vs VUG: side by side
| VIG (Vanguard Dividend Appreciation ETF) | VUG (Vanguard Growth ETF) | |
|---|---|---|
| 1-year return | +17.1% | +16.2% |
| 5-year return | +64.0% | +78.4% |
| Volatility (ann.) | 11.9% | 19.4% |
| Beta vs S&P 500 | 0.74 | 1.28 |
| Max drawdown (3Y) | -15.0% | -22.8% |
| Dividend yield | 1.50% | 0.40% |
| Expense ratio | 0.04% | 0.03% |
| Assets under management | $130.9B | $372.0B |
| Sector / category | ETF · Dividend | ETF · US Style |
VIG, Vanguard's Large Blend fund, carries $130.9B under management, 333 holdings, a 0.04% expense ratio, a 1.50% 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 VIG and VUG
The two portfolios partially overlap. Weighing the shared positions, 26.9% of the two funds is identical, spread across 33 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in VIG | Weight in VUG |
|---|---|---|
| AVGO | 4.65% | 4.47% |
| AAPL | 4.47% | 12.63% |
| MSFT | 4.35% | 9.61% |
| LLY | 3.94% | 2.72% |
| V | 2.46% | 1.66% |
| MA | 2.01% | 1.28% |
| COST | 1.83% | 1.19% |
| LRCX | 1.59% | 1.03% |
| KLAC | 1.04% | 0.68% |
| ORCL | 0.96% | 0.64% |
| APH | 0.86% | 0.57% |
| MCD | 0.83% | 0.55% |
| TXN | 1.09% | 0.36% |
| SBUX | 0.52% | 0.35% |
| MSI | 0.31% | 0.22% |
Largest positions held only by VIG: JPM (4.09%), XOM (2.80%), JNJ (2.68%), WMT (2.12%), CSCO (1.99%). Only by VUG: NVDA (12.84%), GOOGL (5.81%), AMZN (5.16%), GOOG (4.64%), META (3.41%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-07-31. Top 15 common positions shown.
Year-by-year returns
| Year | VIG | VUG |
|---|---|---|
| 2022 | -9.8% | -33.2% |
| 2023 | +14.5% | +46.8% |
| 2024 | +17.0% | +32.7% |
| 2025 | +14.2% | +19.4% |
| 2026 | +11.6% | +9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VIG and VUG good diversifiers for each other?
To a limited degree. At 0.77 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 VIG and VUG?
The VIG/VUG correlation stands at 0.77 on a 3-year window (1 year: 0.61, 5 years: 0.82), computed from weekly returns as of 2026-08-27.
Is VUG a good diversifier for VIG?
To a limited degree. At 0.77 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 VIG and VUG overlap?
The two funds share 33 holdings amounting to 26.9% of weight, per issuer portfolio files dated 2026-07-31.
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Related comparisons
Hubs: VIG correlations · VUG correlations
