VIG vs VWO: Correlation & Overlap
How closely do Vanguard Dividend Appreciation ETF (VIG) and Vanguard FTSE Emerging Markets ETF (VWO) trade together? Their weekly returns over three years give a correlation of 0.64, which is strong. The two funds also share 0.1% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VIG and VWO?
On 3 years of weekly data the VIG/VWO correlation comes out at 0.64, strong. Recent behaviour matches the longer record: 0.69 over 1 year against 0.64 over 3. The 5-year figure is 0.59, and annualized covariance runs at 115.6 %².
Within VIG's tracked universe of 106 assets, VWO comes in at #45 by 3-year correlation. Twelve-month performance is nearly a tie, at +17.1% for VIG and +21.6% for VWO. Across three years, the rolling one-year figure varied moderately, from 0.43 to 0.80.
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 VWO: side by side
| VIG (Vanguard Dividend Appreciation ETF) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +17.1% | +21.6% |
| 5-year return | +64.0% | +38.2% |
| Volatility (ann.) | 11.9% | 15.2% |
| Beta vs S&P 500 | 0.74 | 0.75 |
| Max drawdown (3Y) | -15.0% | -17.4% |
| Dividend yield | 1.50% | 2.36% |
| Expense ratio | 0.04% | 0.06% |
| Assets under management | $130.9B | $162.0B |
| Sector / category | ETF · Dividend | ETF · International |
On the fund side, VIG sits in the Large Blend category at Vanguard, with $130.9B under management, 333 holdings, a 0.04% expense ratio, a 1.50% 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 VIG and VWO
The two portfolios are largely distinct. Weighing the shared positions, 0.1% of the two funds is identical, spread across 7 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in VIG | Weight in VWO |
|---|---|---|
| TEL | 0.26% | 0.02% |
| HTO | 0.01% | 0.04% |
| ECL | 0.31% | 0.01% |
| IEX | 0.07% | 0.01% |
| SRE | 0.25% | 0.01% |
| SCI | 0.05% | 0.01% |
| RBA | 0.09% | 0.00% |
Largest positions held only by VIG: AVGO (4.65%), AAPL (4.47%), MSFT (4.35%), JPM (4.09%), LLY (3.94%). 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 2026-07-31. Top 7 common positions shown.
Year-by-year returns
| Year | VIG | VWO |
|---|---|---|
| 2022 | -9.8% | -18.0% |
| 2023 | +14.5% | +9.3% |
| 2024 | +17.0% | +10.6% |
| 2025 | +14.2% | +25.6% |
| 2026 | +11.6% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VIG and VWO good diversifiers for each other?
Only partially. A correlation of 0.64 means VIG and VWO 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 VIG and VWO?
The VIG/VWO correlation stands at 0.64 on a 3-year window (1 year: 0.69, 5 years: 0.59), computed from weekly returns as of 2026-08-27.
Is VWO a good diversifier for VIG?
Only partially. A correlation of 0.64 means VIG and VWO share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do VIG and VWO overlap?
Per the issuers' own portfolio disclosures (2026-07-31), the overlap is 0.1% by weight over 7 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vig-vs-vwo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vig-vs-vwo/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: VIG correlations · VWO correlations
