VIG vs VYM: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard Dividend Appreciation ETF (VIG) and Vanguard High Dividend Yield ETF (VYM) carry a correlation of 0.94, a very strong link. The two funds also share 60.9% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VIG and VYM?
Over the past 3 years, VIG and VYM moved with a correlation of 0.94, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.92) sits close to the 3-year figure. Over 5 years the correlation is 0.93, and the annualized covariance of weekly returns is 137.0 %².
Within VIG's tracked universe of 106 assets, VYM comes in at #4 by 3-year correlation. Neither side won the trailing year by much: +17.1% against +21.1%. Stability stands out here, with the rolling one-year correlation confined to 0.86 through 0.98.
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 VYM: side by side
| VIG (Vanguard Dividend Appreciation ETF) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +17.1% | +21.1% |
| 5-year return | +64.0% | +76.6% |
| Volatility (ann.) | 11.9% | 12.3% |
| Beta vs S&P 500 | 0.74 | 0.69 |
| Max drawdown (3Y) | -15.0% | -14.5% |
| Dividend yield | 1.50% | 2.24% |
| Expense ratio | 0.04% | 0.04% |
| Assets under management | $130.9B | $99.2B |
| Sector / category | ETF · Dividend | ETF · Dividend |
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. 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 VIG and VYM
The two portfolios overlap heavily: 60.9% of the funds' weight sits in the same underlying holdings (209 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in VIG | Weight in VYM |
|---|---|---|
| AVGO | 4.65% | 7.37% |
| JPM | 4.09% | 3.83% |
| XOM | 2.80% | 2.63% |
| JNJ | 2.68% | 2.51% |
| CSCO | 1.99% | 1.87% |
| ABBV | 1.92% | 1.81% |
| BAC | 1.75% | 1.67% |
| UNH | 1.63% | 1.52% |
| CAT | 1.63% | 1.51% |
| KO | 1.47% | 1.39% |
| PG | 1.46% | 1.37% |
| HD | 1.43% | 1.35% |
| MRK | 1.40% | 1.31% |
| GS | 1.24% | 1.14% |
| TXN | 1.09% | 1.02% |
Largest positions held only by VIG: AAPL (4.47%), MSFT (4.35%), LLY (3.94%), V (2.46%), WMT (2.12%). Only by VYM: CVX (1.49%), PM (1.21%), RTX (1.18%), WFC (1.08%), C (0.89%).
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 | VYM |
|---|---|---|
| 2022 | -9.8% | -0.4% |
| 2023 | +14.5% | +6.6% |
| 2024 | +17.0% | +17.6% |
| 2025 | +14.2% | +15.4% |
| 2026 | +11.6% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VIG and VYM good diversifiers for each other?
Not really. At 0.94, the two trade almost as one position, and owning both buys little extra protection. The 60.9% holdings overlap makes the redundancy concrete: much of it is the same book twice.
FAQ
What is the correlation between VIG and VYM?
The VIG/VYM correlation stands at 0.94 on a 3-year window (1 year: 0.92, 5 years: 0.93), computed from weekly returns as of 2026-08-27.
Is VYM a good diversifier for VIG?
Not really. At 0.94, the two trade almost as one position, and owning both buys little extra protection. The 60.9% holdings overlap makes the redundancy concrete: much of it is the same book twice.
How much do VIG and VYM overlap?
Per the issuers' own portfolio disclosures (2026-07-31), the overlap is 60.9% by weight over 209 common positions.
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