VOO vs VWO: Correlation & Overlap
Vanguard S&P 500 ETF (VOO) and Vanguard FTSE Emerging Markets ETF (VWO) show a strong relationship: their 3-year correlation of weekly returns is 0.71. Looking through to holdings, 0.1% 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 VOO and VWO?
On 3 years of weekly data the VOO/VWO correlation comes out at 0.71, strong. The relationship has been stable: the 1-year correlation (0.79) sits close to the 3-year figure. The 5-year figure is 0.65, and annualized covariance runs at 155.4 %².
Within VOO's tracked universe of 124 assets, VWO comes in at #49 by 3-year correlation. Twelve-month performance is nearly a tie, at +20.6% for VOO and +21.6% for VWO. The rolling one-year correlation moved between 0.51 and 0.80 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.
VOO vs VWO: side by side
| VOO (Vanguard S&P 500 ETF) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +20.6% | +21.6% |
| 5-year return | +83.0% | +38.2% |
| Volatility (ann.) | 14.4% | 15.2% |
| Beta vs S&P 500 | 0.99 | 0.75 |
| Max drawdown (3Y) | -18.7% | -17.4% |
| Dividend yield | 1.07% | 2.36% |
| Expense ratio | 0.03% | 0.06% |
| Assets under management | $1,686.9B | $162.0B |
| Sector / category | ETF · US Large Cap | ETF · International |
VOO, Vanguard's Large Blend fund, carries $1,686.9B under management, 503 holdings, a 0.03% expense ratio, a 1.07% 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 VOO and VWO
The two portfolios are largely distinct: 0.1% of the funds' weight sits in the same underlying holdings (10 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in VOO | Weight in VWO |
|---|---|---|
| HAL | 0.04% | 0.10% |
| TEL | 0.09% | 0.02% |
| EL | 0.03% | 0.02% |
| CCL | 0.06% | 0.01% |
| ECL | 0.11% | 0.01% |
| LULU | 0.02% | 0.01% |
| IEX | 0.03% | 0.01% |
| SRE | 0.09% | 0.01% |
| PTC | 0.02% | 0.00% |
| SPG | 0.12% | 0.00% |
Largest positions held only by VOO: NVDA (7.56%), AAPL (7.05%), MSFT (5.37%), AMZN (4.13%), GOOGL (3.25%). 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 10 common positions shown.
Year-by-year returns
| Year | VOO | VWO |
|---|---|---|
| 2022 | -18.2% | -18.0% |
| 2023 | +26.3% | +9.3% |
| 2024 | +25.0% | +10.6% |
| 2025 | +17.8% | +25.6% |
| 2026 | +13.7% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VOO and VWO good diversifiers for each other?
Somewhat, no more. With 0.71 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between VOO and VWO?
Using weekly returns as of 2026-08-27: 0.71 over 3 years, with 0.79 over the last year and 0.65 over 5 years.
Is VWO a good diversifier for VOO?
Somewhat, no more. With 0.71 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do VOO and VWO overlap?
The two funds share 10 holdings amounting to 0.1% of weight, per issuer portfolio files dated 2026-07-31.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/voo-vs-vwo.json
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[](https://www.pairbook.io/pair/voo-vs-vwo/)
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Hubs: VOO correlations · VWO correlations
