VT vs VWO: Correlation & Overlap
Vanguard Total World Stock ETF (VT) and Vanguard FTSE Emerging Markets ETF (VWO) show a very strong relationship: their 3-year correlation of weekly returns is 0.83. Looking through to holdings, 8.7% 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 VT and VWO?
Over the past 3 years, VT and VWO moved with a correlation of 0.83, which is very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.91 lands near the 3-year figure. Over 5 years the correlation is 0.78, and the annualized covariance of weekly returns is 174.1 %².
Within VT's tracked universe of 136 assets, VWO comes in at #36 by 3-year correlation. Their 12-month results are close: +22.7% for VT against +21.6% for VWO. Stability stands out here, with the rolling one-year correlation confined to 0.68 through 0.92.
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.
VT vs VWO: side by side
| VT (Vanguard Total World Stock ETF) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +22.7% | +21.6% |
| 5-year return | +67.7% | +38.2% |
| Volatility (ann.) | 13.9% | 15.2% |
| Beta vs S&P 500 | 0.92 | 0.75 |
| Max drawdown (3Y) | -16.5% | -17.4% |
| Dividend yield | 1.59% | 2.36% |
| Expense ratio | 0.06% | 0.06% |
| Assets under management | $97.9B | $162.0B |
| Sector / category | ETF · Global | ETF · International |
On the fund side, VT sits in the Global Large-Stock Blend category at Vanguard, with $97.9B under management, 5308 holdings, a 0.06% expense ratio, a 1.59% 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 VT and VWO
The two portfolios are largely distinct. Weighing the shared positions, 8.7% of the two funds is identical, spread across 1461 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in VT | Weight in VWO |
|---|---|---|
| 2330 | 1.61% | 18.65% |
| 700 | 0.34% | 3.97% |
| 9988 | 0.25% | 2.90% |
| 2454 | 0.14% | 1.62% |
| 939 | 0.09% | 1.07% |
| 2308 | 0.08% | 0.99% |
| 2317 | 0.08% | 0.97% |
| 1398 | 0.07% | 0.80% |
| PDD | 0.06% | 0.71% |
| 1211 | 0.06% | 0.68% |
| 3690 | 0.06% | 0.67% |
| 1810 | 0.06% | 0.66% |
| 3711 | 0.05% | 0.59% |
| VALE3 | 0.05% | 0.55% |
| 7203 | 0.18% | 0.05% |
Largest positions held only by VT: NVDA (4.20%), AAPL (4.00%), MSFT (3.09%), AMZN (2.36%), GOOGL (1.89%). Only by VWO: BBL-R (0.02%), SBS (0.02%), TSM (0.02%), TRUE-R (0.02%), YUMC (0.02%).
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 | VT | VWO |
|---|---|---|
| 2022 | -18.0% | -18.0% |
| 2023 | +22.0% | +9.3% |
| 2024 | +16.5% | +10.6% |
| 2025 | +22.4% | +25.6% |
| 2026 | +15.2% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VT and VWO good diversifiers for each other?
Not really. At 0.83, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between VT and VWO?
The VT/VWO correlation stands at 0.83 on a 3-year window (1 year: 0.91, 5 years: 0.78), computed from weekly returns as of 2026-08-27.
Is VWO a good diversifier for VT?
Not really. At 0.83, the two trade almost as one position, and owning both buys little extra protection.
How much do VT and VWO overlap?
Per the issuers' own portfolio disclosures (2026-07-31), the overlap is 8.7% by weight over 1461 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vt-vs-vwo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vt-vs-vwo/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: VT correlations · VWO correlations
