VT vs VYM: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard Total World Stock ETF (VT) and Vanguard High Dividend Yield ETF (VYM) carry a correlation of 0.84, a very strong link. Looking through to holdings, 22.7% 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 VYM?
Over the past 3 years, VT and VYM moved with a correlation of 0.84, which is very strong, meaning they move nearly in lockstep. The link has loosened recently: the 1-year correlation (0.73) runs below the 3-year figure (0.84). Over 5 years the correlation is 0.85, and the annualized covariance of weekly returns is 143.4 %².
Among the 136 assets we track against VT, VYM ranks #34 by 3-year correlation. Neither side won the trailing year by much: +22.7% against +21.1%. Stability stands out here, with the rolling one-year correlation confined to 0.73 through 0.93.
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 VYM: side by side
| VT (Vanguard Total World Stock ETF) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +22.7% | +21.1% |
| 5-year return | +67.7% | +76.6% |
| Volatility (ann.) | 13.9% | 12.3% |
| Beta vs S&P 500 | 0.92 | 0.69 |
| Max drawdown (3Y) | -16.5% | -14.5% |
| Dividend yield | 1.59% | 2.24% |
| Expense ratio | 0.06% | 0.04% |
| Assets under management | $97.9B | $99.2B |
| Sector / category | ETF · Global | ETF · Dividend |
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. 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 VT and VYM
The two portfolios partially overlap, with 599 holdings in common adding up to 22.7% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in VT | Weight in VYM |
|---|---|---|
| AVGO | 1.62% | 7.37% |
| JPM | 0.84% | 3.83% |
| XOM | 0.58% | 2.63% |
| JNJ | 0.55% | 2.51% |
| CSCO | 0.41% | 1.87% |
| ABBV | 0.40% | 1.81% |
| BAC | 0.36% | 1.67% |
| UNH | 0.34% | 1.52% |
| CAT | 0.33% | 1.51% |
| CVX | 0.33% | 1.49% |
| MRK | 0.31% | 1.31% |
| KO | 0.30% | 1.39% |
| PG | 0.30% | 1.37% |
| HD | 0.30% | 1.35% |
| PM | 0.27% | 1.21% |
Largest positions held only by VT: NVDA (4.20%), AAPL (4.00%), MSFT (3.09%), AMZN (2.36%), GOOGL (1.89%). Only by VYM: TFSL (0.00%), AMBP (0.00%), NAVI (0.00%), LEN.B (0.00%), AGNT (0.00%).
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 | VYM |
|---|---|---|
| 2022 | -18.0% | -0.4% |
| 2023 | +22.0% | +6.6% |
| 2024 | +16.5% | +17.6% |
| 2025 | +22.4% | +15.4% |
| 2026 | +15.2% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VT and VYM good diversifiers for each other?
Not really. At 0.84, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between VT and VYM?
As of 2026-08-27, the correlation of weekly returns between VT and VYM is 0.84 over 3 years, 0.73 over 1 year and 0.85 over 5 years.
Is VYM a good diversifier for VT?
Not really. At 0.84, the two trade almost as one position, and owning both buys little extra protection.
How much do VT and VYM overlap?
The two funds share 599 holdings amounting to 22.7% of weight, per issuer portfolio files dated 2026-07-31.
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