VTI vs VWO: Correlation & Overlap
Vanguard Total Stock Market ETF (VTI) 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, 0.2% 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 VTI and VWO?
On 3 years of weekly data the VTI/VWO correlation comes out at 0.71, strong. The relationship has been stable: the 1-year correlation (0.80) sits close to the 3-year figure. The 5-year figure is 0.66, and annualized covariance runs at 158.1 %².
Among the 157 assets we track against VTI, VWO ranks #49 by 3-year correlation. Twelve-month performance is nearly a tie, at +20.7% for VTI and +21.6% for VWO. On a rolling one-year basis the correlation drifted between 0.52 and 0.81, a moderate band.
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.
VTI vs VWO: side by side
| VTI (Vanguard Total Stock Market ETF) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +20.7% | +21.6% |
| 5-year return | +74.8% | +38.2% |
| Volatility (ann.) | 14.6% | 15.2% |
| Beta vs S&P 500 | 1.01 | 0.75 |
| Max drawdown (3Y) | -19.3% | -17.4% |
| Dividend yield | 1.06% | 2.36% |
| Expense ratio | 0.03% | 0.06% |
| Assets under management | $2,290.0B | $162.0B |
| Sector / category | ETF · US Large Cap | ETF · International |
VTI, Vanguard's Large Blend fund, carries $2,290.0B under management, 3140 holdings, a 0.03% expense ratio, a 1.06% 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 VTI and VWO
The two portfolios are largely distinct, with 40 holdings in common adding up to 0.2% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in VTI | Weight in VWO |
|---|---|---|
| HAL | 0.03% | 0.10% |
| TEL | 0.08% | 0.02% |
| EL | 0.03% | 0.02% |
| MOH | 0.01% | 0.04% |
| TRU | 0.02% | 0.01% |
| CCL | 0.05% | 0.01% |
| ECL | 0.10% | 0.01% |
| LULU | 0.02% | 0.01% |
| OUT | 0.01% | 0.05% |
| MTN | 0.01% | 0.22% |
| M | 0.01% | 0.01% |
| SLM | 0.01% | 0.09% |
| IEX | 0.02% | 0.01% |
| MTH | 0.01% | 0.01% |
| VAL | 0.01% | 0.21% |
Largest positions held only by VTI: NVDA (6.42%), AAPL (6.31%), MSFT (4.80%), AMZN (3.66%), GOOGL (2.91%). 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 15 common positions shown.
Year-by-year returns
| Year | VTI | VWO |
|---|---|---|
| 2022 | -19.5% | -18.0% |
| 2023 | +26.0% | +9.3% |
| 2024 | +23.8% | +10.6% |
| 2025 | +17.1% | +25.6% |
| 2026 | +14.2% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VTI and VWO good diversifiers for each other?
To a limited degree. At 0.71 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between VTI and VWO?
As of 2026-08-27, the correlation of weekly returns between VTI and VWO is 0.71 over 3 years, 0.80 over 1 year and 0.66 over 5 years.
Is VWO a good diversifier for VTI?
To a limited degree. At 0.71 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do VTI and VWO overlap?
Per the issuers' own portfolio disclosures (2026-07-31), the overlap is 0.2% by weight over 40 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vti-vs-vwo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vti-vs-vwo/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: VTI correlations · VWO correlations
