VTI vs VYM: Correlation & Overlap
Vanguard Total Stock Market ETF (VTI) and Vanguard High Dividend Yield ETF (VYM) show a very strong relationship: their 3-year correlation of weekly returns is 0.83. The two funds also share 33.9% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VTI and VYM?
On 3 years of weekly data the VTI/VYM correlation comes out at 0.83, very strong, meaning they move nearly in lockstep. The link has loosened recently: the 1-year correlation (0.69) runs below the 3-year figure (0.83). The 5-year figure is 0.86, and annualized covariance runs at 149.6 %².
By 3-year correlation, VYM places #34 of the 157 assets tracked against VTI. Their 12-month results are close: +20.7% for VTI against +21.1% for VYM. The rolling one-year correlation moved between 0.68 and 0.94 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.
VTI vs VYM: side by side
| VTI (Vanguard Total Stock Market ETF) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +20.7% | +21.1% |
| 5-year return | +74.8% | +76.6% |
| Volatility (ann.) | 14.6% | 12.3% |
| Beta vs S&P 500 | 1.01 | 0.69 |
| Max drawdown (3Y) | -19.3% | -14.5% |
| Dividend yield | 1.06% | 2.24% |
| Expense ratio | 0.03% | 0.04% |
| Assets under management | $2,290.0B | $99.2B |
| Sector / category | ETF · US Large Cap | ETF · Dividend |
On the fund side, VTI sits in the Large Blend category at Vanguard, with $2,290.0B under management, 3140 holdings, a 0.03% expense ratio, a 1.06% 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 VTI and VYM
The two portfolios partially overlap. Weighing the shared positions, 33.9% of the two funds is identical, spread across 581 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in VTI | Weight in VYM |
|---|---|---|
| AVGO | 2.56% | 7.37% |
| JPM | 1.31% | 3.83% |
| XOM | 0.90% | 2.63% |
| JNJ | 0.86% | 2.51% |
| ABBV | 0.62% | 1.81% |
| CSCO | 0.57% | 1.87% |
| BAC | 0.55% | 1.67% |
| UNH | 0.52% | 1.52% |
| CAT | 0.52% | 1.51% |
| CVX | 0.52% | 1.49% |
| PG | 0.47% | 1.37% |
| HD | 0.46% | 1.35% |
| MRK | 0.45% | 1.31% |
| KO | 0.42% | 1.39% |
| PM | 0.41% | 1.21% |
Largest positions held only by VTI: NVDA (6.42%), AAPL (6.31%), MSFT (4.80%), AMZN (3.66%), GOOGL (2.91%). Only by VYM: NXPI (0.24%), BAP (0.11%), RPRX (0.10%), AMCR (0.08%), SCCO (0.07%).
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 | VYM |
|---|---|---|
| 2022 | -19.5% | -0.4% |
| 2023 | +26.0% | +6.6% |
| 2024 | +23.8% | +17.6% |
| 2025 | +17.1% | +15.4% |
| 2026 | +14.2% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VTI and VYM good diversifiers for each other?
No: a correlation of 0.83 means VTI and VYM tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between VTI and VYM?
As of 2026-08-27, the correlation of weekly returns between VTI and VYM is 0.83 over 3 years, 0.69 over 1 year and 0.86 over 5 years.
Is VYM a good diversifier for VTI?
No: a correlation of 0.83 means VTI and VYM tend to fall together, which is precisely when diversification is supposed to help.
How much do VTI and VYM overlap?
The two funds share 581 holdings amounting to 33.9% of weight, per issuer portfolio files dated 2026-07-31.
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