VTV vs VWO: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard Value ETF (VTV) and Vanguard FTSE Emerging Markets ETF (VWO) carry a correlation of 0.60, a strong link. 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 VTV and VWO?
Across a 3-year window, the weekly returns of VTV and VWO correlate at 0.60, strong. The relationship has been stable: the 1-year correlation (0.63) sits close to the 3-year figure. Stretching to 5 years gives 0.56, with an annualized covariance of 109.0 %².
Within VTV's tracked universe of 149 assets, VWO comes in at #77 by 3-year correlation. Twelve-month performance is nearly a tie, at +25.7% for VTV and +21.6% for VWO. On a rolling one-year basis the correlation drifted between 0.38 and 0.80, 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.
VTV vs VWO: side by side
| VTV (Vanguard Value ETF) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +25.7% | +21.6% |
| 5-year return | +79.1% | +38.2% |
| Volatility (ann.) | 11.9% | 15.2% |
| Beta vs S&P 500 | 0.65 | 0.75 |
| Max drawdown (3Y) | -14.5% | -17.4% |
| Dividend yield | 1.86% | 2.36% |
| Expense ratio | 0.03% | 0.06% |
| Assets under management | $256.4B | $162.0B |
| Sector / category | ETF · US Style | ETF · International |
VTV, Vanguard's Large Value fund, carries $256.4B under management, 308 holdings, a 0.03% expense ratio, a 1.86% 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 VTV and VWO
The two portfolios are largely distinct, with 7 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 VTV | Weight in VWO |
|---|---|---|
| HAL | 0.09% | 0.10% |
| TEL | 0.22% | 0.02% |
| EL | 0.08% | 0.02% |
| CCL | 0.13% | 0.01% |
| LULU | 0.01% | 0.01% |
| SRE | 0.22% | 0.01% |
| SPG | 0.26% | 0.00% |
Largest positions held only by VTV: JPM (3.51%), MU (3.46%), BRK.B (2.99%), XOM (2.40%), JNJ (2.30%). 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 7 common positions shown.
Year-by-year returns
| Year | VTV | VWO |
|---|---|---|
| 2022 | -2.1% | -18.0% |
| 2023 | +9.3% | +9.3% |
| 2024 | +16.0% | +10.6% |
| 2025 | +15.3% | +25.6% |
| 2026 | +19.3% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VTV and VWO good diversifiers for each other?
To a limited degree. At 0.60 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 VTV and VWO?
As of 2026-08-27, the correlation of weekly returns between VTV and VWO is 0.60 over 3 years, 0.63 over 1 year and 0.56 over 5 years.
Is VWO a good diversifier for VTV?
To a limited degree. At 0.60 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 VTV and VWO overlap?
Per the issuers' own portfolio disclosures (2026-07-31), the overlap is 0.2% by weight over 7 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vtv-vs-vwo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vtv-vs-vwo/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: VTV correlations · VWO correlations
