VUG vs VWO: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard Growth ETF (VUG) and Vanguard FTSE Emerging Markets ETF (VWO) carry a correlation of 0.65, a strong link. The two funds also share 0.0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VUG and VWO?
Across a 3-year window, the weekly returns of VUG and VWO correlate at 0.65, strong. The relationship has been stable: the 1-year correlation (0.67) sits close to the 3-year figure. Stretching to 5 years gives 0.62, with an annualized covariance of 192.3 %².
Within VUG's tracked universe of 103 assets, VWO comes in at #36 by 3-year correlation. Over the last 12 months VWO came out ahead by 5.4 percentage points (+16.2% against +21.6%). The rolling one-year correlation moved between 0.46 and 0.74 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.
VUG vs VWO: side by side
| VUG (Vanguard Growth ETF) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +16.2% | +21.6% |
| 5-year return | +78.4% | +38.2% |
| Volatility (ann.) | 19.4% | 15.2% |
| Beta vs S&P 500 | 1.28 | 0.75 |
| Max drawdown (3Y) | -22.8% | -17.4% |
| Dividend yield | 0.40% | 2.36% |
| Expense ratio | 0.03% | 0.06% |
| Assets under management | $372.0B | $162.0B |
| Sector / category | ETF · US Style | ETF · International |
On the fund side, VUG sits in the Large Growth category at Vanguard, with $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% 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 VUG and VWO
The two portfolios are largely distinct: 0.0% of the funds' weight sits in the same underlying holdings (2 common positions). Correlation tells you they move together; overlap tells you why.
Largest positions held only by VUG: NVDA (12.84%), AAPL (12.63%), MSFT (9.61%), GOOGL (5.81%), AMZN (5.16%). 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 2 common positions shown.
Year-by-year returns
| Year | VUG | VWO |
|---|---|---|
| 2022 | -33.2% | -18.0% |
| 2023 | +46.8% | +9.3% |
| 2024 | +32.7% | +10.6% |
| 2025 | +19.4% | +25.6% |
| 2026 | +9.6% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VUG and VWO good diversifiers for each other?
To a limited degree. At 0.65 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 VUG and VWO?
Using weekly returns as of 2026-08-27: 0.65 over 3 years, with 0.67 over the last year and 0.62 over 5 years.
Is VWO a good diversifier for VUG?
To a limited degree. At 0.65 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 VUG and VWO overlap?
The two funds share 2 holdings amounting to 0.0% of weight, per issuer portfolio files dated 2026-07-31.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vug-vs-vwo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vug-vs-vwo/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: VUG correlations · VWO correlations
