VUG vs VYM: Correlation & Overlap
Vanguard Growth ETF (VUG) and Vanguard High Dividend Yield ETF (VYM) show a strong relationship: their 3-year correlation of weekly returns is 0.61. Looking through to holdings, 7.7% 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 VUG and VYM?
On 3 years of weekly data the VUG/VYM correlation comes out at 0.61, strong. The link has loosened recently: the 1-year correlation (0.42) runs below the 3-year figure (0.61). The 5-year figure is 0.66, and annualized covariance runs at 145.5 %².
Within VUG's tracked universe of 103 assets, VYM comes in at #52 by 3-year correlation. Their 12-month results are close: +16.2% for VUG against +21.1% for VYM. On a rolling one-year basis the correlation drifted between 0.34 and 0.84, a moderate band. Note the risk asymmetry: VUG runs 1.6 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 VYM: side by side
| VUG (Vanguard Growth ETF) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +16.2% | +21.1% |
| 5-year return | +78.4% | +76.6% |
| Volatility (ann.) | 19.4% | 12.3% |
| Beta vs S&P 500 | 1.28 | 0.69 |
| Max drawdown (3Y) | -22.8% | -14.5% |
| Dividend yield | 0.40% | 2.24% |
| Expense ratio | 0.03% | 0.04% |
| Assets under management | $372.0B | $99.2B |
| Sector / category | ETF · US Style | ETF · Dividend |
VUG is a Large Growth fund from Vanguard: $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% 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 VUG and VYM
The two portfolios are largely distinct, with 17 holdings in common adding up to 7.7% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in VUG | Weight in VYM |
|---|---|---|
| AVGO | 4.47% | 7.37% |
| ORCL | 0.64% | 0.91% |
| MCD | 0.55% | 0.78% |
| TXN | 0.36% | 1.02% |
| SBUX | 0.35% | 0.49% |
| TRGP | 0.18% | 0.23% |
| FAST | 0.17% | 0.22% |
| BX | 0.15% | 0.39% |
| YUM | 0.14% | 0.17% |
| MSCI | 0.13% | 0.16% |
| RCL | 0.13% | 0.33% |
| ARES | 0.09% | 0.10% |
| APO | 0.09% | 0.21% |
| VRSN | 0.09% | 0.10% |
| LVS | 0.06% | 0.05% |
Largest positions held only by VUG: NVDA (12.84%), AAPL (12.63%), MSFT (9.61%), GOOGL (5.81%), AMZN (5.16%). Only by VYM: JPM (3.83%), XOM (2.63%), JNJ (2.51%), CSCO (1.87%), ABBV (1.81%).
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 | VUG | VYM |
|---|---|---|
| 2022 | -33.2% | -0.4% |
| 2023 | +46.8% | +6.6% |
| 2024 | +32.7% | +17.6% |
| 2025 | +19.4% | +15.4% |
| 2026 | +9.6% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VUG and VYM good diversifiers for each other?
Only partially. A correlation of 0.61 means VUG and VYM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between VUG and VYM?
As of 2026-08-27, the correlation of weekly returns between VUG and VYM is 0.61 over 3 years, 0.42 over 1 year and 0.66 over 5 years.
Is VYM a good diversifier for VUG?
Only partially. A correlation of 0.61 means VUG and VYM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do VUG and VYM overlap?
The two funds share 17 holdings amounting to 7.7% of weight, per issuer portfolio files dated 2026-07-31.
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