AGG vs FMY: Correlation
iShares Core US Aggregate Bond ETF (AGG) and First Trust Mortgage Income Fund (FMY) show a moderate relationship: their 3-year correlation of weekly returns is 0.41.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AGG and FMY?
Over the past 3 years, AGG and FMY moved with a correlation of 0.41, which is moderate. The relationship has been stable: the 1-year correlation (0.50) sits close to the 3-year figure. Over 5 years the correlation is 0.39, and the annualized covariance of weekly returns is 21.2 %².
Among the 34 assets we track against AGG, FMY ranks #20 by 3-year correlation. Neither side won the trailing year by much: +2.3% against +2.3%. One caveat on sizing: FMY is 1.8 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
AGG vs FMY: side by side
| AGG (iShares Core US Aggregate Bond ETF) | FMY (First Trust Mortgage Income Fund) | |
|---|---|---|
| 1-year return | +2.3% | +2.3% |
| 5-year return | -1.1% | +18.1% |
| Volatility (ann.) | 5.3% | 9.6% |
| Beta vs S&P 500 | 0.07 | 0.12 |
| Max drawdown (3Y) | -4.8% | -7.1% |
| Market cap | – | – |
| P/E (trailing) | – | 16.5 |
| Dividend yield | 4.05% | 6.94% |
| Expense ratio | 0.03% | – |
| Assets under management | $137.1B | – |
| Sector / category | ETF · Bonds | US Listed |
AGG is an Intermediate Core Bond fund from iShares: $137.1B under management, a 0.03% expense ratio, a 4.05% trailing dividend yield.
Year-by-year returns
| Year | AGG | FMY |
|---|---|---|
| 2022 | -13.0% | -13.0% |
| 2023 | +5.7% | +16.1% |
| 2024 | +1.3% | +7.1% |
| 2025 | +7.2% | +8.6% |
| 2026 | +0.3% | +0.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AGG and FMY good diversifiers for each other?
Reasonably. At 0.41, AGG and FMY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between AGG and FMY?
As of 2026-08-27, the correlation of weekly returns between AGG and FMY is 0.41 over 3 years, 0.50 over 1 year and 0.39 over 5 years.
Is FMY a good diversifier for AGG?
Reasonably. At 0.41, AGG and FMY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.41 mean?
On the −1 to +1 scale, 0.41 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: AGG correlations · FMY correlations
