ERC vs VLT: Correlation
Allspring Multi-Sector Income Fund (ERC) and Invesco High Income Trust II (VLT) show a strong relationship: their 3-year correlation of weekly returns is 0.77.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ERC and VLT?
Over the past 3 years, ERC and VLT moved with a correlation of 0.77, which is strong. Recent behaviour matches the longer record: 0.67 over 1 year against 0.77 over 3. Over 5 years the correlation is 0.75, and the annualized covariance of weekly returns is 77.8 %².
Few assets follow ERC as closely as VLT, which ranks #1 of 22 tracked partners. On 12-month performance ERC holds a 8.0-point edge, +6.7% against -1.3%.
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.
ERC vs VLT: side by side
| ERC (Allspring Multi-Sector Income Fund) | VLT (Invesco High Income Trust II) | |
|---|---|---|
| 1-year return | +6.7% | -1.3% |
| 5-year return | +11.4% | +12.4% |
| Volatility (ann.) | 10.1% | 10.0% |
| Beta vs S&P 500 | 0.41 | 0.47 |
| Max drawdown (3Y) | -9.8% | -13.4% |
| Market cap | $0.3B | – |
| P/E (trailing) | 9.7 | 13.9 |
| Dividend yield | 9.33% | 11.52% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ERC | VLT |
|---|---|---|
| 2022 | -17.8% | -20.9% |
| 2023 | +4.9% | +13.1% |
| 2024 | +6.1% | +17.3% |
| 2025 | +11.1% | +13.2% |
| 2026 | +5.8% | -4.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ERC and VLT good diversifiers for each other?
Somewhat, no more. With 0.77 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ERC and VLT?
Using weekly returns as of 2026-08-27: 0.77 over 3 years, with 0.67 over the last year and 0.75 over 5 years.
Is VLT a good diversifier for ERC?
Somewhat, no more. With 0.77 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.77 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/erc-vs-vlt.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/erc-vs-vlt/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ERC correlations · VLT correlations
