FMY vs LQD: Correlation
Measured on weekly returns over the past three years, First Trust Mortgage Income Fund (FMY) and iShares iBoxx Investment Grade Corporate Bond ETF (LQD) carry a correlation of 0.43, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FMY and LQD?
On 3 years of weekly data the FMY/LQD correlation comes out at 0.43, moderate. Little has changed lately, as the 1-year reading of 0.51 lands near the 3-year figure. The 5-year figure is 0.43, and annualized covariance runs at 30.4 %².
LQD is one of the assets that tracks FMY most closely: it ranks #2 out of the 12 assets we track against FMY. Twelve-month performance is nearly a tie, at +2.3% for FMY and +1.5% for LQD.
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.
FMY vs LQD: side by side
| FMY (First Trust Mortgage Income Fund) | LQD (iShares iBoxx Investment Grade Corporate Bond ETF) | |
|---|---|---|
| 1-year return | +2.3% | +1.5% |
| 5-year return | +18.1% | -4.1% |
| Volatility (ann.) | 9.6% | 7.3% |
| Beta vs S&P 500 | 0.12 | 0.15 |
| Max drawdown (3Y) | -7.1% | -6.7% |
| Market cap | – | – |
| P/E (trailing) | 16.5 | – |
| Dividend yield | 6.94% | 4.66% |
| Expense ratio | – | 0.14% |
| Assets under management | – | $33.0B |
| Sector / category | US Listed | ETF · Bonds |
LQD, iShares's Corporate Bond fund, carries $33.0B under management, a 0.14% expense ratio, a 4.66% trailing dividend yield.
Year-by-year returns
| Year | FMY | LQD |
|---|---|---|
| 2022 | -13.0% | -17.9% |
| 2023 | +16.1% | +9.4% |
| 2024 | +7.1% | +0.9% |
| 2025 | +8.6% | +7.9% |
| 2026 | +0.1% | -0.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FMY and LQD good diversifiers for each other?
Reasonably. At 0.43, FMY and LQD keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between FMY and LQD?
Using weekly returns as of 2026-08-27: 0.43 over 3 years, with 0.51 over the last year and 0.43 over 5 years.
Is LQD a good diversifier for FMY?
Reasonably. At 0.43, FMY and LQD keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.43 mean?
On the −1 to +1 scale, 0.43 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/fmy-vs-lqd.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/fmy-vs-lqd/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: FMY correlations · LQD correlations
