FNGD vs VGM: Correlation
MicroSectors FANG Index -3X Inverse Leveraged ETNs due (FNGD) and Invesco Trust for Investment Grade Municipals (VGM) show a negative relationship: their 3-year correlation of weekly returns is -0.27.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FNGD and VGM?
Across a 3-year window, the weekly returns of FNGD and VGM correlate at -0.27, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.55 versus -0.27 over 3 years. Stretching to 5 years gives -0.36, with an annualized covariance of -247.2 %².
Within FNGD's tracked universe of 1743 assets, VGM comes in at #644 by 3-year correlation. Correlation aside, the last 12 months split them widely, with VGM ahead by 73.0 points (-55.7% versus +17.3%). Risk is not evenly split, since FNGD carries 6.2 times the volatility of the other side.
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.
FNGD vs VGM: side by side
| FNGD (MicroSectors FANG Index -3X Inverse Leveraged ETNs due) | VGM (Invesco Trust for Investment Grade Municipals) | |
|---|---|---|
| 1-year return | -55.7% | +17.3% |
| 5-year return | -99.4% | -0.8% |
| Volatility (ann.) | 75.7% | 12.2% |
| Beta vs S&P 500 | -4.54 | 0.30 |
| Max drawdown (3Y) | -97.6% | -11.5% |
| Market cap | – | $0.6B |
| P/E (trailing) | 20.6 | 33.5 |
| Dividend yield | 0.00% | 7.51% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | FNGD | VGM |
|---|---|---|
| 2022 | +52.2% | -24.2% |
| 2023 | -90.1% | +3.0% |
| 2024 | -76.6% | +8.8% |
| 2025 | -61.4% | +11.1% |
| 2026 | -49.5% | +5.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FNGD and VGM good diversifiers for each other?
Yes. With a correlation of -0.27, FNGD and VGM have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between FNGD and VGM?
The FNGD/VGM correlation stands at -0.27 on a 3-year window (1 year: -0.55, 5 years: -0.36), computed from weekly returns as of 2026-08-27.
Is VGM a good diversifier for FNGD?
Yes. With a correlation of -0.27, FNGD and VGM have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.27 mean?
A reading of -0.27 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: FNGD correlations · VGM correlations
