FTF vs VLT: Correlation
Measured on weekly returns over the past three years, Franklin Limited Duration Income Trust (FTF) and Invesco High Income Trust II (VLT) carry a correlation of 0.73, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FTF and VLT?
On 3 years of weekly data the FTF/VLT correlation comes out at 0.73, strong. The relationship has been stable: the 1-year correlation (0.72) sits close to the 3-year figure. The 5-year figure is 0.72, and annualized covariance runs at 67.1 %².
VLT is one of the assets that tracks FTF most closely: it ranks #2 out of the 12 assets we track against FTF. Their 12-month results are close: +1.5% for FTF against -1.3% for VLT.
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.
FTF vs VLT: side by side
| FTF (Franklin Limited Duration Income Trust) | VLT (Invesco High Income Trust II) | |
|---|---|---|
| 1-year return | +1.5% | -1.3% |
| 5-year return | +10.3% | +12.4% |
| Volatility (ann.) | 9.2% | 10.0% |
| Beta vs S&P 500 | 0.34 | 0.47 |
| Max drawdown (3Y) | -11.6% | -13.4% |
| Market cap | – | – |
| P/E (trailing) | 13.7 | 13.9 |
| Dividend yield | 12.75% | 11.52% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | FTF | VLT |
|---|---|---|
| 2022 | -23.5% | -20.9% |
| 2023 | +12.2% | +13.1% |
| 2024 | +19.6% | +17.3% |
| 2025 | +4.3% | +13.2% |
| 2026 | +1.8% | -4.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FTF and VLT good diversifiers for each other?
Only partially. A correlation of 0.73 means FTF and VLT 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 FTF and VLT?
Using weekly returns as of 2026-08-27: 0.73 over 3 years, with 0.72 over the last year and 0.72 over 5 years.
Is VLT a good diversifier for FTF?
Only partially. A correlation of 0.73 means FTF and VLT share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.73 mean?
On the −1 to +1 scale, 0.73 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/ftf-vs-vlt.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ftf-vs-vlt/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: FTF correlations · VLT correlations
