HYG vs VLT: Correlation
Measured on weekly returns over the past three years, iShares iBoxx High Yield Corporate Bond ETF (HYG) and Invesco High Income Trust II (VLT) carry a correlation of 0.74, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HYG and VLT?
Across a 3-year window, the weekly returns of HYG and VLT correlate at 0.74, strong. The link has loosened recently: the 1-year correlation (0.60) runs below the 3-year figure (0.74). Stretching to 5 years gives 0.76, with an annualized covariance of 34.7 %².
Among the 46 assets we track against HYG, VLT ranks #10 by 3-year correlation. The trailing year gives HYG the advantage: +4.6% versus -1.3%, a 5.9-point spread. Risk is not evenly split, since VLT carries 2.1 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.
HYG vs VLT: side by side
| HYG (iShares iBoxx High Yield Corporate Bond ETF) | VLT (Invesco High Income Trust II) | |
|---|---|---|
| 1-year return | +4.6% | -1.3% |
| 5-year return | +19.9% | +12.4% |
| Volatility (ann.) | 4.7% | 10.0% |
| Beta vs S&P 500 | 0.22 | 0.47 |
| Max drawdown (3Y) | -4.6% | -13.4% |
| Market cap | – | – |
| P/E (trailing) | – | 13.9 |
| Dividend yield | 5.94% | 11.52% |
| Expense ratio | 0.49% | – |
| Assets under management | $17.1B | – |
| Sector / category | ETF · Bonds | US Listed |
On the fund side, HYG sits in the High Yield Bond category at iShares, with $17.1B under management, a 0.49% expense ratio, a 5.94% trailing dividend yield.
Year-by-year returns
| Year | HYG | VLT |
|---|---|---|
| 2022 | -11.0% | -20.9% |
| 2023 | +11.5% | +13.1% |
| 2024 | +8.0% | +17.3% |
| 2025 | +8.6% | +13.2% |
| 2026 | +2.5% | -4.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HYG and VLT good diversifiers for each other?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between HYG and VLT?
The HYG/VLT correlation stands at 0.74 on a 3-year window (1 year: 0.60, 5 years: 0.76), computed from weekly returns as of 2026-08-27.
Is VLT a good diversifier for HYG?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.74 mean?
A reading of 0.74 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/hyg-vs-vlt.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/hyg-vs-vlt/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: HYG correlations · VLT correlations
