HYG vs VT: Correlation
Measured on weekly returns over the past three years, iShares iBoxx High Yield Corporate Bond ETF (HYG) and Vanguard Total World Stock ETF (VT) 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 VT?
Over the past 3 years, HYG and VT moved with a correlation of 0.74, which is strong. The relationship has been stable: the 1-year correlation (0.82) sits close to the 3-year figure. Over 5 years the correlation is 0.77, and the annualized covariance of weekly returns is 48.5 %².
Within HYG's tracked universe of 46 assets, VT comes in at #11 by 3-year correlation. Correlation aside, the last 12 months split them widely, with VT ahead by 18.1 points (+4.6% versus +22.7%). The link looks structural: the rolling one-year correlation barely moved, holding between 0.65 and 0.87. One caveat on sizing: VT is 3.0 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 VT: side by side
| HYG (iShares iBoxx High Yield Corporate Bond ETF) | VT (Vanguard Total World Stock ETF) | |
|---|---|---|
| 1-year return | +4.6% | +22.7% |
| 5-year return | +19.9% | +67.7% |
| Volatility (ann.) | 4.7% | 13.9% |
| Beta vs S&P 500 | 0.22 | 0.92 |
| Max drawdown (3Y) | -4.6% | -16.5% |
| Dividend yield | 5.94% | 1.59% |
| Expense ratio | 0.49% | 0.06% |
| Assets under management | $17.1B | $97.9B |
| Sector / category | ETF · Bonds | ETF · Global |
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. VT is a Global Large-Stock Blend fund from Vanguard: $97.9B under management, 5308 holdings, a 0.06% expense ratio, a 1.59% trailing dividend yield.
Year-by-year returns
| Year | HYG | VT |
|---|---|---|
| 2022 | -11.0% | -18.0% |
| 2023 | +11.5% | +22.0% |
| 2024 | +8.0% | +16.5% |
| 2025 | +8.6% | +22.4% |
| 2026 | +2.5% | +15.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HYG and VT good diversifiers for each other?
To a limited degree. At 0.74 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between HYG and VT?
The HYG/VT correlation stands at 0.74 on a 3-year window (1 year: 0.82, 5 years: 0.77), computed from weekly returns as of 2026-08-27.
Is VT a good diversifier for HYG?
To a limited degree. At 0.74 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.74 mean?
On the −1 to +1 scale, 0.74 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/hyg-vs-vt.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/hyg-vs-vt/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: HYG correlations · VT correlations
