IQI vs VGM: Correlation
Measured on weekly returns over the past three years, Invesco Quality Municipal Income Trust (IQI) and Invesco Trust for Investment Grade Municipals (VGM) carry a correlation of 0.91, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IQI and VGM?
Over the past 3 years, IQI and VGM moved with a correlation of 0.91, which is very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.86 lands near the 3-year figure. Over 5 years the correlation is 0.88, and the annualized covariance of weekly returns is 130.1 %².
VGM is one of the assets that tracks IQI most closely: it ranks #1 out of the 27 assets we track against IQI. Twelve-month performance is nearly a tie, at +16.7% for IQI and +17.3% for VGM.
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.
IQI vs VGM: side by side
| IQI (Invesco Quality Municipal Income Trust) | VGM (Invesco Trust for Investment Grade Municipals) | |
|---|---|---|
| 1-year return | +16.7% | +17.3% |
| 5-year return | +1.1% | -0.8% |
| Volatility (ann.) | 11.8% | 12.2% |
| Beta vs S&P 500 | 0.31 | 0.30 |
| Max drawdown (3Y) | -11.2% | -11.5% |
| Market cap | – | $0.6B |
| P/E (trailing) | 29.9 | 33.5 |
| Dividend yield | 7.50% | 7.51% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | IQI | VGM |
|---|---|---|
| 2022 | -26.9% | -24.2% |
| 2023 | +5.9% | +3.0% |
| 2024 | +10.5% | +8.8% |
| 2025 | +9.2% | +11.1% |
| 2026 | +7.1% | +5.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IQI and VGM good diversifiers for each other?
No: a correlation of 0.91 means IQI and VGM tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between IQI and VGM?
Using weekly returns as of 2026-08-27: 0.91 over 3 years, with 0.86 over the last year and 0.88 over 5 years.
Is VGM a good diversifier for IQI?
No: a correlation of 0.91 means IQI and VGM tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.91 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: IQI correlations · VGM correlations
