IVZ vs VYM: Correlation
How closely do Invesco (IVZ) and Vanguard High Dividend Yield ETF (VYM) trade together? Their weekly returns over three years give a correlation of 0.64, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IVZ and VYM?
Over the past 3 years, IVZ and VYM moved with a correlation of 0.64, which is strong. Lately the two have drifted apart, with the 1-year correlation at 0.42 versus 0.64 over 3 years. Over 5 years the correlation is 0.65, and the annualized covariance of weekly returns is 257.4 %².
Within IVZ's tracked universe of 33 assets, VYM comes in at #14 by 3-year correlation. The last year tells two different stories: IVZ led by 34.8 percentage points, +55.9% for IVZ against +21.1% for VYM. On a rolling one-year basis the correlation drifted between 0.39 and 0.77, a moderate band. One caveat on sizing: IVZ is 2.7 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.
IVZ vs VYM: side by side
| IVZ (Invesco) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +55.9% | +21.1% |
| 5-year return | +63.7% | +76.6% |
| Volatility (ann.) | 32.6% | 12.3% |
| Beta vs S&P 500 | 1.29 | 0.69 |
| Max drawdown (3Y) | -36.5% | -14.5% |
| Market cap | $14.7B | – |
| P/E (trailing) | – | – |
| Dividend yield | 2.58% | 2.24% |
| Expense ratio | – | 0.04% |
| Assets under management | – | $99.2B |
| Sector / category | Financials | ETF · Dividend |
VYM, Vanguard's Large Value fund, carries $99.2B under management, 604 holdings, a 0.04% expense ratio, a 2.24% trailing dividend yield.
Year-by-year returns
| Year | IVZ | VYM |
|---|---|---|
| 2022 | -18.7% | -0.4% |
| 2023 | +4.2% | +6.6% |
| 2024 | +3.0% | +17.6% |
| 2025 | +56.9% | +15.4% |
| 2026 | +29.7% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IVZ and VYM good diversifiers for each other?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IVZ and VYM?
The IVZ/VYM correlation stands at 0.64 on a 3-year window (1 year: 0.42, 5 years: 0.65), computed from weekly returns as of 2026-08-27.
Is VYM a good diversifier for IVZ?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.64 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: IVZ correlations · VYM correlations
