MDY vs VYM: Correlation & Overlap
Measured on weekly returns over the past three years, SPDR S&P MidCap 400 ETF (MDY) and Vanguard High Dividend Yield ETF (VYM) carry a correlation of 0.90, a very strong link. The two funds also share 4.4% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MDY and VYM?
On 3 years of weekly data the MDY/VYM correlation comes out at 0.90, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.82) sits close to the 3-year figure. The 5-year figure is 0.89, and annualized covariance runs at 182.8 %².
Within MDY's tracked universe of 359 assets, VYM comes in at #5 by 3-year correlation. Neither side won the trailing year by much: +18.3% against +21.1%. The rolling one-year correlation stayed in a tight band between 0.82 and 0.95 over the past three years, which points to a structural rather than episodic relationship.
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.
MDY vs VYM: side by side
| MDY (SPDR S&P MidCap 400 ETF) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +18.3% | +21.1% |
| 5-year return | +47.5% | +76.6% |
| Volatility (ann.) | 16.5% | 12.3% |
| Beta vs S&P 500 | 0.91 | 0.69 |
| Max drawdown (3Y) | -24.0% | -14.5% |
| Dividend yield | 1.02% | 2.24% |
| Expense ratio | 0.23% | 0.04% |
| Assets under management | $26.5B | $99.2B |
| Sector / category | ETF · US Small & Mid Cap | ETF · Dividend |
MDY, State Street Investment Management's Mid-Cap Blend fund, carries $26.5B under management, 400 holdings, a 0.23% expense ratio, a 1.02% trailing dividend yield. VYM, Vanguard's Large Value fund, carries $99.2B under management, 604 holdings, a 0.04% expense ratio, a 2.24% trailing dividend yield.
Portfolio overlap between MDY and VYM
The two portfolios are largely distinct. Weighing the shared positions, 4.4% of the two funds is identical, spread across 148 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in MDY | Weight in VYM |
|---|---|---|
| RS | 0.55% | 0.08% |
| EWBC | 0.49% | 0.07% |
| OVV | 0.49% | 0.07% |
| PR | 0.49% | 0.07% |
| PNFP | 0.42% | 0.06% |
| RGA | 0.44% | 0.06% |
| DINO | 0.41% | 0.06% |
| DTM | 0.37% | 0.06% |
| UNM | 0.37% | 0.06% |
| RPM | 0.37% | 0.06% |
| TXRH | 0.37% | 0.05% |
| EQH | 0.38% | 0.05% |
| FNF | 0.33% | 0.05% |
| BWA | 0.36% | 0.05% |
| DKS | 0.23% | 0.05% |
Largest positions held only by MDY: TWLO (0.95%), P (0.94%), ILMN (0.93%), FTI (0.83%), ATI (0.80%). Only by VYM: AVGO (7.37%), JPM (3.83%), XOM (2.63%), JNJ (2.51%), CSCO (1.87%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | MDY | VYM |
|---|---|---|
| 2022 | -13.3% | -0.4% |
| 2023 | +16.1% | +6.6% |
| 2024 | +13.6% | +17.6% |
| 2025 | +7.2% | +15.4% |
| 2026 | +16.4% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MDY and VYM good diversifiers for each other?
Not really. At 0.90, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between MDY and VYM?
As of 2026-08-27, the correlation of weekly returns between MDY and VYM is 0.90 over 3 years, 0.82 over 1 year and 0.89 over 5 years.
Is VYM a good diversifier for MDY?
Not really. At 0.90, the two trade almost as one position, and owning both buys little extra protection.
How much do MDY and VYM overlap?
The two funds share 148 holdings amounting to 4.4% of weight, per issuer portfolio files dated 2026-08-26.
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