NTRS vs VYM: Correlation
Measured on weekly returns over the past three years, Northern Trust (NTRS) and Vanguard High Dividend Yield ETF (VYM) carry a correlation of 0.73, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NTRS and VYM?
Over the past 3 years, NTRS and VYM moved with a correlation of 0.73, which is strong. Lately the two have drifted apart, with the 1-year correlation at 0.56 versus 0.73 over 3 years. Over 5 years the correlation is 0.75, and the annualized covariance of weekly returns is 212.4 %².
By 3-year correlation, VYM places #14 of the 33 assets tracked against NTRS. The last year tells two different stories: NTRS led by 23.7 percentage points, +44.8% for NTRS against +21.1% for VYM. The rolling one-year correlation moved between 0.56 and 0.82 over the past three years, a moderate range. Note the risk asymmetry: NTRS runs 1.9 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
NTRS vs VYM: side by side
| NTRS (Northern Trust) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +44.8% | +21.1% |
| 5-year return | +83.2% | +76.6% |
| Volatility (ann.) | 23.7% | 12.3% |
| Beta vs S&P 500 | 1.08 | 0.69 |
| Max drawdown (3Y) | -25.2% | -14.5% |
| Market cap | $34.1B | – |
| P/E (trailing) | 16.1 | – |
| Dividend yield | 1.71% | 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 | NTRS | VYM |
|---|---|---|
| 2022 | -23.8% | -0.4% |
| 2023 | -1.0% | +6.6% |
| 2024 | +25.6% | +17.6% |
| 2025 | +36.9% | +15.4% |
| 2026 | +37.8% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.14% of VYM is NTRS itself, so the fund partly moves with the stock by construction.
Are NTRS and VYM good diversifiers for each other?
Only partially. A correlation of 0.73 means NTRS and VYM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between NTRS and VYM?
The NTRS/VYM correlation stands at 0.73 on a 3-year window (1 year: 0.56, 5 years: 0.75), computed from weekly returns as of 2026-08-27.
Is VYM a good diversifier for NTRS?
Only partially. A correlation of 0.73 means NTRS and VYM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.73 mean?
A reading of 0.73 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: NTRS correlations · VYM correlations
