PFG vs VYM: Correlation
Principal Financial Group (PFG) and Vanguard High Dividend Yield ETF (VYM) show a strong relationship: their 3-year correlation of weekly returns is 0.71.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PFG and VYM?
Over the past 3 years, PFG and VYM moved with a correlation of 0.71, which is strong. Lately the two have drifted apart, with the 1-year correlation at 0.40 versus 0.71 over 3 years. Over 5 years the correlation is 0.75, and the annualized covariance of weekly returns is 199.5 %².
Among the 32 assets we track against PFG, VYM ranks #7 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months PFG outperformed by 22.8 percentage points (+43.9% for PFG against +21.1% for VYM). The rolling one-year correlation moved between 0.40 and 0.85 over the past three years, a moderate range. Note the risk asymmetry: PFG 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.
PFG vs VYM: side by side
| PFG (Principal Financial Group) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +43.9% | +21.1% |
| 5-year return | +99.7% | +76.6% |
| Volatility (ann.) | 22.9% | 12.3% |
| Beta vs S&P 500 | 0.88 | 0.69 |
| Max drawdown (3Y) | -22.4% | -14.5% |
| Market cap | $24.0B | – |
| P/E (trailing) | 16.0 | – |
| Dividend yield | 2.84% | 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 | PFG | VYM |
|---|---|---|
| 2022 | +20.1% | -0.4% |
| 2023 | -2.8% | +6.6% |
| 2024 | +1.9% | +17.6% |
| 2025 | +18.4% | +15.4% |
| 2026 | +29.3% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
PFG represents 0.1% of VYM's portfolio, so part of any move in VYM is PFG itself, and the correlation between them is partly mechanical.
Are PFG and VYM good diversifiers for each other?
To a limited degree. At 0.71 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 PFG and VYM?
The PFG/VYM correlation stands at 0.71 on a 3-year window (1 year: 0.40, 5 years: 0.75), computed from weekly returns as of 2026-08-27.
Is VYM a good diversifier for PFG?
To a limited degree. At 0.71 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 0.71 mean?
A reading of 0.71 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: PFG correlations · VYM correlations
