SCD vs VYM: Correlation
How closely do LMP Capital and Income Fund Inc. (SCD) and Vanguard High Dividend Yield ETF (VYM) trade together? Their weekly returns over three years give a correlation of 0.72, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SCD and VYM?
Over the past 3 years, SCD and VYM moved with a correlation of 0.72, which is strong. Lately the two have drifted apart, with the 1-year correlation at 0.57 versus 0.72 over 3 years. Over 5 years the correlation is 0.79, and the annualized covariance of weekly returns is 154.8 %².
Among the 12 assets we track against SCD, VYM ranks #5 by 3-year correlation. Over the last 12 months VYM came out ahead by 10.2 percentage points (+10.9% against +21.1%).
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.
SCD vs VYM: side by side
| SCD (LMP Capital and Income Fund Inc.) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +10.9% | +21.1% |
| 5-year return | +68.6% | +76.6% |
| Volatility (ann.) | 17.4% | 12.3% |
| Beta vs S&P 500 | 0.81 | 0.69 |
| Max drawdown (3Y) | -21.8% | -14.5% |
| Market cap | $0.4B | – |
| P/E (trailing) | 5.1 | – |
| Dividend yield | 9.25% | 2.24% |
| Expense ratio | – | 0.04% |
| Assets under management | – | $99.2B |
| Sector / category | US Listed | 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 | SCD | VYM |
|---|---|---|
| 2022 | -14.0% | -0.4% |
| 2023 | +27.9% | +6.6% |
| 2024 | +33.7% | +17.6% |
| 2025 | -5.7% | +15.4% |
| 2026 | +12.3% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SCD and VYM good diversifiers for each other?
To a limited degree. At 0.72 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 SCD and VYM?
Using weekly returns as of 2026-08-27: 0.72 over 3 years, with 0.57 over the last year and 0.79 over 5 years.
Is VYM a good diversifier for SCD?
To a limited degree. At 0.72 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 0.72 mean?
On the −1 to +1 scale, 0.72 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: SCD correlations · VYM correlations
