SPY vs VBF: Correlation
Measured on weekly returns over the past three years, SPDR S&P 500 ETF Trust (SPY) and Invesco Bond Fund (VBF) carry a correlation of 0.30, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and VBF?
Across a 3-year window, the weekly returns of SPY and VBF correlate at 0.30, moderate. Lately the two have moved closer together, with the 1-year correlation at 0.55 versus 0.30 over 3 years. Stretching to 5 years gives 0.29, with an annualized covariance of 39.8 %².
Within SPY's tracked universe of 4755 assets, VBF comes in at #2253 by 3-year correlation. The last year tells two different stories: SPY led by 19.9 percentage points, +20.6% for SPY against +0.7% for VBF. Note the risk asymmetry: SPY runs 1.6 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.
SPY vs VBF: side by side
| SPY (SPDR S&P 500 ETF Trust) | VBF (Invesco Bond Fund) | |
|---|---|---|
| 1-year return | +20.6% | +0.7% |
| 5-year return | +82.4% | -4.4% |
| Volatility (ann.) | 14.5% | 9.2% |
| Beta vs S&P 500 | 1.00 | 0.19 |
| Max drawdown (3Y) | -18.8% | -11.5% |
| Market cap | – | $0.2B |
| P/E (trailing) | – | 14.4 |
| Dividend yield | 1.01% | 5.72% |
| Expense ratio | 0.09% | – |
| Assets under management | $795.3B | – |
| Sector / category | ETF · US Large Cap | US Listed |
On the fund side, SPY sits in the Large Blend category at State Street Investment Management, with $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | SPY | VBF |
|---|---|---|
| 2022 | -18.2% | -17.8% |
| 2023 | +26.2% | +2.3% |
| 2024 | +24.9% | +7.0% |
| 2025 | +17.7% | +5.5% |
| 2026 | +13.7% | -1.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and VBF good diversifiers for each other?
Reasonably. At 0.30, SPY and VBF keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between SPY and VBF?
The SPY/VBF correlation stands at 0.30 on a 3-year window (1 year: 0.55, 5 years: 0.29), computed from weekly returns as of 2026-08-27.
Is VBF a good diversifier for SPY?
Reasonably. At 0.30, SPY and VBF keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.30 mean?
On the −1 to +1 scale, 0.30 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/spy-vs-vbf.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/spy-vs-vbf/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: SPY correlations · VBF correlations
