SPY vs VGM: Correlation
SPDR S&P 500 ETF Trust (SPY) and Invesco Trust for Investment Grade Municipals (VGM) show a moderate relationship: their 3-year correlation of weekly returns is 0.35.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and VGM?
Over the past 3 years, SPY and VGM moved with a correlation of 0.35, which is moderate. Lately the two have moved closer together, with the 1-year correlation at 0.57 versus 0.35 over 3 years. Over 5 years the correlation is 0.46, and the annualized covariance of weekly returns is 62.0 %².
By 3-year correlation, VGM places #1711 of the 4755 assets tracked against SPY. Twelve-month performance is nearly a tie, at +20.6% for SPY and +17.3% for VGM.
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 VGM: side by side
| SPY (SPDR S&P 500 ETF Trust) | VGM (Invesco Trust for Investment Grade Municipals) | |
|---|---|---|
| 1-year return | +20.6% | +17.3% |
| 5-year return | +82.4% | -0.8% |
| Volatility (ann.) | 14.5% | 12.2% |
| Beta vs S&P 500 | 1.00 | 0.30 |
| Max drawdown (3Y) | -18.8% | -11.5% |
| Market cap | – | $0.6B |
| P/E (trailing) | – | 33.5 |
| Dividend yield | 1.01% | 7.51% |
| Expense ratio | 0.09% | – |
| Assets under management | $795.3B | – |
| Sector / category | ETF · US Large Cap | US Listed |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | SPY | VGM |
|---|---|---|
| 2022 | -18.2% | -24.2% |
| 2023 | +26.2% | +3.0% |
| 2024 | +24.9% | +8.8% |
| 2025 | +17.7% | +11.1% |
| 2026 | +13.7% | +5.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and VGM good diversifiers for each other?
A fair diversifier. At 0.35, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between SPY and VGM?
As of 2026-08-27, the correlation of weekly returns between SPY and VGM is 0.35 over 3 years, 0.57 over 1 year and 0.46 over 5 years.
Is VGM a good diversifier for SPY?
A fair diversifier. At 0.35, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.35 mean?
On the −1 to +1 scale, 0.35 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: SPY correlations · VGM correlations
