SPY vs VLT: Correlation
Measured on weekly returns over the past three years, SPDR S&P 500 ETF Trust (SPY) and Invesco High Income Trust II (VLT) carry a correlation of 0.67, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and VLT?
Over the past 3 years, SPY and VLT moved with a correlation of 0.67, which is strong. The relationship has been stable: the 1-year correlation (0.70) sits close to the 3-year figure. Over 5 years the correlation is 0.67, and the annualized covariance of weekly returns is 97.3 %².
By 3-year correlation, VLT places #110 of the 4755 assets tracked against SPY. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 21.9 percentage points (+20.6% for SPY against -1.3% for VLT).
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 VLT: side by side
| SPY (SPDR S&P 500 ETF Trust) | VLT (Invesco High Income Trust II) | |
|---|---|---|
| 1-year return | +20.6% | -1.3% |
| 5-year return | +82.4% | +12.4% |
| Volatility (ann.) | 14.5% | 10.0% |
| Beta vs S&P 500 | 1.00 | 0.47 |
| Max drawdown (3Y) | -18.8% | -13.4% |
| Market cap | – | – |
| P/E (trailing) | – | 13.9 |
| Dividend yield | 1.01% | 11.52% |
| 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 | VLT |
|---|---|---|
| 2022 | -18.2% | -20.9% |
| 2023 | +26.2% | +13.1% |
| 2024 | +24.9% | +17.3% |
| 2025 | +17.7% | +13.2% |
| 2026 | +13.7% | -4.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and VLT good diversifiers for each other?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SPY and VLT?
As of 2026-08-27, the correlation of weekly returns between SPY and VLT is 0.67 over 3 years, 0.70 over 1 year and 0.67 over 5 years.
Is VLT a good diversifier for SPY?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.67 mean?
On the −1 to +1 scale, 0.67 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-vlt.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/spy-vs-vlt/)
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Related comparisons
Hubs: SPY correlations · VLT correlations
