SPY vs VYM: Correlation & Overlap
SPDR S&P 500 ETF Trust (SPY) and Vanguard High Dividend Yield ETF (VYM) show a very strong relationship: their 3-year correlation of weekly returns is 0.81. Looking through to holdings, 35.2% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and VYM?
Over the past 3 years, SPY and VYM moved with a correlation of 0.81, which is very strong, meaning they move nearly in lockstep. Lately the two have drifted apart, with the 1-year correlation at 0.66 versus 0.81 over 3 years. Over 5 years the correlation is 0.85, and the annualized covariance of weekly returns is 143.5 %².
Among the 4755 assets we track against SPY, VYM ranks #49 by 3-year correlation. Their 12-month results are close: +20.6% for SPY against +21.1% for VYM. Across three years, the rolling one-year figure varied moderately, from 0.65 to 0.93.
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 VYM: side by side
| SPY (SPDR S&P 500 ETF Trust) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +20.6% | +21.1% |
| 5-year return | +82.4% | +76.6% |
| Volatility (ann.) | 14.5% | 12.3% |
| Beta vs S&P 500 | 1.00 | 0.69 |
| Max drawdown (3Y) | -18.8% | -14.5% |
| Dividend yield | 1.01% | 2.24% |
| Expense ratio | 0.09% | 0.04% |
| Assets under management | $795.3B | $99.2B |
| Sector / category | ETF · US Large Cap | ETF · Dividend |
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. VYM, Vanguard's Large Value fund, carries $99.2B under management, 604 holdings, a 0.04% expense ratio, a 2.24% trailing dividend yield.
Portfolio overlap between SPY and VYM
The two portfolios partially overlap: 35.2% of the funds' weight sits in the same underlying holdings (256 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in SPY | Weight in VYM |
|---|---|---|
| AVGO | 2.55% | 7.37% |
| JPM | 1.44% | 3.83% |
| XOM | 0.99% | 2.63% |
| JNJ | 0.98% | 2.51% |
| ABBV | 0.70% | 1.81% |
| CSCO | 0.67% | 1.87% |
| BAC | 0.61% | 1.67% |
| CAT | 0.57% | 1.51% |
| MRK | 0.57% | 1.31% |
| CVX | 0.57% | 1.49% |
| UNH | 0.55% | 1.52% |
| KO | 0.53% | 1.39% |
| PG | 0.51% | 1.37% |
| HD | 0.50% | 1.35% |
| GS | 0.46% | 1.14% |
Largest positions held only by SPY: NVDA (7.68%), AAPL (6.96%), MSFT (5.58%), AMZN (3.85%), GOOGL (3.03%). Only by VYM: BAP (0.11%), RPRX (0.10%), RS (0.08%), EWBC (0.07%), OVV (0.07%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | SPY | VYM |
|---|---|---|
| 2022 | -18.2% | -0.4% |
| 2023 | +26.2% | +6.6% |
| 2024 | +24.9% | +17.6% |
| 2025 | +17.7% | +15.4% |
| 2026 | +13.7% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and VYM good diversifiers for each other?
No. With a correlation of 0.81, SPY and VYM move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between SPY and VYM?
As of 2026-08-27, the correlation of weekly returns between SPY and VYM is 0.81 over 3 years, 0.66 over 1 year and 0.85 over 5 years.
Is VYM a good diversifier for SPY?
No. With a correlation of 0.81, SPY and VYM move nearly in lockstep, so holding both adds very little diversification.
How much do SPY and VYM overlap?
35.2% by weight, across 256 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/spy-vs-vym.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/spy-vs-vym/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: SPY correlations · VYM correlations
