STT vs VYM: Correlation
How closely do State Street Corporation (STT) 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 STT and VYM?
On 3 years of weekly data the STT/VYM correlation comes out at 0.72, strong. The link has loosened recently: the 1-year correlation (0.55) runs below the 3-year figure (0.72). The 5-year figure is 0.73, and annualized covariance runs at 203.8 %².
By 3-year correlation, VYM places #10 of the 32 assets tracked against STT. Their recent paths diverged sharply: over the last 12 months STT outperformed by 51.6 percentage points (+72.7% for STT against +21.1% for VYM). The rolling one-year correlation moved between 0.56 and 0.82 over the past three years, a moderate range. One caveat on sizing: STT is 1.9 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
STT vs VYM: side by side
| STT (State Street Corporation) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +72.7% | +21.1% |
| 5-year return | +144.9% | +76.6% |
| Volatility (ann.) | 22.9% | 12.3% |
| Beta vs S&P 500 | 0.97 | 0.69 |
| Max drawdown (3Y) | -25.7% | -14.5% |
| Market cap | $53.1B | – |
| P/E (trailing) | 17.1 | – |
| Dividend yield | 1.74% | 2.24% |
| Expense ratio | – | 0.04% |
| Assets under management | – | $99.2B |
| Sector / category | Financials | 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 | STT | VYM |
|---|---|---|
| 2022 | -13.8% | -0.4% |
| 2023 | +3.5% | +6.6% |
| 2024 | +30.2% | +17.6% |
| 2025 | +35.5% | +15.4% |
| 2026 | +52.6% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
STT represents 0.2% of VYM's portfolio, so part of any move in VYM is STT itself, and the correlation between them is partly mechanical.
Are STT 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 STT and VYM?
As of 2026-08-27, the correlation of weekly returns between STT and VYM is 0.72 over 3 years, 0.55 over 1 year and 0.73 over 5 years.
Is VYM a good diversifier for STT?
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: STT correlations · VYM correlations
