TD vs VYM: Correlation
Toronto Dominion Bank (The) (TD) and Vanguard High Dividend Yield ETF (VYM) show a moderate relationship: their 3-year correlation of weekly returns is 0.56.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TD and VYM?
Over the past 3 years, TD and VYM moved with a correlation of 0.56, which is moderate. The relationship has been stable: the 1-year correlation (0.51) sits close to the 3-year figure. Over 5 years the correlation is 0.62, and the annualized covariance of weekly returns is 131.3 %².
Among the 13 assets we track against TD, VYM ranks #4 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months TD outperformed by 40.3 percentage points (+61.4% for TD against +21.1% for VYM). Risk is not evenly split, since TD carries 1.6 times the volatility of the other side.
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.
TD vs VYM: side by side
| TD (Toronto Dominion Bank (The)) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +61.4% | +21.1% |
| 5-year return | +124.4% | +76.6% |
| Volatility (ann.) | 19.1% | 12.3% |
| Beta vs S&P 500 | 0.59 | 0.69 |
| Max drawdown (3Y) | -19.2% | -14.5% |
| Market cap | $198.4B | – |
| P/E (trailing) | 19.4 | – |
| Dividend yield | 0.00% | 2.24% |
| Expense ratio | – | 0.04% |
| Assets under management | – | $99.2B |
| Sector / category | US Listed | 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 | TD | VYM |
|---|---|---|
| 2022 | -12.2% | -0.4% |
| 2023 | +4.6% | +6.6% |
| 2024 | -13.4% | +17.6% |
| 2025 | +83.6% | +15.4% |
| 2026 | +30.4% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TD and VYM good diversifiers for each other?
To a limited degree. At 0.56 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 TD and VYM?
Using weekly returns as of 2026-08-27: 0.56 over 3 years, with 0.51 over the last year and 0.62 over 5 years.
Is VYM a good diversifier for TD?
To a limited degree. At 0.56 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 0.56 mean?
A reading of 0.56 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: TD correlations · VYM correlations
