VGM vs VKI: Correlation
Invesco Trust for Investment Grade Municipals (VGM) and Invesco Advantage Municipal Income Trust II (VKI) show a very strong relationship: their 3-year correlation of weekly returns is 0.89.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VGM and VKI?
On 3 years of weekly data the VGM/VKI correlation comes out at 0.89, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.86) sits close to the 3-year figure. The 5-year figure is 0.87, and annualized covariance runs at 151.9 %².
In VGM's tracked universe of 18 assets, VKI sits right near the top at #3. Twelve-month performance is nearly a tie, at +17.3% for VGM and +15.7% for VKI.
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.
VGM vs VKI: side by side
| VGM (Invesco Trust for Investment Grade Municipals) | VKI (Invesco Advantage Municipal Income Trust II) | |
|---|---|---|
| 1-year return | +17.3% | +15.7% |
| 5-year return | -0.8% | -5.1% |
| Volatility (ann.) | 12.2% | 13.9% |
| Beta vs S&P 500 | 0.30 | 0.32 |
| Max drawdown (3Y) | -11.5% | -12.4% |
| Market cap | $0.6B | $0.4B |
| P/E (trailing) | 33.5 | 35.6 |
| Dividend yield | 7.51% | 7.50% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | VGM | VKI |
|---|---|---|
| 2022 | -24.2% | -25.5% |
| 2023 | +3.0% | +3.1% |
| 2024 | +8.8% | +10.2% |
| 2025 | +11.1% | +12.8% |
| 2026 | +5.3% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VGM and VKI good diversifiers for each other?
No: a correlation of 0.89 means VGM and VKI tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between VGM and VKI?
As of 2026-08-27, the correlation of weekly returns between VGM and VKI is 0.89 over 3 years, 0.86 over 1 year and 0.87 over 5 years.
Is VKI a good diversifier for VGM?
No: a correlation of 0.89 means VGM and VKI tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.89 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vgm-vs-vki.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vgm-vs-vki/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VGM correlations · VKI correlations
