VGM vs VKQ: Correlation
Invesco Trust for Investment Grade Municipals (VGM) and Invesco Municipal Trust (VKQ) show a very strong relationship: their 3-year correlation of weekly returns is 0.91.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VGM and VKQ?
Across a 3-year window, the weekly returns of VGM and VKQ correlate at 0.91, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.85) sits close to the 3-year figure. Stretching to 5 years gives 0.91, with an annualized covariance of 129.8 %².
Few assets follow VGM as closely as VKQ, which ranks #2 of 18 tracked partners. Twelve-month performance is nearly a tie, at +17.3% for VGM and +15.9% for VKQ.
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 VKQ: side by side
| VGM (Invesco Trust for Investment Grade Municipals) | VKQ (Invesco Municipal Trust) | |
|---|---|---|
| 1-year return | +17.3% | +15.9% |
| 5-year return | -0.8% | -4.8% |
| Volatility (ann.) | 12.2% | 11.7% |
| Beta vs S&P 500 | 0.30 | 0.30 |
| Max drawdown (3Y) | -11.5% | -11.7% |
| Market cap | $0.6B | – |
| P/E (trailing) | 33.5 | 32.7 |
| Dividend yield | 7.51% | 7.72% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | VGM | VKQ |
|---|---|---|
| 2022 | -24.2% | -22.3% |
| 2023 | +3.0% | +0.9% |
| 2024 | +8.8% | +9.7% |
| 2025 | +11.1% | +6.5% |
| 2026 | +5.3% | +6.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VGM and VKQ good diversifiers for each other?
No. With a correlation of 0.91, VGM and VKQ move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between VGM and VKQ?
The VGM/VKQ correlation stands at 0.91 on a 3-year window (1 year: 0.85, 5 years: 0.91), computed from weekly returns as of 2026-08-27.
Is VKQ a good diversifier for VGM?
No. With a correlation of 0.91, VGM and VKQ move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.91 mean?
A reading of 0.91 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vgm-vs-vkq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vgm-vs-vkq/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: VGM correlations · VKQ correlations
