VYM vs XYL: Correlation
Vanguard High Dividend Yield ETF (VYM) and Xylem Inc. (XYL) show a strong relationship: their 3-year correlation of weekly returns is 0.60.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VYM and XYL?
Across a 3-year window, the weekly returns of VYM and XYL correlate at 0.60, strong. The link has loosened recently: the 1-year correlation (0.37) runs below the 3-year figure (0.60). Stretching to 5 years gives 0.63, with an annualized covariance of 176.1 %².
Within VYM's tracked universe of 122 assets, XYL comes in at #70 by 3-year correlation. The last year tells two different stories: VYM led by 42.2 percentage points, +21.1% for VYM against -21.1% for XYL. This link changes with the market regime, having swung between 0.21 and 0.82 on a rolling one-year basis. Note the risk asymmetry: XYL runs 1.9 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
VYM vs XYL: side by side
| VYM (Vanguard High Dividend Yield ETF) | XYL (Xylem Inc.) | |
|---|---|---|
| 1-year return | +21.1% | -21.1% |
| 5-year return | +76.6% | -12.5% |
| Volatility (ann.) | 12.3% | 23.9% |
| Beta vs S&P 500 | 0.69 | 0.96 |
| Max drawdown (3Y) | -14.5% | -30.0% |
| Market cap | – | $26.3B |
| P/E (trailing) | – | 26.8 |
| Dividend yield | 2.24% | 1.47% |
| Expense ratio | 0.04% | – |
| Assets under management | $99.2B | – |
| Sector / category | ETF · Dividend | Industrials |
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 | VYM | XYL |
|---|---|---|
| 2022 | -0.4% | -6.6% |
| 2023 | +6.6% | +4.8% |
| 2024 | +17.6% | +2.6% |
| 2025 | +15.4% | +18.8% |
| 2026 | +15.9% | -16.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.11% of VYM is XYL itself, so the fund partly moves with the stock by construction.
Are VYM and XYL good diversifiers for each other?
Only partially. A correlation of 0.60 means VYM and XYL share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between VYM and XYL?
The VYM/XYL correlation stands at 0.60 on a 3-year window (1 year: 0.37, 5 years: 0.63), computed from weekly returns as of 2026-08-27.
Is XYL a good diversifier for VYM?
Only partially. A correlation of 0.60 means VYM and XYL share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.60 mean?
A reading of 0.60 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/vym-vs-xyl.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vym-vs-xyl/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VYM correlations · XYL correlations
