Any ideas why their charts have been closely following each other?
That is simple...both move up or down based on the same economic conditions or news! further you can't support one without the other...This may sound too simplistic, but do you really need examples.XLF you can have! Financial will stay down for many years to come, and who knows when decent dividend will return?VNQ on the other hand is a SCREAMING BUY! I am buying 5 indexes weekly though a DRIPVNQ, DTH, XLU, BYM, DVYthis is a formula of success and income for the rest of my life VNQ=indexed REITsDTH= International High Dividend EquitysDVY= indexed DOW DividendsBYM= Indexed INSURED MunicipalsXLU= Indexed American UtilitiesBig winning when the world turns around!
Hmmm... because correlations in general are absurdly high and both of these represent pure trash?