AEF vs SPY: Correlation
How closely do abrdn Emerging Markets ex-China Fund, Inc. (AEF) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.66, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AEF and SPY?
Across a 3-year window, the weekly returns of AEF and SPY correlate at 0.66, strong. Recent behaviour matches the longer record: 0.74 over 1 year against 0.66 over 3. Stretching to 5 years gives 0.60, with an annualized covariance of 225.6 %².
Within AEF's tracked universe of 21 assets, SPY comes in at #7 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months AEF outperformed by 48.8 percentage points (+69.4% for AEF against +20.6% for SPY). Risk is not evenly split, since AEF 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.
AEF vs SPY: side by side
| AEF (abrdn Emerging Markets ex-China Fund, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +69.4% | +20.6% |
| 5-year return | +66.6% | +82.4% |
| Volatility (ann.) | 23.7% | 14.5% |
| Beta vs S&P 500 | 1.08 | 1.00 |
| Max drawdown (3Y) | -20.0% | -18.8% |
| Market cap | $0.4B | – |
| P/E (trailing) | 4.1 | – |
| Dividend yield | 6.80% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | US Listed | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | AEF | SPY |
|---|---|---|
| 2022 | -29.6% | -18.2% |
| 2023 | +7.1% | +26.2% |
| 2024 | +9.4% | +24.9% |
| 2025 | +50.2% | +17.7% |
| 2026 | +41.8% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AEF and SPY good diversifiers for each other?
To a limited degree. At 0.66 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 AEF and SPY?
The AEF/SPY correlation stands at 0.66 on a 3-year window (1 year: 0.74, 5 years: 0.60), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for AEF?
To a limited degree. At 0.66 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 0.66 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.
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Related comparisons
Hubs: AEF correlations · SPY correlations
