DTF vs SPY: Correlation
DTF Tax-Free Income 2028 Term Fund Inc. (DTF) and SPDR S&P 500 ETF Trust (SPY) show a weak relationship: their 3-year correlation of weekly returns is 0.29.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DTF and SPY?
Across a 3-year window, the weekly returns of DTF and SPY correlate at 0.29, weak. Little has changed lately, as the 1-year reading of 0.30 lands near the 3-year figure. Stretching to 5 years gives 0.44, with an annualized covariance of 21.1 %².
Out of 10 assets tracked against DTF, SPY lands near the bottom at #6. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 15.0 percentage points (+5.6% for DTF against +20.6% for SPY). Risk is not evenly split, since SPY carries 2.9 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.
DTF vs SPY: side by side
| DTF (DTF Tax-Free Income 2028 Term Fund Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +5.6% | +20.6% |
| 5-year return | -7.5% | +82.4% |
| Volatility (ann.) | 5.0% | 14.5% |
| Beta vs S&P 500 | 0.10 | 1.00 |
| Max drawdown (3Y) | -5.4% | -18.8% |
| Market cap | $0.1B | – |
| P/E (trailing) | 28.1 | – |
| Dividend yield | 3.37% | 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 | DTF | SPY |
|---|---|---|
| 2022 | -21.1% | -18.2% |
| 2023 | +2.2% | +26.2% |
| 2024 | +8.2% | +24.9% |
| 2025 | +5.4% | +17.7% |
| 2026 | +3.1% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DTF and SPY good diversifiers for each other?
Reasonably. At 0.29, DTF and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between DTF and SPY?
The DTF/SPY correlation stands at 0.29 on a 3-year window (1 year: 0.30, 5 years: 0.44), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for DTF?
Reasonably. At 0.29, DTF and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.29 mean?
A reading of 0.29 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: DTF correlations · SPY correlations
