EMF vs SPY: Correlation
Templeton Emerging Markets Fund (EMF) and SPDR S&P 500 ETF Trust (SPY) show a strong relationship: their 3-year correlation of weekly returns is 0.64.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EMF and SPY?
On 3 years of weekly data the EMF/SPY correlation comes out at 0.64, strong. The relationship has been stable: the 1-year correlation (0.72) sits close to the 3-year figure. The 5-year figure is 0.60, and annualized covariance runs at 195.1 %².
Among the 21 assets we track against EMF, SPY ranks #9 by 3-year correlation. Correlation aside, the last 12 months split them widely, with EMF ahead by 41.0 points (+61.6% versus +20.6%).
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.
EMF vs SPY: side by side
| EMF (Templeton Emerging Markets Fund) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +61.6% | +20.6% |
| 5-year return | +91.4% | +82.4% |
| Volatility (ann.) | 21.0% | 14.5% |
| Beta vs S&P 500 | 0.93 | 1.00 |
| Max drawdown (3Y) | -19.5% | -18.8% |
| Market cap | $0.3B | – |
| P/E (trailing) | 2.4 | – |
| Dividend yield | 3.91% | 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 | EMF | SPY |
|---|---|---|
| 2022 | -21.5% | -18.2% |
| 2023 | +8.8% | +26.2% |
| 2024 | +6.6% | +24.9% |
| 2025 | +58.2% | +17.7% |
| 2026 | +36.1% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EMF and SPY good diversifiers for each other?
Only partially. A correlation of 0.64 means EMF and SPY 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 EMF and SPY?
As of 2026-08-27, the correlation of weekly returns between EMF and SPY is 0.64 over 3 years, 0.72 over 1 year and 0.60 over 5 years.
Is SPY a good diversifier for EMF?
Only partially. A correlation of 0.64 means EMF and SPY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.64 mean?
A reading of 0.64 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: EMF correlations · SPY correlations
