ETB vs SPY: Correlation
Measured on weekly returns over the past three years, Eaton Vance Tax-Managed Buy-Write Income Fund Eaton Vance (ETB) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.86, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ETB and SPY?
Across a 3-year window, the weekly returns of ETB and SPY correlate at 0.86, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.81) sits close to the 3-year figure. Stretching to 5 years gives 0.73, with an annualized covariance of 173.0 %².
By 3-year correlation, SPY places #7 of the 20 assets tracked against ETB. The trailing year gives SPY the advantage: +14.2% versus +20.6%, a 6.4-point spread.
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.
ETB vs SPY: side by side
| ETB (Eaton Vance Tax-Managed Buy-Write Income Fund Eaton Vance) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +14.2% | +20.6% |
| 5-year return | +44.4% | +82.4% |
| Volatility (ann.) | 13.9% | 14.5% |
| Beta vs S&P 500 | 0.83 | 1.00 |
| Max drawdown (3Y) | -20.1% | -18.8% |
| Market cap | $0.5B | – |
| P/E (trailing) | 7.7 | – |
| Dividend yield | 8.13% | 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 | ETB | SPY |
|---|---|---|
| 2022 | -16.6% | -18.2% |
| 2023 | +7.5% | +26.2% |
| 2024 | +26.2% | +24.9% |
| 2025 | +11.2% | +17.7% |
| 2026 | +8.7% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ETB and SPY good diversifiers for each other?
No. With a correlation of 0.86, ETB and SPY move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between ETB and SPY?
Using weekly returns as of 2026-08-27: 0.86 over 3 years, with 0.81 over the last year and 0.73 over 5 years.
Is SPY a good diversifier for ETB?
No. With a correlation of 0.86, ETB and SPY move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.86 mean?
A reading of 0.86 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: ETB correlations · SPY correlations
