FFA vs SPY: Correlation
Measured on weekly returns over the past three years, First Trust Enhanced Equity Income Fund (FFA) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.91, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FFA and SPY?
On 3 years of weekly data the FFA/SPY correlation comes out at 0.91, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.90 lands near the 3-year figure. The 5-year figure is 0.91, and annualized covariance runs at 195.1 %².
Few assets follow FFA as closely as SPY, which ranks #2 of 20 tracked partners. Their 12-month results are close: +17.3% for FFA against +20.6% for SPY.
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.
FFA vs SPY: side by side
| FFA (First Trust Enhanced Equity Income Fund) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +17.3% | +20.6% |
| 5-year return | +54.8% | +82.4% |
| Volatility (ann.) | 14.9% | 14.5% |
| Beta vs S&P 500 | 0.93 | 1.00 |
| Max drawdown (3Y) | -19.9% | -18.8% |
| Market cap | $0.5B | – |
| P/E (trailing) | 5.7 | – |
| Dividend yield | 6.39% | 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 | FFA | SPY |
|---|---|---|
| 2022 | -20.3% | -18.2% |
| 2023 | +24.7% | +26.2% |
| 2024 | +21.5% | +24.9% |
| 2025 | +14.2% | +17.7% |
| 2026 | +8.9% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FFA and SPY good diversifiers for each other?
No. With a correlation of 0.91, FFA and SPY move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between FFA and SPY?
As of 2026-08-27, the correlation of weekly returns between FFA and SPY is 0.91 over 3 years, 0.90 over 1 year and 0.91 over 5 years.
Is SPY a good diversifier for FFA?
No. With a correlation of 0.91, FFA and SPY move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.91 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: FFA correlations · SPY correlations
