GBAB vs SPY: Correlation
Guggenheim Taxable Municipal Bond & Investment Grade Debt (GBAB) and SPDR S&P 500 ETF Trust (SPY) show a weak relationship: their 3-year correlation of weekly returns is 0.21.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are GBAB and SPY?
Across a 3-year window, the weekly returns of GBAB and SPY correlate at 0.21, weak. Lately the two have moved closer together, with the 1-year correlation at 0.54 versus 0.21 over 3 years. Stretching to 5 years gives 0.34, with an annualized covariance of 41.3 %².
Out of 11 assets tracked against GBAB, SPY lands near the bottom at #7. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 21.6 percentage points (-1.0% for GBAB 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.
GBAB vs SPY: side by side
| GBAB (Guggenheim Taxable Municipal Bond & Investment Grade Debt) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -1.0% | +20.6% |
| 5-year return | -11.9% | +82.4% |
| Volatility (ann.) | 13.5% | 14.5% |
| Beta vs S&P 500 | 0.20 | 1.00 |
| Max drawdown (3Y) | -17.3% | -18.8% |
| Market cap | $0.4B | – |
| P/E (trailing) | 11.7 | – |
| Dividend yield | 0.00% | 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 | GBAB | SPY |
|---|---|---|
| 2022 | -25.1% | -18.2% |
| 2023 | +8.6% | +26.2% |
| 2024 | +2.9% | +24.9% |
| 2025 | +8.4% | +17.7% |
| 2026 | -0.6% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are GBAB and SPY good diversifiers for each other?
Reasonably. At 0.21, GBAB and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between GBAB and SPY?
Using weekly returns as of 2026-08-27: 0.21 over 3 years, with 0.54 over the last year and 0.34 over 5 years.
Is SPY a good diversifier for GBAB?
Reasonably. At 0.21, GBAB and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.21 mean?
A reading of 0.21 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: GBAB correlations · SPY correlations
