IVZ vs MDY: Correlation
How closely do Invesco (IVZ) and SPDR S&P MidCap 400 ETF (MDY) trade together? Their weekly returns over three years give a correlation of 0.68, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IVZ and MDY?
On 3 years of weekly data the IVZ/MDY correlation comes out at 0.68, strong. The past 12 months show a weaker link (0.54) than the 3-year average (0.68). The 5-year figure is 0.70, and annualized covariance runs at 365.4 %².
In IVZ's tracked universe of 33 assets, MDY sits right near the top at #3. Their recent paths diverged sharply: over the last 12 months IVZ outperformed by 37.6 percentage points (+55.9% for IVZ against +18.3% for MDY). The rolling one-year correlation moved between 0.48 and 0.82 over the past three years, a moderate range. One caveat on sizing: IVZ is 2.0 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
IVZ vs MDY: side by side
| IVZ (Invesco) | MDY (SPDR S&P MidCap 400 ETF) | |
|---|---|---|
| 1-year return | +55.9% | +18.3% |
| 5-year return | +63.7% | +47.5% |
| Volatility (ann.) | 32.6% | 16.5% |
| Beta vs S&P 500 | 1.29 | 0.91 |
| Max drawdown (3Y) | -36.5% | -24.0% |
| Market cap | $14.7B | – |
| P/E (trailing) | – | – |
| Dividend yield | 2.58% | 1.02% |
| Expense ratio | – | 0.23% |
| Assets under management | – | $26.5B |
| Sector / category | Financials | ETF · US Small & Mid Cap |
MDY, State Street Investment Management's Mid-Cap Blend fund, carries $26.5B under management, 400 holdings, a 0.23% expense ratio, a 1.02% trailing dividend yield.
Year-by-year returns
| Year | IVZ | MDY |
|---|---|---|
| 2022 | -18.7% | -13.3% |
| 2023 | +4.2% | +16.1% |
| 2024 | +3.0% | +13.6% |
| 2025 | +56.9% | +7.2% |
| 2026 | +29.7% | +16.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IVZ and MDY good diversifiers for each other?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IVZ and MDY?
As of 2026-08-27, the correlation of weekly returns between IVZ and MDY is 0.68 over 3 years, 0.54 over 1 year and 0.70 over 5 years.
Is MDY a good diversifier for IVZ?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.68 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: IVZ correlations · MDY correlations
