KTF vs SPY: Correlation
Measured on weekly returns over the past three years, DWS Municipal Income Trust (KTF) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.23, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KTF and SPY?
On 3 years of weekly data the KTF/SPY correlation comes out at 0.23, weak. Lately the two have moved closer together, with the 1-year correlation at 0.44 versus 0.23 over 3 years. The 5-year figure is 0.35, and annualized covariance runs at 39.2 %².
Among the 13 assets we track against KTF, SPY ranks #7 by 3-year correlation. The trailing year gives SPY the advantage: +9.8% versus +20.6%, a 10.8-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.
KTF vs SPY: side by side
| KTF (DWS Municipal Income Trust) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +9.8% | +20.6% |
| 5-year return | -3.3% | +82.4% |
| Volatility (ann.) | 11.7% | 14.5% |
| Beta vs S&P 500 | 0.19 | 1.00 |
| Max drawdown (3Y) | -11.3% | -18.8% |
| Market cap | $0.3B | – |
| P/E (trailing) | 10.1 | – |
| Dividend yield | 8.35% | 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 | KTF | SPY |
|---|---|---|
| 2022 | -23.7% | -18.2% |
| 2023 | +7.1% | +26.2% |
| 2024 | +13.8% | +24.9% |
| 2025 | +4.6% | +17.7% |
| 2026 | +2.0% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KTF and SPY good diversifiers for each other?
A fair diversifier. At 0.23, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between KTF and SPY?
Using weekly returns as of 2026-08-27: 0.23 over 3 years, with 0.44 over the last year and 0.35 over 5 years.
Is SPY a good diversifier for KTF?
A fair diversifier. At 0.23, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.23 mean?
On the −1 to +1 scale, 0.23 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: KTF correlations · SPY correlations
