KWEB vs SPY: Correlation
Measured on weekly returns over the past three years, KraneShares CSI China Internet ETF (KWEB) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.38, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KWEB and SPY?
Across a 3-year window, the weekly returns of KWEB and SPY correlate at 0.38, moderate. The past 12 months show a tighter link (0.59) than the 3-year average (0.38). Stretching to 5 years gives 0.32, with an annualized covariance of 187.7 %².
Within KWEB's tracked universe of 40 assets, SPY comes in at #22 by 3-year correlation. The last year tells two different stories: SPY led by 46.7 percentage points, -26.1% for KWEB against +20.6% for SPY. The relationship is regime-dependent: the rolling one-year correlation swung between 0.21 and 0.71 over the past three years, so this pair behaves very differently depending on the market environment. Risk is not evenly split, since KWEB carries 2.3 times the volatility of the other side.
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.
KWEB vs SPY: side by side
| KWEB (KraneShares CSI China Internet ETF) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -26.1% | +20.6% |
| 5-year return | -36.2% | +82.4% |
| Volatility (ann.) | 33.9% | 14.5% |
| Beta vs S&P 500 | 0.90 | 1.00 |
| Max drawdown (3Y) | -41.6% | -18.8% |
| Dividend yield | – | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | ETF · Thematic | 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 | KWEB | SPY |
|---|---|---|
| 2022 | -17.2% | -18.2% |
| 2023 | -9.1% | +26.2% |
| 2024 | +12.0% | +24.9% |
| 2025 | +23.5% | +17.7% |
| 2026 | -23.3% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KWEB and SPY good diversifiers for each other?
Reasonably. At 0.38, KWEB and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between KWEB and SPY?
As of 2026-08-27, the correlation of weekly returns between KWEB and SPY is 0.38 over 3 years, 0.59 over 1 year and 0.32 over 5 years.
Is SPY a good diversifier for KWEB?
Reasonably. At 0.38, KWEB and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.38 mean?
On the −1 to +1 scale, 0.38 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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Hubs: KWEB correlations · SPY correlations
