MHD vs SPY: Correlation
Measured on weekly returns over the past three years, Blackrock MuniHoldings Fund, Inc. (MHD) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.32, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MHD and SPY?
On 3 years of weekly data the MHD/SPY correlation comes out at 0.32, moderate. The link has tightened recently: the 1-year correlation (0.52) runs above the 3-year figure (0.32). The 5-year figure is 0.42, and annualized covariance runs at 54.1 %².
Out of 26 assets tracked against MHD, SPY lands near the bottom at #22. The trailing year gives SPY the advantage: +10.2% versus +20.6%, a 10.4-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.
MHD vs SPY: side by side
| MHD (Blackrock MuniHoldings Fund, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +10.2% | +20.6% |
| 5-year return | -12.7% | +82.4% |
| Volatility (ann.) | 11.7% | 14.5% |
| Beta vs S&P 500 | 0.26 | 1.00 |
| Max drawdown (3Y) | -13.2% | -18.8% |
| Market cap | – | – |
| P/E (trailing) | 37.0 | – |
| Dividend yield | 6.23% | 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 | MHD | SPY |
|---|---|---|
| 2022 | -23.7% | -18.2% |
| 2023 | +2.1% | +26.2% |
| 2024 | +3.4% | +24.9% |
| 2025 | +7.1% | +17.7% |
| 2026 | +1.8% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MHD and SPY good diversifiers for each other?
Reasonably. At 0.32, MHD and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between MHD and SPY?
Using weekly returns as of 2026-08-27: 0.32 over 3 years, with 0.52 over the last year and 0.42 over 5 years.
Is SPY a good diversifier for MHD?
Reasonably. At 0.32, MHD and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.32 mean?
On the −1 to +1 scale, 0.32 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: MHD correlations · SPY correlations
