MSD vs SPY: Correlation
Morgan Stanley Emerging Markets Debt Fund, Inc. (MSD) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.50.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MSD and SPY?
On 3 years of weekly data the MSD/SPY correlation comes out at 0.50, moderate. The link has tightened recently: the 1-year correlation (0.65) runs above the 3-year figure (0.50). The 5-year figure is 0.48, and annualized covariance runs at 84.2 %².
By 3-year correlation, SPY places #6 of the 13 assets tracked against MSD. Over the last 12 months SPY came out ahead by 14.8 percentage points (+5.8% against +20.6%).
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.
MSD vs SPY: side by side
| MSD (Morgan Stanley Emerging Markets Debt Fund, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +5.8% | +20.6% |
| 5-year return | +22.9% | +82.4% |
| Volatility (ann.) | 11.6% | 14.5% |
| Beta vs S&P 500 | 0.40 | 1.00 |
| Max drawdown (3Y) | -12.8% | -18.8% |
| Market cap | $0.1B | – |
| P/E (trailing) | 6.9 | – |
| Dividend yield | 9.78% | 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 | MSD | SPY |
|---|---|---|
| 2022 | -22.1% | -18.2% |
| 2023 | +19.2% | +26.2% |
| 2024 | +24.9% | +24.9% |
| 2025 | +5.6% | +17.7% |
| 2026 | +2.6% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MSD and SPY good diversifiers for each other?
Only partially. A correlation of 0.50 means MSD and SPY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between MSD and SPY?
The MSD/SPY correlation stands at 0.50 on a 3-year window (1 year: 0.65, 5 years: 0.48), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for MSD?
Only partially. A correlation of 0.50 means MSD and SPY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.50 mean?
A reading of 0.50 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: MSD correlations · SPY correlations
