PFG vs SPY: Correlation
Principal Financial Group (PFG) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.56.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PFG and SPY?
Across a 3-year window, the weekly returns of PFG and SPY correlate at 0.56, moderate. The link has loosened recently: the 1-year correlation (0.43) runs below the 3-year figure (0.56). Stretching to 5 years gives 0.61, with an annualized covariance of 184.3 %².
Among the 32 assets we track against PFG, SPY ranks #16 by 3-year correlation. The last year tells two different stories: PFG led by 23.3 percentage points, +43.9% for PFG against +20.6% for SPY. The rolling one-year correlation moved between 0.36 and 0.72 over the past three years, a moderate range. Risk is not evenly split, since PFG carries 1.6 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.
PFG vs SPY: side by side
| PFG (Principal Financial Group) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +43.9% | +20.6% |
| 5-year return | +99.7% | +82.4% |
| Volatility (ann.) | 22.9% | 14.5% |
| Beta vs S&P 500 | 0.88 | 1.00 |
| Max drawdown (3Y) | -22.4% | -18.8% |
| Market cap | $24.0B | – |
| P/E (trailing) | 16.0 | – |
| Dividend yield | 2.84% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Financials | 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 | PFG | SPY |
|---|---|---|
| 2022 | +20.1% | -18.2% |
| 2023 | -2.8% | +26.2% |
| 2024 | +1.9% | +24.9% |
| 2025 | +18.4% | +17.7% |
| 2026 | +29.3% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PFG and SPY good diversifiers for each other?
To a limited degree. At 0.56 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between PFG and SPY?
As of 2026-08-27, the correlation of weekly returns between PFG and SPY is 0.56 over 3 years, 0.43 over 1 year and 0.61 over 5 years.
Is SPY a good diversifier for PFG?
To a limited degree. At 0.56 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.56 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: PFG correlations · SPY correlations
