PPT vs SPY: Correlation
Franklin Premier Income Trust Shares of Beneficial Interest (PPT) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.41.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PPT and SPY?
Over the past 3 years, PPT and SPY moved with a correlation of 0.41, which is moderate. The relationship has been stable: the 1-year correlation (0.49) sits close to the 3-year figure. Over 5 years the correlation is 0.47, and the annualized covariance of weekly returns is 50.7 %².
By 3-year correlation, SPY places #7 of the 12 assets tracked against PPT. Correlation aside, the last 12 months split them widely, with SPY ahead by 18.2 points (+2.4% versus +20.6%). Note the risk asymmetry: SPY runs 1.7 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
PPT vs SPY: side by side
| PPT (Franklin Premier Income Trust Shares of Beneficial Interest) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +2.4% | +20.6% |
| 5-year return | +15.6% | +82.4% |
| Volatility (ann.) | 8.6% | 14.5% |
| Beta vs S&P 500 | 0.24 | 1.00 |
| Max drawdown (3Y) | -5.9% | -18.8% |
| Market cap | – | – |
| P/E (trailing) | 11.1 | – |
| Dividend yield | 9.07% | 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 | PPT | SPY |
|---|---|---|
| 2022 | -7.7% | -18.2% |
| 2023 | +7.4% | +26.2% |
| 2024 | +8.8% | +24.9% |
| 2025 | +8.4% | +17.7% |
| 2026 | +3.4% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PPT and SPY good diversifiers for each other?
Reasonably. At 0.41, PPT and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between PPT and SPY?
As of 2026-08-27, the correlation of weekly returns between PPT and SPY is 0.41 over 3 years, 0.49 over 1 year and 0.47 over 5 years.
Is SPY a good diversifier for PPT?
Reasonably. At 0.41, PPT and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.41 mean?
On the −1 to +1 scale, 0.41 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: PPT correlations · SPY correlations
