SPY vs SWZ: Correlation
Measured on weekly returns over the past three years, SPDR S&P 500 ETF Trust (SPY) and Total Return Securities Fund (SWZ) carry a correlation of 0.43, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and SWZ?
On 3 years of weekly data the SPY/SWZ correlation comes out at 0.43, moderate. Little has changed lately, as the 1-year reading of 0.44 lands near the 3-year figure. The 5-year figure is 0.63, and annualized covariance runs at 85.4 %².
Within SPY's tracked universe of 4755 assets, SWZ comes in at #912 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 21.8 percentage points (+20.6% for SPY against -1.2% for SWZ).
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.
SPY vs SWZ: side by side
| SPY (SPDR S&P 500 ETF Trust) | SWZ (Total Return Securities Fund) | |
|---|---|---|
| 1-year return | +20.6% | -1.2% |
| 5-year return | +82.4% | +13.9% |
| Volatility (ann.) | 14.5% | 13.7% |
| Beta vs S&P 500 | 1.00 | 0.41 |
| Max drawdown (3Y) | -18.8% | -15.5% |
| Market cap | – | – |
| P/E (trailing) | – | 4.3 |
| Dividend yield | 1.01% | 2.45% |
| Expense ratio | 0.09% | – |
| Assets under management | $795.3B | – |
| Sector / category | ETF · US Large Cap | US Listed |
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 | SPY | SWZ |
|---|---|---|
| 2022 | -18.2% | -17.7% |
| 2023 | +26.2% | +15.5% |
| 2024 | +24.9% | -2.5% |
| 2025 | +17.7% | +24.1% |
| 2026 | +13.7% | -3.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and SWZ good diversifiers for each other?
Reasonably. At 0.43, SPY and SWZ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between SPY and SWZ?
As of 2026-08-27, the correlation of weekly returns between SPY and SWZ is 0.43 over 3 years, 0.44 over 1 year and 0.63 over 5 years.
Is SWZ a good diversifier for SPY?
Reasonably. At 0.43, SPY and SWZ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.43 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.
Use this data
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Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/spy-vs-swz/)
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Related comparisons
Hubs: SPY correlations · SWZ correlations
