SPY vs TEI: Correlation
Measured on weekly returns over the past three years, SPDR S&P 500 ETF Trust (SPY) and Templeton Emerging Markets Income Fund, Inc. (TEI) carry a correlation of 0.53, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and TEI?
Across a 3-year window, the weekly returns of SPY and TEI correlate at 0.53, moderate. The relationship has been stable: the 1-year correlation (0.58) sits close to the 3-year figure. Stretching to 5 years gives 0.48, with an annualized covariance of 121.3 %².
By 3-year correlation, TEI places #360 of the 4755 assets tracked against SPY. The trailing year gives TEI the advantage: +20.6% versus +27.3%, a 6.7-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.
SPY vs TEI: side by side
| SPY (SPDR S&P 500 ETF Trust) | TEI (Templeton Emerging Markets Income Fund, Inc.) | |
|---|---|---|
| 1-year return | +20.6% | +27.3% |
| 5-year return | +82.4% | +54.4% |
| Volatility (ann.) | 14.5% | 15.8% |
| Beta vs S&P 500 | 1.00 | 0.58 |
| Max drawdown (3Y) | -18.8% | -14.5% |
| Market cap | – | $0.3B |
| P/E (trailing) | – | 3.4 |
| Dividend yield | 1.01% | 8.36% |
| Expense ratio | 0.09% | – |
| Assets under management | $795.3B | – |
| Sector / category | ETF · US Large Cap | US Listed |
On the fund side, SPY sits in the Large Blend category at State Street Investment Management, with $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | SPY | TEI |
|---|---|---|
| 2022 | -18.2% | -15.5% |
| 2023 | +26.2% | +3.8% |
| 2024 | +24.9% | +11.9% |
| 2025 | +17.7% | +45.6% |
| 2026 | +13.7% | +12.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and TEI good diversifiers for each other?
Somewhat, no more. With 0.53 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SPY and TEI?
The SPY/TEI correlation stands at 0.53 on a 3-year window (1 year: 0.58, 5 years: 0.48), computed from weekly returns as of 2026-08-27.
Is TEI a good diversifier for SPY?
Somewhat, no more. With 0.53 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.53 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
$ curl https://www.pairbook.io/api/v1/pairs/spy-vs-tei.json
Embed this badge (it refreshes with the data), with attribution:
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Related comparisons
Hubs: SPY correlations · TEI correlations
