SPY vs TRGP: Correlation
How closely do SPDR S&P 500 ETF Trust (SPY) and Targa Resources (TRGP) trade together? Their weekly returns over three years give a correlation of 0.20, which is weak.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and TRGP?
Over the past 3 years, SPY and TRGP moved with a correlation of 0.20, which is weak. The link has loosened recently: the 1-year correlation (-0.37) runs below the 3-year figure (0.20). Over 5 years the correlation is 0.31, and the annualized covariance of weekly returns is 91.4 %².
By 3-year correlation, TRGP places #3291 of the 4755 assets tracked against SPY. The last year tells two different stories: TRGP led by 58.1 percentage points, +20.6% for SPY against +78.7% for TRGP. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.36 to 0.58. Note the risk asymmetry: TRGP runs 2.2 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.
SPY vs TRGP: side by side
| SPY (SPDR S&P 500 ETF Trust) | TRGP (Targa Resources) | |
|---|---|---|
| 1-year return | +20.6% | +78.7% |
| 5-year return | +82.4% | +626.8% |
| Volatility (ann.) | 14.5% | 31.5% |
| Beta vs S&P 500 | 1.00 | 0.44 |
| Max drawdown (3Y) | -18.8% | -31.6% |
| Market cap | – | $62.0B |
| P/E (trailing) | – | 28.1 |
| Dividend yield | 1.01% | 1.53% |
| Expense ratio | 0.09% | – |
| Assets under management | $795.3B | – |
| Sector / category | ETF · US Large Cap | Energy |
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 | TRGP |
|---|---|---|
| 2022 | -18.2% | +43.7% |
| 2023 | +26.2% | +21.0% |
| 2024 | +24.9% | +110.1% |
| 2025 | +17.7% | +5.7% |
| 2026 | +13.7% | +58.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
TRGP represents 0.1% of SPY's portfolio, so part of any move in SPY is TRGP itself, and the correlation between them is partly mechanical.
Are SPY and TRGP good diversifiers for each other?
A fair diversifier. At 0.20, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between SPY and TRGP?
Using weekly returns as of 2026-08-27: 0.20 over 3 years, with -0.37 over the last year and 0.31 over 5 years.
Is TRGP a good diversifier for SPY?
A fair diversifier. At 0.20, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.20 mean?
A reading of 0.20 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
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Related comparisons
Hubs: SPY correlations · TRGP correlations
