SPY vs TSM: Correlation
How closely do SPDR S&P 500 ETF Trust (SPY) and Taiwan Semiconductor Manufacturing Company Ltd. (TSM) trade together? Their weekly returns over three years give a correlation of 0.66, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and TSM?
Over the past 3 years, SPY and TSM moved with a correlation of 0.66, which is strong. The past 12 months show a weaker link (0.55) than the 3-year average (0.66). Over 5 years the correlation is 0.58, and the annualized covariance of weekly returns is 331.3 %².
By 3-year correlation, TSM places #119 of the 4755 assets tracked against SPY. Correlation aside, the last 12 months split them widely, with TSM ahead by 59.9 points (+20.6% versus +80.5%). One caveat on sizing: TSM is 2.4 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 TSM: side by side
| SPY (SPDR S&P 500 ETF Trust) | TSM (Taiwan Semiconductor Manufacturing Company Ltd.) | |
|---|---|---|
| 1-year return | +20.6% | +80.5% |
| 5-year return | +82.4% | +289.6% |
| Volatility (ann.) | 14.5% | 34.9% |
| Beta vs S&P 500 | 1.00 | 1.59 |
| Max drawdown (3Y) | -18.8% | -36.8% |
| Market cap | – | $2,216.2B |
| P/E (trailing) | – | 31.1 |
| Dividend yield | 1.01% | 6.22% |
| Expense ratio | 0.09% | – |
| Assets under management | $795.3B | – |
| Sector / category | ETF · US Large Cap | US Listed |
SPY, State Street Investment Management's Large Blend fund, carries $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | SPY | TSM |
|---|---|---|
| 2022 | -18.2% | -36.7% |
| 2023 | +26.2% | +42.3% |
| 2024 | +24.9% | +92.6% |
| 2025 | +17.7% | +55.9% |
| 2026 | +13.7% | +41.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and TSM good diversifiers for each other?
To a limited degree. At 0.66 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 SPY and TSM?
The SPY/TSM correlation stands at 0.66 on a 3-year window (1 year: 0.55, 5 years: 0.58), computed from weekly returns as of 2026-08-27.
Is TSM a good diversifier for SPY?
To a limited degree. At 0.66 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 0.66 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-tsm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/spy-vs-tsm/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: SPY correlations · TSM correlations
