SPY vs VKQ: Correlation
How closely do SPDR S&P 500 ETF Trust (SPY) and Invesco Municipal Trust (VKQ) trade together? Their weekly returns over three years give a correlation of 0.37, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and VKQ?
On 3 years of weekly data the SPY/VKQ correlation comes out at 0.37, moderate. The past 12 months show a tighter link (0.57) than the 3-year average (0.37). The 5-year figure is 0.45, and annualized covariance runs at 61.8 %².
By 3-year correlation, VKQ places #1506 of the 4755 assets tracked against SPY. Their 12-month results are close: +20.6% for SPY against +15.9% for VKQ.
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 VKQ: side by side
| SPY (SPDR S&P 500 ETF Trust) | VKQ (Invesco Municipal Trust) | |
|---|---|---|
| 1-year return | +20.6% | +15.9% |
| 5-year return | +82.4% | -4.8% |
| Volatility (ann.) | 14.5% | 11.7% |
| Beta vs S&P 500 | 1.00 | 0.30 |
| Max drawdown (3Y) | -18.8% | -11.7% |
| Market cap | – | – |
| P/E (trailing) | – | 32.7 |
| Dividend yield | 1.01% | 7.72% |
| 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 | VKQ |
|---|---|---|
| 2022 | -18.2% | -22.3% |
| 2023 | +26.2% | +0.9% |
| 2024 | +24.9% | +9.7% |
| 2025 | +17.7% | +6.5% |
| 2026 | +13.7% | +6.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and VKQ good diversifiers for each other?
A fair diversifier. At 0.37, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between SPY and VKQ?
As of 2026-08-27, the correlation of weekly returns between SPY and VKQ is 0.37 over 3 years, 0.57 over 1 year and 0.45 over 5 years.
Is VKQ a good diversifier for SPY?
A fair diversifier. At 0.37, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.37 mean?
A reading of 0.37 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
$ curl https://www.pairbook.io/api/v1/pairs/spy-vs-vkq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/spy-vs-vkq/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: SPY correlations · VKQ correlations
