SPY vs WDI: Correlation
SPDR S&P 500 ETF Trust (SPY) and Western Asset Diversified Income Fund (WDI) show a moderate relationship: their 3-year correlation of weekly returns is 0.56.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and WDI?
Over the past 3 years, SPY and WDI moved with a correlation of 0.56, which is moderate. The relationship has been stable: the 1-year correlation (0.55) sits close to the 3-year figure. Over 5 years the correlation is 0.60, and the annualized covariance of weekly returns is 95.2 %².
Within SPY's tracked universe of 4755 assets, WDI comes in at #265 by 3-year correlation. The last year tells two different stories: SPY led by 22.9 percentage points, +20.6% for SPY against -2.3% for WDI.
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 WDI: side by side
| SPY (SPDR S&P 500 ETF Trust) | WDI (Western Asset Diversified Income Fund) | |
|---|---|---|
| 1-year return | +20.6% | -2.3% |
| 5-year return | +82.4% | +14.7% |
| Volatility (ann.) | 14.5% | 11.7% |
| Beta vs S&P 500 | 1.00 | 0.46 |
| Max drawdown (3Y) | -18.8% | -14.1% |
| Market cap | – | $0.7B |
| P/E (trailing) | – | 9.3 |
| Dividend yield | 1.01% | 0.00% |
| 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 | WDI |
|---|---|---|
| 2022 | -18.2% | -23.3% |
| 2023 | +26.2% | +25.1% |
| 2024 | +24.9% | +13.9% |
| 2025 | +17.7% | +10.7% |
| 2026 | +13.7% | +0.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and WDI good diversifiers for each other?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SPY and WDI?
The SPY/WDI correlation stands at 0.56 on a 3-year window (1 year: 0.55, 5 years: 0.60), computed from weekly returns as of 2026-08-27.
Is WDI a good diversifier for SPY?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.56 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-wdi.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/spy-vs-wdi/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: SPY correlations · WDI correlations
