SPY vs WEA: Correlation
Measured on weekly returns over the past three years, SPDR S&P 500 ETF Trust (SPY) and Western Asset Bond Fund Share of Beneficial Interest (WEA) carry a correlation of 0.41, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and WEA?
Across a 3-year window, the weekly returns of SPY and WEA correlate at 0.41, moderate. The past 12 months show a tighter link (0.59) than the 3-year average (0.41). Stretching to 5 years gives 0.48, with an annualized covariance of 61.4 %².
Within SPY's tracked universe of 4755 assets, WEA comes in at #1096 by 3-year correlation. The last year tells two different stories: SPY led by 18.4 percentage points, +20.6% for SPY against +2.2% for WEA.
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 WEA: side by side
| SPY (SPDR S&P 500 ETF Trust) | WEA (Western Asset Bond Fund Share of Beneficial Interest) | |
|---|---|---|
| 1-year return | +20.6% | +2.2% |
| 5-year return | +82.4% | +4.5% |
| Volatility (ann.) | 14.5% | 10.5% |
| Beta vs S&P 500 | 1.00 | 0.29 |
| Max drawdown (3Y) | -18.8% | -11.4% |
| Market cap | – | – |
| P/E (trailing) | – | 12.6 |
| Dividend yield | 1.01% | 4.03% |
| 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 | WEA |
|---|---|---|
| 2022 | -18.2% | -20.2% |
| 2023 | +26.2% | +9.6% |
| 2024 | +24.9% | +7.7% |
| 2025 | +17.7% | +10.6% |
| 2026 | +13.7% | -0.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and WEA good diversifiers for each other?
Reasonably. At 0.41, SPY and WEA keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between SPY and WEA?
The SPY/WEA correlation stands at 0.41 on a 3-year window (1 year: 0.59, 5 years: 0.48), computed from weekly returns as of 2026-08-27.
Is WEA a good diversifier for SPY?
Reasonably. At 0.41, SPY and WEA keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.41 mean?
A reading of 0.41 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-wea.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/spy-vs-wea/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: SPY correlations · WEA correlations
