SPY vs WIA: Correlation
How closely do SPDR S&P 500 ETF Trust (SPY) and Western Asset Inflation-Linked Income Fund (WIA) trade together? Their weekly returns over three years give a correlation of 0.40, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and WIA?
On 3 years of weekly data the SPY/WIA correlation comes out at 0.40, moderate. The link has tightened recently: the 1-year correlation (0.53) runs above the 3-year figure (0.40). The 5-year figure is 0.48, and annualized covariance runs at 42.0 %².
Within SPY's tracked universe of 4755 assets, WIA comes in at #1193 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 18.5 percentage points (+20.6% for SPY against +2.1% for WIA). Note the risk asymmetry: SPY runs 2.0 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 WIA: side by side
| SPY (SPDR S&P 500 ETF Trust) | WIA (Western Asset Inflation-Linked Income Fund) | |
|---|---|---|
| 1-year return | +20.6% | +2.1% |
| 5-year return | +82.4% | -3.9% |
| Volatility (ann.) | 14.5% | 7.2% |
| Beta vs S&P 500 | 1.00 | 0.20 |
| Max drawdown (3Y) | -18.8% | -6.4% |
| Market cap | – | $0.2B |
| P/E (trailing) | – | 14.0 |
| Dividend yield | 1.01% | 7.83% |
| 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 | WIA |
|---|---|---|
| 2022 | -18.2% | -25.8% |
| 2023 | +26.2% | +5.0% |
| 2024 | +24.9% | +6.1% |
| 2025 | +17.7% | +11.4% |
| 2026 | +13.7% | +1.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and WIA good diversifiers for each other?
A fair diversifier. At 0.40, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between SPY and WIA?
Using weekly returns as of 2026-08-27: 0.40 over 3 years, with 0.53 over the last year and 0.48 over 5 years.
Is WIA a good diversifier for SPY?
A fair diversifier. At 0.40, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.40 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.
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Related comparisons
Hubs: SPY correlations · WIA correlations
