Market Research Data

SDY Correlation & Overlap

Fund Strategy Analysis

SPDR S&P Dividend ETF (SDY) is a key instrument in the Dividend Equity category. Data regarding SDY is frequently analyzed by investors planning tax loss harvesting strategies, specifically those seeking to maintain Dividend Equity exposure while navigating IRS wash sale regulations.

Note: This page summarizes historical similarity metrics and does not assess tax treatment or regulatory outcomes.

Top Correlated ETFs

Dividend Equity
NOBL
CORR ≥ 0.95*
95.0%
Correlation
A holdings overlap of roughly 60% suggests that NOBL and SDY maintain aligned market exposure. This metric is frequently used to assess the potential for maintaining economic position while realizing a tax loss.
Overlap: ~60%
Yahoo Finance ↗View NOBL Analysis →
VIG
CORR ≥ 0.95*
92.0%
Correlation
VIG and SDY share a specific relationship in their market behavior. The key distinction for tax purposes often lies in their divergent index methodologies despite high correlation.
Overlap: ~35%
Yahoo Finance ↗View VIG Analysis →
DVY
CORR ≥ 0.95*
90.0%
Correlation
A holdings overlap of roughly 40% suggests that DVY and SDY maintain aligned market exposure. This metric is frequently used to assess the potential for maintaining economic position while realizing a tax loss.
Overlap: ~40%
Yahoo Finance ↗DVY Data Coming Soon

Note on Overlap: Estimates are based on the most recent publicly disclosed holdings. Leveraged/Inverse products often use swaps resulting in low physical overlap despite high correlation.

Benchmark Similarity: ETFs tracking similar broad-market or sector-specific benchmarks often exhibit extremely high correlation. Investors typically review additional factors such as index methodology when evaluating similarity.

* Correlation calculated using 2-year daily price returns.

Wash Sale Re-Entry Date (Reference Tool)

If you sold SDY at a loss, U.S. wash sale rules generally restrict repurchasing the same or a substantially identical security within 30 days.

*For informational purposes only. Consult a tax professional regarding IRC §1091. This tool calculates the 31st day following a sale.

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What is Correlation?

Correlation measures the historical relationship between two assets. A value of 1.00 (100%) means they move perfectly in sync. For tax loss harvesting, high correlation is generally desired to stay in the market while realizing a loss.

Index Methodology

Under the wash sale rule, "substantially identical" assets are disallowed for loss claims. Many investors argue that ETFs tracking different indices (e.g., S&P 500 vs. Russell 1000) are not substantially identical.

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