ACWI vs ICLN: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI ACWI ETF (ACWI) and iShares Global Clean Energy ETF (ICLN) carry a correlation of 0.54, a moderate link. Looking through to holdings, 0.2% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and ICLN?
Across a 3-year window, the weekly returns of ACWI and ICLN correlate at 0.54, moderate. Recent behaviour matches the longer record: 0.60 over 1 year against 0.54 over 3. Stretching to 5 years gives 0.60, with an annualized covariance of 179.3 %².
Among the 119 assets we track against ACWI, ICLN ranks #85 by 3-year correlation. Neither side won the trailing year by much: +22.7% against +25.6%. The rolling one-year correlation moved between 0.37 and 0.79 over the past three years, a moderate range. Note the risk asymmetry: ICLN runs 1.7 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.
ACWI vs ICLN: side by side
| ACWI (iShares MSCI ACWI ETF) | ICLN (iShares Global Clean Energy ETF) | |
|---|---|---|
| 1-year return | +22.7% | +25.6% |
| 5-year return | +69.0% | -18.4% |
| Volatility (ann.) | 13.8% | 24.0% |
| Beta vs S&P 500 | 0.92 | 0.78 |
| Max drawdown (3Y) | -16.5% | -34.6% |
| Dividend yield | 1.44% | 1.05% |
| Expense ratio | 0.32% | 0.39% |
| Assets under management | $32.5B | $2.3B |
| Sector / category | ETF · Global | ETF · Thematic |
ACWI is a Global Large-Stock Blend fund from iShares: $32.5B under management, 1590 holdings, a 0.32% expense ratio, a 1.44% trailing dividend yield. ICLN, iShares's Miscellaneous Sector fund, carries $2.3B under management, 102 holdings, a 0.39% expense ratio, a 1.05% trailing dividend yield.
Portfolio overlap between ACWI and ICLN
The two portfolios are largely distinct. Weighing the shared positions, 0.2% of the two funds is identical, spread across 10 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in ACWI | Weight in ICLN |
|---|---|---|
| BE | 0.06% | 7.36% |
| VWS | 0.03% | 4.36% |
| EDP | 0.02% | 2.87% |
| FSLR | 0.02% | 7.87% |
| NXT | 0.02% | 6.81% |
| ORSTED | 0.01% | 1.60% |
| 9502 | 0.01% | 2.68% |
| ENLT | 0.01% | 2.04% |
| EQTL3 | 0.01% | 3.09% |
| 600900 | 0.01% | 7.64% |
Largest positions held only by ACWI: NVDA (4.64%), AAPL (4.41%), MSFT (3.35%), AMZN (2.41%), GOOGL (1.91%). Only by ICLN: ENPH (4.70%), PLUG (2.81%), SUZLON (1.99%), CWEN (1.97%), SEDG (1.87%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 10 common positions shown.
Year-by-year returns
| Year | ACWI | ICLN |
|---|---|---|
| 2022 | -18.4% | -5.4% |
| 2023 | +22.3% | -20.4% |
| 2024 | +17.4% | -25.7% |
| 2025 | +22.4% | +47.0% |
| 2026 | +14.9% | +8.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and ICLN good diversifiers for each other?
Only partially. A correlation of 0.54 means ACWI and ICLN share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between ACWI and ICLN?
Using weekly returns as of 2026-08-27: 0.54 over 3 years, with 0.60 over the last year and 0.60 over 5 years.
Is ICLN a good diversifier for ACWI?
Only partially. A correlation of 0.54 means ACWI and ICLN share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do ACWI and ICLN overlap?
The two funds share 10 holdings amounting to 0.2% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
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Related comparisons
Hubs: ACWI correlations · ICLN correlations
