ACWI vs XLB: Correlation & Overlap
How closely do iShares MSCI ACWI ETF (ACWI) and Materials Select Sector SPDR Fund (XLB) trade together? Their weekly returns over three years give a correlation of 0.70, which is strong. The two funds also share 1.1% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and XLB?
On 3 years of weekly data the ACWI/XLB correlation comes out at 0.70, strong. The past 12 months show a weaker link (0.50) than the 3-year average (0.70). The 5-year figure is 0.80, and annualized covariance runs at 162.1 %².
Among the 119 assets we track against ACWI, XLB ranks #62 by 3-year correlation. On 12-month performance ACWI holds a 5.1-point edge, +22.7% against +17.6%. The rolling one-year correlation moved between 0.51 and 0.92 over the past three years, a moderate range.
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 XLB: side by side
| ACWI (iShares MSCI ACWI ETF) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.7% | +17.6% |
| 5-year return | +69.0% | +36.9% |
| Volatility (ann.) | 13.8% | 16.7% |
| Beta vs S&P 500 | 0.92 | 0.72 |
| Max drawdown (3Y) | -16.5% | -23.2% |
| Dividend yield | 1.44% | 1.68% |
| Expense ratio | 0.32% | 0.08% |
| Assets under management | $32.5B | $8.3B |
| Sector / category | ETF · Global | Sector ETF |
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. XLB is a Natural Resources fund from State Street Investment Management: $8.3B under management, 26 holdings, a 0.08% expense ratio, a 1.68% trailing dividend yield.
Portfolio overlap between ACWI and XLB
The two portfolios are largely distinct, with 23 holdings in common adding up to 1.1% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in ACWI | Weight in XLB |
|---|---|---|
| LIN | 0.22% | 12.94% |
| NEM | 0.14% | 8.02% |
| FCX | 0.11% | 6.48% |
| SHW | 0.08% | 4.87% |
| ECL | 0.07% | 4.80% |
| APD | 0.06% | 4.71% |
| CRH | 0.06% | 4.12% |
| CTVA | 0.05% | 4.72% |
| NUE | 0.05% | 4.28% |
| PPG | 0.03% | 3.32% |
| VMC | 0.03% | 4.26% |
| STLD | 0.03% | 3.73% |
| SW | 0.03% | 3.39% |
| MLM | 0.03% | 4.09% |
| BALL | 0.02% | 2.22% |
Largest positions held only by ACWI: NVDA (4.64%), AAPL (4.41%), MSFT (3.35%), AMZN (2.41%), GOOGL (1.91%). Only by XLB: ALB (2.07%), MOS (1.00%), IXDU6 (0.00%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | ACWI | XLB |
|---|---|---|
| 2022 | -18.4% | -12.3% |
| 2023 | +22.3% | +12.5% |
| 2024 | +17.4% | +0.1% |
| 2025 | +22.4% | +9.9% |
| 2026 | +14.9% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and XLB good diversifiers for each other?
To a limited degree. At 0.70 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between ACWI and XLB?
Using weekly returns as of 2026-08-27: 0.70 over 3 years, with 0.50 over the last year and 0.80 over 5 years.
Is XLB a good diversifier for ACWI?
To a limited degree. At 0.70 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do ACWI and XLB overlap?
1.1% by weight, across 23 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
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Related comparisons
Hubs: ACWI correlations · XLB correlations
