ACWI vs XLE: Correlation & Overlap
iShares MSCI ACWI ETF (ACWI) and Energy Select Sector SPDR Fund (XLE) show a weak relationship: their 3-year correlation of weekly returns is 0.16. Looking through to holdings, 2.2% 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 XLE?
Across a 3-year window, the weekly returns of ACWI and XLE correlate at 0.16, weak. The past 12 months show a weaker link (-0.41) than the 3-year average (0.16). Stretching to 5 years gives 0.27, with an annualized covariance of 52.4 %².
By 3-year correlation, XLE places #109 of the 119 assets tracked against ACWI. Correlation aside, the last 12 months split them widely, with XLE ahead by 21.3 points (+22.7% versus +44.0%). This link changes with the market regime, having swung between -0.43 and 0.55 on a rolling one-year basis. Risk is not evenly split, since XLE carries 1.7 times the volatility of the other side.
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 XLE: side by side
| ACWI (iShares MSCI ACWI ETF) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.7% | +44.0% |
| 5-year return | +69.0% | +206.7% |
| Volatility (ann.) | 13.8% | 23.1% |
| Beta vs S&P 500 | 0.92 | 0.27 |
| Max drawdown (3Y) | -16.5% | -20.1% |
| Dividend yield | 1.44% | 2.55% |
| Expense ratio | 0.32% | 0.08% |
| Assets under management | $32.5B | $39.2B |
| Sector / category | ETF · Global | Sector ETF |
On the fund side, ACWI sits in the Global Large-Stock Blend category at iShares, with $32.5B under management, 1590 holdings, a 0.32% expense ratio, a 1.44% trailing dividend yield. XLE is an Equity Energy fund from State Street Investment Management: $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% trailing dividend yield.
Portfolio overlap between ACWI and XLE
The two portfolios are largely distinct: 2.2% of the funds' weight sits in the same underlying holdings (21 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in ACWI | Weight in XLE |
|---|---|---|
| XOM | 0.63% | 20.03% |
| CVX | 0.35% | 14.84% |
| COP | 0.15% | 6.30% |
| MPC | 0.10% | 5.40% |
| VLO | 0.10% | 5.05% |
| WMB | 0.09% | 3.84% |
| PSX | 0.09% | 5.37% |
| SLB | 0.08% | 4.46% |
| EOG | 0.07% | 4.24% |
| TRGP | 0.06% | 3.74% |
| KMI | 0.06% | 3.72% |
| OKE | 0.06% | 3.55% |
| BKR | 0.06% | 3.65% |
| DVN | 0.05% | 3.20% |
| EQT | 0.04% | 2.03% |
Largest positions held only by ACWI: NVDA (4.64%), AAPL (4.41%), MSFT (3.35%), AMZN (2.41%), GOOGL (1.91%). Only by XLE: IXPU6 (0.01%).
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 | XLE |
|---|---|---|
| 2022 | -18.4% | +64.3% |
| 2023 | +22.3% | -0.6% |
| 2024 | +17.4% | +5.6% |
| 2025 | +22.4% | +7.9% |
| 2026 | +14.9% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and XLE good diversifiers for each other?
Yes: at 0.16, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between ACWI and XLE?
Using weekly returns as of 2026-08-27: 0.16 over 3 years, with -0.41 over the last year and 0.27 over 5 years.
Is XLE a good diversifier for ACWI?
Yes: at 0.16, the two have gone their own ways historically, which is what genuine diversification looks like.
How much do ACWI and XLE overlap?
The two funds share 21 holdings amounting to 2.2% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
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Hubs: ACWI correlations · XLE correlations
