ACWI vs XLI: Correlation & Overlap
iShares MSCI ACWI ETF (ACWI) and Industrial Select Sector SPDR Fund (XLI) show a very strong relationship: their 3-year correlation of weekly returns is 0.83. The two funds also share 5.3% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and XLI?
Over the past 3 years, ACWI and XLI moved with a correlation of 0.83, which is very strong, meaning they move nearly in lockstep. The link has loosened recently: the 1-year correlation (0.68) runs below the 3-year figure (0.83). Over 5 years the correlation is 0.86, and the annualized covariance of weekly returns is 180.4 %².
Among the 119 assets we track against ACWI, XLI ranks #34 by 3-year correlation. Neither side won the trailing year by much: +22.7% against +18.3%. The link looks structural: the rolling one-year correlation barely moved, holding between 0.68 and 0.92.
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 XLI: side by side
| ACWI (iShares MSCI ACWI ETF) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.7% | +18.3% |
| 5-year return | +69.0% | +84.0% |
| Volatility (ann.) | 13.8% | 15.7% |
| Beta vs S&P 500 | 0.92 | 0.89 |
| Max drawdown (3Y) | -16.5% | -18.5% |
| Dividend yield | 1.44% | 1.15% |
| Expense ratio | 0.32% | 0.08% |
| Assets under management | $32.5B | $32.9B |
| 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. XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Portfolio overlap between ACWI and XLI
The two portfolios are largely distinct. Weighing the shared positions, 5.3% of the two funds is identical, spread across 77 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in ACWI | Weight in XLI |
|---|---|---|
| CAT | 0.37% | 6.68% |
| GE | 0.35% | 6.52% |
| RTX | 0.27% | 5.04% |
| GEV | 0.25% | 4.52% |
| BA | 0.23% | 2.95% |
| UNP | 0.18% | 3.25% |
| ETN | 0.16% | 2.87% |
| DE | 0.15% | 2.81% |
| PH | 0.13% | 2.31% |
| UBER | 0.13% | 2.82% |
| LMT | 0.11% | 2.02% |
| ADP | 0.11% | 1.98% |
| HWM | 0.10% | 1.90% |
| TT | 0.10% | 1.81% |
| MMM | 0.09% | 1.66% |
Largest positions held only by ACWI: NVDA (4.64%), AAPL (4.41%), MSFT (3.35%), AMZN (2.41%), GOOGL (1.91%). Only by XLI: LUV (0.35%), SWK (0.27%), GNRC (0.21%), HII (0.21%), BLDR (0.13%).
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 | XLI |
|---|---|---|
| 2022 | -18.4% | -5.6% |
| 2023 | +22.3% | +18.1% |
| 2024 | +17.4% | +17.3% |
| 2025 | +22.4% | +19.3% |
| 2026 | +14.9% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and XLI good diversifiers for each other?
Not really. At 0.83, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between ACWI and XLI?
The ACWI/XLI correlation stands at 0.83 on a 3-year window (1 year: 0.68, 5 years: 0.86), computed from weekly returns as of 2026-08-27.
Is XLI a good diversifier for ACWI?
Not really. At 0.83, the two trade almost as one position, and owning both buys little extra protection.
How much do ACWI and XLI overlap?
5.3% by weight, across 77 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/acwi-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/acwi-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ACWI correlations · XLI correlations
