ACWI vs XLP: Correlation & Overlap
iShares MSCI ACWI ETF (ACWI) and Consumer Staples Select Sector SPDR Fund (XLP) show a moderate relationship: their 3-year correlation of weekly returns is 0.37. By holdings, the two funds overlap 3.0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and XLP?
Over the past 3 years, ACWI and XLP moved with a correlation of 0.37, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.14 versus 0.37 over 3 years. Over 5 years the correlation is 0.52, and the annualized covariance of weekly returns is 56.3 %².
By 3-year correlation, XLP places #106 of the 119 assets tracked against ACWI. On 12-month performance ACWI holds a 14.4-point edge, +22.7% against +8.3%. Across three years, the rolling one-year figure varied moderately, from 0.15 to 0.64.
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 XLP: side by side
| ACWI (iShares MSCI ACWI ETF) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.7% | +8.3% |
| 5-year return | +69.0% | +34.7% |
| Volatility (ann.) | 13.8% | 11.1% |
| Beta vs S&P 500 | 0.92 | 0.23 |
| Max drawdown (3Y) | -16.5% | -9.7% |
| Dividend yield | 1.44% | 2.58% |
| Expense ratio | 0.32% | 0.08% |
| Assets under management | $32.5B | $14.6B |
| 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. On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Portfolio overlap between ACWI and XLP
The two portfolios are largely distinct. Weighing the shared positions, 3.0% of the two funds is identical, spread across 30 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in ACWI | Weight in XLP |
|---|---|---|
| WMT | 0.44% | 9.62% |
| COST | 0.41% | 8.92% |
| KO | 0.34% | 7.34% |
| PG | 0.32% | 7.10% |
| PM | 0.29% | 6.36% |
| PEP | 0.19% | 4.39% |
| MO | 0.11% | 4.21% |
| DG | 0.09% | 1.70% |
| EL | 0.08% | 1.63% |
| MDLZ | 0.08% | 4.37% |
| TGT | 0.07% | 4.67% |
| CL | 0.07% | 4.56% |
| MNST | 0.07% | 4.28% |
| ADM | 0.05% | 2.42% |
| KMB | 0.04% | 2.30% |
Largest positions held only by ACWI: NVDA (4.64%), AAPL (4.41%), MSFT (3.35%), AMZN (2.41%), GOOGL (1.91%). Only by XLP: SJM (0.88%), HRL (0.43%), TAP (0.42%), BF.B (0.30%), IXRU6 (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 | XLP |
|---|---|---|
| 2022 | -18.4% | -0.8% |
| 2023 | +22.3% | -0.8% |
| 2024 | +17.4% | +12.2% |
| 2025 | +22.4% | +1.5% |
| 2026 | +14.9% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and XLP good diversifiers for each other?
A fair diversifier. At 0.37, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between ACWI and XLP?
Using weekly returns as of 2026-08-27: 0.37 over 3 years, with 0.14 over the last year and 0.52 over 5 years.
Is XLP a good diversifier for ACWI?
A fair diversifier. At 0.37, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do ACWI and XLP overlap?
The two funds share 30 holdings amounting to 3.0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/acwi-vs-xlp.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/acwi-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ACWI correlations · XLP correlations
