ACWI vs XLU: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI ACWI ETF (ACWI) and Utilities Select Sector SPDR Fund (XLU) carry a correlation of 0.30, a moderate link. By holdings, the two funds overlap 1.4% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and XLU?
Across a 3-year window, the weekly returns of ACWI and XLU correlate at 0.30, moderate. The link has loosened recently: the 1-year correlation (0.01) runs below the 3-year figure (0.30). Stretching to 5 years gives 0.43, with an annualized covariance of 64.2 %².
By 3-year correlation, XLU places #108 of the 119 assets tracked against ACWI. Their recent paths diverged sharply: over the last 12 months ACWI outperformed by 18.6 percentage points (+22.7% for ACWI against +4.1% for XLU). The relationship is regime-dependent: the rolling one-year correlation swung between -0.01 and 0.58 over the past three years, so this pair behaves very differently depending on the market environment.
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 XLU: side by side
| ACWI (iShares MSCI ACWI ETF) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.7% | +4.1% |
| 5-year return | +69.0% | +46.3% |
| Volatility (ann.) | 13.8% | 15.8% |
| Beta vs S&P 500 | 0.92 | 0.26 |
| Max drawdown (3Y) | -16.5% | -13.1% |
| Dividend yield | 1.44% | 2.70% |
| Expense ratio | 0.32% | 0.08% |
| Assets under management | $32.5B | $23.1B |
| Sector / category | ETF · Global | Sector ETF |
ACWI, iShares's Global Large-Stock Blend fund, carries $32.5B under management, 1590 holdings, a 0.32% expense ratio, a 1.44% trailing dividend yield. XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Portfolio overlap between ACWI and XLU
The two portfolios are largely distinct: 1.4% of the funds' weight sits in the same underlying holdings (29 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in ACWI | Weight in XLU |
|---|---|---|
| NEE | 0.17% | 12.94% |
| DTE | 0.14% | 2.11% |
| SO | 0.10% | 7.45% |
| DUK | 0.09% | 7.00% |
| CEG | 0.08% | 6.58% |
| PPL | 0.06% | 1.94% |
| D | 0.06% | 4.33% |
| AEP | 0.06% | 4.94% |
| VST | 0.05% | 3.27% |
| XEL | 0.05% | 3.57% |
| SRE | 0.05% | 4.11% |
| ETR | 0.05% | 3.62% |
| EXC | 0.04% | 3.35% |
| PEG | 0.04% | 2.72% |
| ED | 0.04% | 2.93% |
Largest positions held only by ACWI: NVDA (4.64%), AAPL (4.41%), MSFT (3.35%), AMZN (2.41%), GOOGL (1.91%). Only by XLU: PNW (0.88%), AES (0.77%).
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 | XLU |
|---|---|---|
| 2022 | -18.4% | +1.4% |
| 2023 | +22.3% | -7.2% |
| 2024 | +17.4% | +23.3% |
| 2025 | +22.4% | +16.0% |
| 2026 | +14.9% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and XLU good diversifiers for each other?
A fair diversifier. At 0.30, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between ACWI and XLU?
As of 2026-08-27, the correlation of weekly returns between ACWI and XLU is 0.30 over 3 years, 0.01 over 1 year and 0.43 over 5 years.
Is XLU a good diversifier for ACWI?
A fair diversifier. At 0.30, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do ACWI and XLU overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 1.4% by weight over 29 common positions.
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Hubs: ACWI correlations · XLU correlations
