AFL vs XLF: Correlation
Measured on weekly returns over the past three years, Aflac (AFL) and Financial Select Sector SPDR Fund (XLF) carry a correlation of 0.54, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AFL and XLF?
Across a 3-year window, the weekly returns of AFL and XLF correlate at 0.54, moderate. The past 12 months show a weaker link (0.37) than the 3-year average (0.54). Stretching to 5 years gives 0.68, with an annualized covariance of 167.5 %².
Among the 32 assets we track against AFL, XLF ranks #17 by 3-year correlation. Neither side won the trailing year by much: +10.8% against +9.3%. The rolling one-year correlation moved between 0.32 and 0.74 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.
AFL vs XLF: side by side
| AFL (Aflac) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +10.8% | +9.3% |
| 5-year return | +131.3% | +64.2% |
| Volatility (ann.) | 19.2% | 16.2% |
| Beta vs S&P 500 | 0.36 | 0.84 |
| Max drawdown (3Y) | -13.6% | -15.5% |
| Market cap | $58.4B | – |
| P/E (trailing) | 12.6 | – |
| Dividend yield | 2.03% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | Financials | Sector ETF |
XLF is a Financial fund from State Street Investment Management: $57.9B under management, 77 holdings, a 0.08% expense ratio, a 1.42% trailing dividend yield.
Year-by-year returns
| Year | AFL | XLF |
|---|---|---|
| 2022 | +26.4% | -10.6% |
| 2023 | +17.4% | +12.0% |
| 2024 | +28.1% | +30.6% |
| 2025 | +8.9% | +14.9% |
| 2026 | +7.4% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLF holds AFL at a 0.65% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are AFL and XLF good diversifiers for each other?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between AFL and XLF?
Using weekly returns as of 2026-08-27: 0.54 over 3 years, with 0.37 over the last year and 0.68 over 5 years.
Is XLF a good diversifier for AFL?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.54 mean?
A reading of 0.54 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: AFL correlations · XLF correlations
