AIG vs XLF: Correlation
Measured on weekly returns over the past three years, American International Group (AIG) and Financial Select Sector SPDR Fund (XLF) carry a correlation of 0.57, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AIG and XLF?
Over the past 3 years, AIG and XLF moved with a correlation of 0.57, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.39 versus 0.57 over 3 years. Over 5 years the correlation is 0.71, and the annualized covariance of weekly returns is 184.6 %².
Among the 28 assets we track against AIG, XLF ranks #9 by 3-year correlation. On 12-month performance XLF holds a 13.9-point edge, -4.6% against +9.3%. The rolling one-year correlation moved between 0.36 and 0.84 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.
AIG vs XLF: side by side
| AIG (American International Group) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -4.6% | +9.3% |
| 5-year return | +58.9% | +64.2% |
| Volatility (ann.) | 20.1% | 16.2% |
| Beta vs S&P 500 | 0.46 | 0.84 |
| Max drawdown (3Y) | -17.0% | -15.5% |
| Market cap | $40.1B | – |
| P/E (trailing) | 14.0 | – |
| Dividend yield | 2.40% | 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 | AIG | XLF |
|---|---|---|
| 2022 | +13.8% | -10.6% |
| 2023 | +9.8% | +12.0% |
| 2024 | +9.8% | +30.6% |
| 2025 | +20.0% | +14.9% |
| 2026 | -9.3% | +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 AIG at a 0.5% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are AIG and XLF good diversifiers for each other?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between AIG and XLF?
As of 2026-08-27, the correlation of weekly returns between AIG and XLF is 0.57 over 3 years, 0.39 over 1 year and 0.71 over 5 years.
Is XLF a good diversifier for AIG?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.57 mean?
A reading of 0.57 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: AIG correlations · XLF correlations
