AON vs XLF: Correlation
How closely do Aon plc (AON) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.42, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AON and XLF?
On 3 years of weekly data the AON/XLF correlation comes out at 0.42, moderate. Little has changed lately, as the 1-year reading of 0.51 lands near the 3-year figure. The 5-year figure is 0.49, and annualized covariance runs at 146.2 %².
Within AON's tracked universe of 32 assets, XLF comes in at #17 by 3-year correlation. Over the last 12 months XLF came out ahead by 13.9 percentage points (-4.6% against +9.3%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.03 to 0.56.
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.
AON vs XLF: side by side
| AON (Aon plc) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -4.6% | +9.3% |
| 5-year return | +27.0% | +64.2% |
| Volatility (ann.) | 21.7% | 16.2% |
| Beta vs S&P 500 | 0.34 | 0.84 |
| Max drawdown (3Y) | -24.2% | -15.5% |
| Market cap | $74.2B | – |
| P/E (trailing) | 19.5 | – |
| Dividend yield | 0.86% | 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 | AON | XLF |
|---|---|---|
| 2022 | +0.6% | -10.6% |
| 2023 | -2.3% | +12.0% |
| 2024 | +24.5% | +30.6% |
| 2025 | -1.2% | +14.9% |
| 2026 | -0.5% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
AON represents 0.92% of XLF's portfolio, so part of any move in XLF is AON itself, and the correlation between them is partly mechanical.
Are AON and XLF good diversifiers for each other?
Reasonably. At 0.42, AON and XLF keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between AON and XLF?
The AON/XLF correlation stands at 0.42 on a 3-year window (1 year: 0.51, 5 years: 0.49), computed from weekly returns as of 2026-08-27.
Is XLF a good diversifier for AON?
Reasonably. At 0.42, AON and XLF keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.42 mean?
A reading of 0.42 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: AON correlations · XLF correlations
