BCS vs XLF: Correlation
How closely do Barclays PLC (BCS) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.68, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BCS and XLF?
Across a 3-year window, the weekly returns of BCS and XLF correlate at 0.68, strong. Recent behaviour matches the longer record: 0.67 over 1 year against 0.68 over 3. Stretching to 5 years gives 0.72, with an annualized covariance of 342.1 %².
Among the 15 assets we track against BCS, XLF ranks #5 by 3-year correlation. Correlation aside, the last 12 months split them widely, with BCS ahead by 27.3 points (+36.6% versus +9.3%). One caveat on sizing: BCS is 1.9 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
BCS vs XLF: side by side
| BCS (Barclays PLC) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +36.6% | +9.3% |
| 5-year return | +214.7% | +64.2% |
| Volatility (ann.) | 30.9% | 16.2% |
| Beta vs S&P 500 | 1.27 | 0.84 |
| Max drawdown (3Y) | -26.2% | -15.5% |
| Market cap | $90.3B | – |
| P/E (trailing) | 10.3 | – |
| Dividend yield | 0.42% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | US Listed | 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 | BCS | XLF |
|---|---|---|
| 2022 | -21.9% | -10.6% |
| 2023 | +6.0% | +12.0% |
| 2024 | +76.3% | +30.6% |
| 2025 | +96.5% | +14.9% |
| 2026 | +8.0% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BCS and XLF good diversifiers for each other?
To a limited degree. At 0.68 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between BCS and XLF?
As of 2026-08-27, the correlation of weekly returns between BCS and XLF is 0.68 over 3 years, 0.67 over 1 year and 0.72 over 5 years.
Is XLF a good diversifier for BCS?
To a limited degree. At 0.68 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.68 mean?
A reading of 0.68 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: BCS correlations · XLF correlations
