BF.B vs XLP: Correlation
Brown–Forman (BF.B) and Consumer Staples Select Sector SPDR Fund (XLP) show a moderate relationship: their 3-year correlation of weekly returns is 0.46.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BF.B and XLP?
Over the past 3 years, BF.B and XLP moved with a correlation of 0.46, which is moderate. Little has changed lately, as the 1-year reading of 0.42 lands near the 3-year figure. Over 5 years the correlation is 0.50, and the annualized covariance of weekly returns is 173.1 %².
Within BF.B's tracked universe of 36 assets, XLP comes in at #10 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLP outperformed by 15.7 percentage points (-7.4% for BF.B against +8.3% for XLP). Across three years, the rolling one-year figure varied moderately, from 0.27 to 0.66. Risk is not evenly split, since BF.B carries 3.1 times the volatility of the other side.
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.
BF.B vs XLP: side by side
| BF.B (Brown–Forman) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -7.4% | +8.3% |
| 5-year return | -56.8% | +34.7% |
| Volatility (ann.) | 34.0% | 11.1% |
| Beta vs S&P 500 | 0.51 | 0.23 |
| Max drawdown (3Y) | -64.8% | -9.7% |
| Market cap | $12.5B | – |
| P/E (trailing) | 18.3 | – |
| Dividend yield | 3.26% | 2.58% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $14.6B |
| Sector / category | Consumer Staples | Sector ETF |
On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Year-by-year returns
| Year | BF.B | XLP |
|---|---|---|
| 2022 | -8.9% | -0.8% |
| 2023 | -11.9% | -0.8% |
| 2024 | -32.2% | +12.2% |
| 2025 | -29.3% | +1.5% |
| 2026 | +6.6% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLP holds BF.B at a 0.3% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are BF.B and XLP good diversifiers for each other?
Reasonably. At 0.46, BF.B and XLP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between BF.B and XLP?
Using weekly returns as of 2026-08-27: 0.46 over 3 years, with 0.42 over the last year and 0.50 over 5 years.
Is XLP a good diversifier for BF.B?
Reasonably. At 0.46, BF.B and XLP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.46 mean?
A reading of 0.46 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: BF.B correlations · XLP correlations
