BGR vs XLE: Correlation
BlackRock Energy and Resources Trust (BGR) and Energy Select Sector SPDR Fund (XLE) show a very strong relationship: their 3-year correlation of weekly returns is 0.86.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BGR and XLE?
Across a 3-year window, the weekly returns of BGR and XLE correlate at 0.86, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.83 lands near the 3-year figure. Stretching to 5 years gives 0.90, with an annualized covariance of 388.2 %².
In BGR's tracked universe of 19 assets, XLE sits right near the top at #1. On 12-month performance XLE holds a 8.7-point edge, +35.3% against +44.0%.
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.
BGR vs XLE: side by side
| BGR (BlackRock Energy and Resources Trust) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +35.3% | +44.0% |
| 5-year return | +165.0% | +206.7% |
| Volatility (ann.) | 19.7% | 23.1% |
| Beta vs S&P 500 | 0.21 | 0.27 |
| Max drawdown (3Y) | -18.3% | -20.1% |
| Market cap | $0.4B | – |
| P/E (trailing) | 10.8 | – |
| Dividend yield | 6.86% | 2.55% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $39.2B |
| Sector / category | US Listed | Sector ETF |
XLE is an Equity Energy fund from State Street Investment Management: $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% trailing dividend yield.
Year-by-year returns
| Year | BGR | XLE |
|---|---|---|
| 2022 | +38.9% | +64.3% |
| 2023 | +5.8% | -0.6% |
| 2024 | +8.1% | +5.6% |
| 2025 | +17.3% | +7.9% |
| 2026 | +30.7% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BGR and XLE good diversifiers for each other?
No: a correlation of 0.86 means BGR and XLE tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between BGR and XLE?
The BGR/XLE correlation stands at 0.86 on a 3-year window (1 year: 0.83, 5 years: 0.90), computed from weekly returns as of 2026-08-27.
Is XLE a good diversifier for BGR?
No: a correlation of 0.86 means BGR and XLE tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.86 mean?
On the −1 to +1 scale, 0.86 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/bgr-vs-xle.json
Markdown for the live badge, attribution link included:
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Hubs: BGR correlations · XLE correlations
