BLK vs XLF: Correlation
BlackRock (BLK) and Financial Select Sector SPDR Fund (XLF) show a strong relationship: their 3-year correlation of weekly returns is 0.67.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BLK and XLF?
Across a 3-year window, the weekly returns of BLK and XLF correlate at 0.67, strong. The past 12 months show a weaker link (0.41) than the 3-year average (0.67). Stretching to 5 years gives 0.73, with an annualized covariance of 268.9 %².
Within BLK's tracked universe of 42 assets, XLF comes in at #18 by 3-year correlation. Neither side won the trailing year by much: +5.3% against +9.3%. On a rolling one-year basis the correlation drifted between 0.40 and 0.81, a moderate band. Risk is not evenly split, since BLK carries 1.5 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.
BLK vs XLF: side by side
| BLK (BlackRock) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +5.3% | +9.3% |
| 5-year return | +38.9% | +64.2% |
| Volatility (ann.) | 24.7% | 16.2% |
| Beta vs S&P 500 | 1.19 | 0.84 |
| Max drawdown (3Y) | -23.7% | -15.5% |
| Market cap | $189.7B | – |
| P/E (trailing) | 28.1 | – |
| Dividend yield | 1.86% | 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 | BLK | XLF |
|---|---|---|
| 2022 | -20.4% | -10.6% |
| 2023 | +17.9% | +12.0% |
| 2024 | +29.3% | +30.6% |
| 2025 | +6.6% | +14.9% |
| 2026 | +10.3% | +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 BLK at a 2.06% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are BLK and XLF good diversifiers for each other?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between BLK and XLF?
As of 2026-08-27, the correlation of weekly returns between BLK and XLF is 0.67 over 3 years, 0.41 over 1 year and 0.73 over 5 years.
Is XLF a good diversifier for BLK?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.67 mean?
On the −1 to +1 scale, 0.67 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.
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Related comparisons
Hubs: BLK correlations · XLF correlations
