BRK.B vs XLF: Correlation
Measured on weekly returns over the past three years, Berkshire Hathaway (BRK.B) and Financial Select Sector SPDR Fund (XLF) carry a correlation of 0.69, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BRK.B and XLF?
Over the past 3 years, BRK.B and XLF moved with a correlation of 0.69, which is strong. Lately the two have drifted apart, with the 1-year correlation at 0.46 versus 0.69 over 3 years. Over 5 years the correlation is 0.76, and the annualized covariance of weekly returns is 178.1 %².
In BRK.B's tracked universe of 31 assets, XLF sits right near the top at #2. Over the last 12 months XLF came out ahead by 7.7 percentage points (+1.6% against +9.3%). Across three years, the rolling one-year figure varied moderately, from 0.50 to 0.85.
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.
BRK.B vs XLF: side by side
| BRK.B (Berkshire Hathaway) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +1.6% | +9.3% |
| 5-year return | +76.3% | +64.2% |
| Volatility (ann.) | 15.9% | 16.2% |
| Beta vs S&P 500 | 0.43 | 0.84 |
| Max drawdown (3Y) | -14.9% | -15.5% |
| Market cap | $1,078.3B | – |
| P/E (trailing) | 12.7 | – |
| Dividend yield | 0.00% | 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 | BRK.B | XLF |
|---|---|---|
| 2022 | +3.3% | -10.6% |
| 2023 | +15.5% | +12.0% |
| 2024 | +27.1% | +30.6% |
| 2025 | +10.9% | +14.9% |
| 2026 | +0.2% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 11.25% of XLF is BRK.B itself, so the fund partly moves with the stock by construction.
Are BRK.B and XLF good diversifiers for each other?
To a limited degree. At 0.69 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 BRK.B and XLF?
The BRK.B/XLF correlation stands at 0.69 on a 3-year window (1 year: 0.46, 5 years: 0.76), computed from weekly returns as of 2026-08-27.
Is XLF a good diversifier for BRK.B?
To a limited degree. At 0.69 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 0.69 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: BRK.B correlations · XLF correlations
