BRO vs XLF: Correlation
Measured on weekly returns over the past three years, Brown & Brown (BRO) and Financial Select Sector SPDR Fund (XLF) carry a correlation of 0.44, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BRO and XLF?
Over the past 3 years, BRO and XLF moved with a correlation of 0.44, which is moderate. The relationship has been stable: the 1-year correlation (0.42) sits close to the 3-year figure. Over 5 years the correlation is 0.52, and the annualized covariance of weekly returns is 172.6 %².
By 3-year correlation, XLF places #20 of the 35 assets tracked against BRO. Correlation aside, the last 12 months split them widely, with XLF ahead by 34.3 points (-25.0% versus +9.3%). The rolling one-year correlation moved between 0.21 and 0.58 over the past three years, a moderate range. Risk is not evenly split, since BRO 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.
BRO vs XLF: side by side
| BRO (Brown & Brown) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -25.0% | +9.3% |
| 5-year return | +27.5% | +64.2% |
| Volatility (ann.) | 24.4% | 16.2% |
| Beta vs S&P 500 | 0.39 | 0.84 |
| Max drawdown (3Y) | -55.8% | -15.5% |
| Market cap | $23.9B | – |
| P/E (trailing) | 23.3 | – |
| Dividend yield | 0.89% | 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 | BRO | XLF |
|---|---|---|
| 2022 | -18.4% | -10.6% |
| 2023 | +25.7% | +12.0% |
| 2024 | +44.3% | +30.6% |
| 2025 | -21.4% | +14.9% |
| 2026 | -9.7% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
BRO represents 0.26% of XLF's portfolio, so part of any move in XLF is BRO itself, and the correlation between them is partly mechanical.
Are BRO and XLF good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.44 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between BRO and XLF?
As of 2026-08-27, the correlation of weekly returns between BRO and XLF is 0.44 over 3 years, 0.42 over 1 year and 0.52 over 5 years.
Is XLF a good diversifier for BRO?
Yes, to a useful degree: a correlation of 0.44 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.44 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: BRO correlations · XLF correlations
