ETR vs XLU: Correlation
Measured on weekly returns over the past three years, Entergy (ETR) and Utilities Select Sector SPDR Fund (XLU) carry a correlation of 0.80, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ETR and XLU?
Across a 3-year window, the weekly returns of ETR and XLU correlate at 0.80, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.89) sits close to the 3-year figure. Stretching to 5 years gives 0.83, with an annualized covariance of 250.1 %².
Few assets follow ETR as closely as XLU, which ranks #3 of 38 tracked partners. Their recent paths diverged sharply: over the last 12 months ETR outperformed by 17.8 percentage points (+21.9% for ETR against +4.1% for XLU). Across three years, the rolling one-year figure varied moderately, from 0.64 to 0.89.
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.
ETR vs XLU: side by side
| ETR (Entergy) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +21.9% | +4.1% |
| 5-year return | +132.0% | +46.3% |
| Volatility (ann.) | 19.7% | 15.8% |
| Beta vs S&P 500 | 0.22 | 0.26 |
| Max drawdown (3Y) | -10.6% | -13.1% |
| Market cap | $49.7B | – |
| P/E (trailing) | 27.2 | – |
| Dividend yield | 2.35% | 2.70% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $23.1B |
| Sector / category | Utilities | Sector ETF |
XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Year-by-year returns
| Year | ETR | XLU |
|---|---|---|
| 2022 | +3.6% | +1.4% |
| 2023 | -6.1% | -7.2% |
| 2024 | +56.0% | +23.3% |
| 2025 | +25.3% | +16.0% |
| 2026 | +17.3% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLU holds ETR at a 3.62% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are ETR and XLU good diversifiers for each other?
Not really. At 0.80, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between ETR and XLU?
Using weekly returns as of 2026-08-27: 0.80 over 3 years, with 0.89 over the last year and 0.83 over 5 years.
Is XLU a good diversifier for ETR?
Not really. At 0.80, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.80 mean?
On the −1 to +1 scale, 0.80 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/etr-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/etr-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ETR correlations · XLU correlations
