ETY vs XLC: Correlation
Eaton Vance Tax-Managed Diversified Equity Income Fund (ETY) and Communication Services Select Sector SPDR Fund (XLC) show a very strong relationship: their 3-year correlation of weekly returns is 0.81.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ETY and XLC?
On 3 years of weekly data the ETY/XLC correlation comes out at 0.81, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.74 lands near the 3-year figure. The 5-year figure is 0.75, and annualized covariance runs at 200.3 %².
Among the 34 assets we track against ETY, XLC ranks #13 by 3-year correlation. Neither side won the trailing year by much: -0.4% against +1.5%.
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.
ETY vs XLC: side by side
| ETY (Eaton Vance Tax-Managed Diversified Equity Income Fund) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -0.4% | +1.5% |
| 5-year return | +51.2% | +37.5% |
| Volatility (ann.) | 15.4% | 16.0% |
| Beta vs S&P 500 | 0.97 | 0.90 |
| Max drawdown (3Y) | -21.3% | -18.0% |
| Market cap | – | – |
| P/E (trailing) | 5.2 | – |
| Dividend yield | 8.24% | 1.32% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $21.7B |
| Sector / category | US Listed | Sector ETF |
On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Year-by-year returns
| Year | ETY | XLC |
|---|---|---|
| 2022 | -21.2% | -37.6% |
| 2023 | +21.9% | +52.8% |
| 2024 | +33.1% | +34.7% |
| 2025 | +11.0% | +23.1% |
| 2026 | +0.2% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ETY and XLC good diversifiers for each other?
No: a correlation of 0.81 means ETY and XLC tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between ETY and XLC?
The ETY/XLC correlation stands at 0.81 on a 3-year window (1 year: 0.74, 5 years: 0.75), computed from weekly returns as of 2026-08-27.
Is XLC a good diversifier for ETY?
No: a correlation of 0.81 means ETY and XLC tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.81 mean?
A reading of 0.81 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ety-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ety-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ETY correlations · XLC correlations
