FNGD vs XLB: Correlation
How closely do MicroSectors FANG Index -3X Inverse Leveraged ETNs due (FNGD) and Materials Select Sector SPDR Fund (XLB) trade together? Their weekly returns over three years give a correlation of -0.32, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FNGD and XLB?
Over the past 3 years, FNGD and XLB moved with a correlation of -0.32, which is negative, meaning they tend to move in opposite directions. The past 12 months show a tighter link (-0.06) than the 3-year average (-0.32). Over 5 years the correlation is -0.48, and the annualized covariance of weekly returns is -406.4 %².
Among the 1743 assets we track against FNGD, XLB ranks #1001 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLB ahead by 73.3 points (-55.7% versus +17.6%). Risk is not evenly split, since FNGD carries 4.5 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.
FNGD vs XLB: side by side
| FNGD (MicroSectors FANG Index -3X Inverse Leveraged ETNs due) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -55.7% | +17.6% |
| 5-year return | -99.4% | +36.9% |
| Volatility (ann.) | 75.7% | 16.7% |
| Beta vs S&P 500 | -4.54 | 0.72 |
| Max drawdown (3Y) | -97.6% | -23.2% |
| Market cap | – | – |
| P/E (trailing) | 20.6 | – |
| Dividend yield | 0.00% | 1.68% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.3B |
| Sector / category | US Listed | Sector ETF |
XLB is a Natural Resources fund from State Street Investment Management: $8.3B under management, 26 holdings, a 0.08% expense ratio, a 1.68% trailing dividend yield.
Year-by-year returns
| Year | FNGD | XLB |
|---|---|---|
| 2022 | +52.2% | -12.3% |
| 2023 | -90.1% | +12.5% |
| 2024 | -76.6% | +0.1% |
| 2025 | -61.4% | +9.9% |
| 2026 | -49.5% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FNGD and XLB good diversifiers for each other?
Yes. With a correlation of -0.32, FNGD and XLB have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between FNGD and XLB?
As of 2026-08-27, the correlation of weekly returns between FNGD and XLB is -0.32 over 3 years, -0.06 over 1 year and -0.48 over 5 years.
Is XLB a good diversifier for FNGD?
Yes. With a correlation of -0.32, FNGD and XLB have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.32 mean?
On the −1 to +1 scale, -0.32 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/fngd-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/fngd-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: FNGD correlations · XLB correlations
