FNGD vs XLC: Correlation
How closely do MicroSectors FANG Index -3X Inverse Leveraged ETNs due (FNGD) and Communication Services Select Sector SPDR Fund (XLC) trade together? Their weekly returns over three years give a correlation of -0.76, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FNGD and XLC?
On 3 years of weekly data the FNGD/XLC correlation comes out at -0.76, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.70) sits close to the 3-year figure. The 5-year figure is -0.81, and annualized covariance runs at -918.3 %².
Among the 1743 assets we track against FNGD, XLC ranks #1718 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLC outperformed by 57.2 percentage points (-55.7% for FNGD against +1.5% for XLC). Risk is not evenly split, since FNGD carries 4.7 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 XLC: side by side
| FNGD (MicroSectors FANG Index -3X Inverse Leveraged ETNs due) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -55.7% | +1.5% |
| 5-year return | -99.4% | +37.5% |
| Volatility (ann.) | 75.7% | 16.0% |
| Beta vs S&P 500 | -4.54 | 0.90 |
| Max drawdown (3Y) | -97.6% | -18.0% |
| Market cap | – | – |
| P/E (trailing) | 20.6 | – |
| Dividend yield | 0.00% | 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 | FNGD | XLC |
|---|---|---|
| 2022 | +52.2% | -37.6% |
| 2023 | -90.1% | +52.8% |
| 2024 | -76.6% | +34.7% |
| 2025 | -61.4% | +23.1% |
| 2026 | -49.5% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FNGD and XLC good diversifiers for each other?
Yes: at -0.76, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between FNGD and XLC?
As of 2026-08-27, the correlation of weekly returns between FNGD and XLC is -0.76 over 3 years, -0.70 over 1 year and -0.81 over 5 years.
Is XLC a good diversifier for FNGD?
Yes: at -0.76, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.76 mean?
On the −1 to +1 scale, -0.76 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-xlc.json
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[](https://www.pairbook.io/pair/fngd-vs-xlc/)
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Related comparisons
Hubs: FNGD correlations · XLC correlations
