FNGD vs XLF: Correlation
Measured on weekly returns over the past three years, MicroSectors FANG Index -3X Inverse Leveraged ETNs due (FNGD) and Financial Select Sector SPDR Fund (XLF) carry a correlation of -0.48, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FNGD and XLF?
On 3 years of weekly data the FNGD/XLF correlation comes out at -0.48, negative, meaning they tend to move in opposite directions. The past 12 months show a tighter link (-0.32) than the 3-year average (-0.48). The 5-year figure is -0.52, and annualized covariance runs at -592.9 %².
By 3-year correlation, XLF places #1561 of the 1743 assets tracked against FNGD. The last year tells two different stories: XLF led by 65.0 percentage points, -55.7% for FNGD against +9.3% for XLF. Note the risk asymmetry: FNGD runs 4.7 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 XLF: side by side
| FNGD (MicroSectors FANG Index -3X Inverse Leveraged ETNs due) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -55.7% | +9.3% |
| 5-year return | -99.4% | +64.2% |
| Volatility (ann.) | 75.7% | 16.2% |
| Beta vs S&P 500 | -4.54 | 0.84 |
| Max drawdown (3Y) | -97.6% | -15.5% |
| Market cap | – | – |
| P/E (trailing) | 20.6 | – |
| Dividend yield | 0.00% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | US Listed | 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 | FNGD | XLF |
|---|---|---|
| 2022 | +52.2% | -10.6% |
| 2023 | -90.1% | +12.0% |
| 2024 | -76.6% | +30.6% |
| 2025 | -61.4% | +14.9% |
| 2026 | -49.5% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FNGD and XLF good diversifiers for each other?
Yes. With a correlation of -0.48, FNGD and XLF have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between FNGD and XLF?
The FNGD/XLF correlation stands at -0.48 on a 3-year window (1 year: -0.32, 5 years: -0.52), computed from weekly returns as of 2026-08-27.
Is XLF a good diversifier for FNGD?
Yes. With a correlation of -0.48, FNGD and XLF have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.48 mean?
On the −1 to +1 scale, -0.48 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-xlf.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/fngd-vs-xlf/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: FNGD correlations · XLF correlations
