FNGD vs XLY: Correlation
How closely do MicroSectors FANG Index -3X Inverse Leveraged ETNs due (FNGD) and Consumer Discretionary Select Sector SPDR Fund (XLY) 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 XLY?
Across a 3-year window, the weekly returns of FNGD and XLY correlate at -0.76, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.72) sits close to the 3-year figure. Stretching to 5 years gives -0.79, with an annualized covariance of -1126.0 %².
By 3-year correlation, XLY places #1719 of the 1743 assets tracked against FNGD. Correlation aside, the last 12 months split them widely, with XLY ahead by 55.6 points (-55.7% versus -0.1%). Risk is not evenly split, since FNGD carries 3.8 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 XLY: side by side
| FNGD (MicroSectors FANG Index -3X Inverse Leveraged ETNs due) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -55.7% | -0.1% |
| 5-year return | -99.4% | +31.8% |
| Volatility (ann.) | 75.7% | 19.7% |
| Beta vs S&P 500 | -4.54 | 1.15 |
| Max drawdown (3Y) | -97.6% | -26.0% |
| Market cap | – | – |
| P/E (trailing) | 20.6 | – |
| Dividend yield | 0.00% | 0.78% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $22.5B |
| Sector / category | US Listed | Sector ETF |
XLY is a Consumer Cyclical fund from State Street Investment Management: $22.5B under management, 47 holdings, a 0.08% expense ratio, a 0.78% trailing dividend yield.
Year-by-year returns
| Year | FNGD | XLY |
|---|---|---|
| 2022 | +52.2% | -36.3% |
| 2023 | -90.1% | +39.6% |
| 2024 | -76.6% | +26.5% |
| 2025 | -61.4% | +7.4% |
| 2026 | -49.5% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FNGD and XLY 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 XLY?
The FNGD/XLY correlation stands at -0.76 on a 3-year window (1 year: -0.72, 5 years: -0.79), computed from weekly returns as of 2026-08-27.
Is XLY 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?
A reading of -0.76 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/fngd-vs-xly.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/fngd-vs-xly/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: FNGD correlations · XLY correlations
