FXI vs XLB: Correlation & Overlap
iShares China Large-Cap ETF (FXI) and Materials Select Sector SPDR Fund (XLB) show a moderate relationship: their 3-year correlation of weekly returns is 0.35. By holdings, the two funds overlap 0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FXI and XLB?
Over the past 3 years, FXI and XLB moved with a correlation of 0.35, which is moderate. The link has loosened recently: the 1-year correlation (0.23) runs below the 3-year figure (0.35). Over 5 years the correlation is 0.39, and the annualized covariance of weekly returns is 147.1 %².
Within FXI's tracked universe of 74 assets, XLB comes in at #39 by 3-year correlation. The last year tells two different stories: XLB led by 23.7 percentage points, -6.1% for FXI against +17.6% for XLB. Across three years, the rolling one-year figure varied moderately, from 0.23 to 0.63. Note the risk asymmetry: FXI runs 1.5 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.
FXI vs XLB: side by side
| FXI (iShares China Large-Cap ETF) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -6.1% | +17.6% |
| 5-year return | -1.4% | +36.9% |
| Volatility (ann.) | 25.3% | 16.7% |
| Beta vs S&P 500 | 0.68 | 0.72 |
| Max drawdown (3Y) | -23.2% | -23.2% |
| Dividend yield | 1.87% | 1.68% |
| Expense ratio | 0.73% | 0.08% |
| Assets under management | $4.3B | $8.3B |
| Sector / category | ETF · International | Sector ETF |
On the fund side, FXI sits in the Greater China Region category at iShares, with $4.3B under management, 50 holdings, a 0.73% expense ratio, a 1.87% trailing dividend yield. 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.
Portfolio overlap between FXI and XLB
The two portfolios are largely distinct, with 0 holdings in common adding up to 0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by FXI: 9988 (9.72%), 939 (9.09%), 700 (8.51%), 1398 (6.35%), 1810 (5.16%). Only by XLB: LIN (12.94%), NEM (8.02%), FCX (6.48%), SHW (4.87%), ECL (4.80%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | FXI | XLB |
|---|---|---|
| 2022 | -20.7% | -12.3% |
| 2023 | -12.4% | +12.5% |
| 2024 | +29.0% | +0.1% |
| 2025 | +28.9% | +9.9% |
| 2026 | -7.3% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FXI and XLB good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.35 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between FXI and XLB?
As of 2026-08-27, the correlation of weekly returns between FXI and XLB is 0.35 over 3 years, 0.23 over 1 year and 0.39 over 5 years.
Is XLB a good diversifier for FXI?
Yes, to a useful degree: a correlation of 0.35 leaves real independence between the two, which historically damped combined volatility.
How much do FXI and XLB overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
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Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/fxi-vs-xlb/)
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Related comparisons
Hubs: FXI correlations · XLB correlations
