FXI vs XLC: Correlation & Overlap
Measured on weekly returns over the past three years, iShares China Large-Cap ETF (FXI) and Communication Services Select Sector SPDR Fund (XLC) carry a correlation of 0.35, a moderate link. Looking through to holdings, 0% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FXI and XLC?
Across a 3-year window, the weekly returns of FXI and XLC correlate at 0.35, moderate. Little has changed lately, as the 1-year reading of 0.43 lands near the 3-year figure. Stretching to 5 years gives 0.39, with an annualized covariance of 140.6 %².
Within FXI's tracked universe of 74 assets, XLC comes in at #40 by 3-year correlation. The trailing year gives XLC the advantage: -6.1% versus +1.5%, a 7.6-point spread. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.12 to 0.63. One caveat on sizing: FXI is 1.6 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 XLC: side by side
| FXI (iShares China Large-Cap ETF) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -6.1% | +1.5% |
| 5-year return | -1.4% | +37.5% |
| Volatility (ann.) | 25.3% | 16.0% |
| Beta vs S&P 500 | 0.68 | 0.90 |
| Max drawdown (3Y) | -23.2% | -18.0% |
| Dividend yield | 1.87% | 1.32% |
| Expense ratio | 0.73% | 0.08% |
| Assets under management | $4.3B | $21.7B |
| Sector / category | ETF · International | Sector ETF |
FXI, iShares's Greater China Region fund, carries $4.3B under management, 50 holdings, a 0.73% expense ratio, a 1.87% trailing dividend yield. 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.
Portfolio overlap between FXI and XLC
The two portfolios are largely distinct: 0% of the funds' weight sits in the same underlying holdings (0 common positions). Correlation tells you they move together; overlap tells you why.
Largest positions held only by FXI: 9988 (9.72%), 939 (9.09%), 700 (8.51%), 1398 (6.35%), 1810 (5.16%). Only by XLC: META (16.73%), GOOGL (10.29%), GOOG (8.22%), T (5.20%), VZ (4.99%).
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 | XLC |
|---|---|---|
| 2022 | -20.7% | -37.6% |
| 2023 | -12.4% | +52.8% |
| 2024 | +29.0% | +34.7% |
| 2025 | +28.9% | +23.1% |
| 2026 | -7.3% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FXI and XLC good diversifiers for each other?
A fair diversifier. At 0.35, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between FXI and XLC?
The FXI/XLC correlation stands at 0.35 on a 3-year window (1 year: 0.43, 5 years: 0.39), computed from weekly returns as of 2026-08-27.
Is XLC a good diversifier for FXI?
A fair diversifier. At 0.35, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do FXI and XLC overlap?
The two funds share 0 holdings amounting to 0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/fxi-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/fxi-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: FXI correlations · XLC correlations
