FXI vs XLE: Correlation & Overlap
Measured on weekly returns over the past three years, iShares China Large-Cap ETF (FXI) and Energy Select Sector SPDR Fund (XLE) carry a correlation of 0.18, a weak link. 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 XLE?
Across a 3-year window, the weekly returns of FXI and XLE correlate at 0.18, weak. The link has loosened recently: the 1-year correlation (0.03) runs below the 3-year figure (0.18). Stretching to 5 years gives 0.12, with an annualized covariance of 102.3 %².
Within FXI's tracked universe of 74 assets, XLE comes in at #62 by 3-year correlation. The last year tells two different stories: XLE led by 50.1 percentage points, -6.1% for FXI against +44.0% for XLE. On a rolling one-year basis the correlation drifted between -0.14 and 0.35, a moderate band.
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 XLE: side by side
| FXI (iShares China Large-Cap ETF) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -6.1% | +44.0% |
| 5-year return | -1.4% | +206.7% |
| Volatility (ann.) | 25.3% | 23.1% |
| Beta vs S&P 500 | 0.68 | 0.27 |
| Max drawdown (3Y) | -23.2% | -20.1% |
| Dividend yield | 1.87% | 2.55% |
| Expense ratio | 0.73% | 0.08% |
| Assets under management | $4.3B | $39.2B |
| 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. XLE is an Equity Energy fund from State Street Investment Management: $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% trailing dividend yield.
Portfolio overlap between FXI and XLE
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 XLE: XOM (20.03%), CVX (14.84%), COP (6.30%), MPC (5.40%), PSX (5.37%).
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 | XLE |
|---|---|---|
| 2022 | -20.7% | +64.3% |
| 2023 | -12.4% | -0.6% |
| 2024 | +29.0% | +5.6% |
| 2025 | +28.9% | +7.9% |
| 2026 | -7.3% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FXI and XLE good diversifiers for each other?
By historical standards, yes. A correlation of 0.18 means the two rarely move for the same reasons.
FAQ
What is the correlation between FXI and XLE?
The FXI/XLE correlation stands at 0.18 on a 3-year window (1 year: 0.03, 5 years: 0.12), computed from weekly returns as of 2026-08-27.
Is XLE a good diversifier for FXI?
By historical standards, yes. A correlation of 0.18 means the two rarely move for the same reasons.
How much do FXI and XLE overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/fxi-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/fxi-vs-xle/)
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Related comparisons
Hubs: FXI correlations · XLE correlations
