FXI vs XLI: Correlation & Overlap
How closely do iShares China Large-Cap ETF (FXI) and Industrial Select Sector SPDR Fund (XLI) trade together? Their weekly returns over three years give a correlation of 0.30, which is moderate. 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 XLI?
Across a 3-year window, the weekly returns of FXI and XLI correlate at 0.30, moderate. The link has loosened recently: the 1-year correlation (0.16) runs below the 3-year figure (0.30). Stretching to 5 years gives 0.30, with an annualized covariance of 117.9 %².
Among the 74 assets we track against FXI, XLI ranks #51 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLI ahead by 24.4 points (-6.1% versus +18.3%). Across three years, the rolling one-year figure varied moderately, from 0.22 to 0.60. 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 XLI: side by side
| FXI (iShares China Large-Cap ETF) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -6.1% | +18.3% |
| 5-year return | -1.4% | +84.0% |
| Volatility (ann.) | 25.3% | 15.7% |
| Beta vs S&P 500 | 0.68 | 0.89 |
| Max drawdown (3Y) | -23.2% | -18.5% |
| Dividend yield | 1.87% | 1.15% |
| Expense ratio | 0.73% | 0.08% |
| Assets under management | $4.3B | $32.9B |
| 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. XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Portfolio overlap between FXI and XLI
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 XLI: CAT (6.68%), GE (6.52%), RTX (5.04%), GEV (4.52%), UNP (3.25%).
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 | XLI |
|---|---|---|
| 2022 | -20.7% | -5.6% |
| 2023 | -12.4% | +18.1% |
| 2024 | +29.0% | +17.3% |
| 2025 | +28.9% | +19.3% |
| 2026 | -7.3% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FXI and XLI good diversifiers for each other?
Reasonably. At 0.30, FXI and XLI keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between FXI and XLI?
As of 2026-08-27, the correlation of weekly returns between FXI and XLI is 0.30 over 3 years, 0.16 over 1 year and 0.30 over 5 years.
Is XLI a good diversifier for FXI?
Reasonably. At 0.30, FXI and XLI keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do FXI and XLI overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/fxi-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/fxi-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: FXI correlations · XLI correlations
