FXI vs XLP: Correlation & Overlap
How closely do iShares China Large-Cap ETF (FXI) and Consumer Staples Select Sector SPDR Fund (XLP) trade together? Their weekly returns over three years give a correlation of 0.13, which is weak. 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 XLP?
Across a 3-year window, the weekly returns of FXI and XLP correlate at 0.13, weak. The relationship has been stable: the 1-year correlation (0.09) sits close to the 3-year figure. Stretching to 5 years gives 0.16, with an annualized covariance of 37.5 %².
By 3-year correlation, XLP places #64 of the 74 assets tracked against FXI. The trailing year gives XLP the advantage: -6.1% versus +8.3%, a 14.4-point spread. On a rolling one-year basis the correlation drifted between 0.00 and 0.39, a moderate band. Risk is not evenly split, since FXI carries 2.3 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.
FXI vs XLP: side by side
| FXI (iShares China Large-Cap ETF) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -6.1% | +8.3% |
| 5-year return | -1.4% | +34.7% |
| Volatility (ann.) | 25.3% | 11.1% |
| Beta vs S&P 500 | 0.68 | 0.23 |
| Max drawdown (3Y) | -23.2% | -9.7% |
| Dividend yield | 1.87% | 2.58% |
| Expense ratio | 0.73% | 0.08% |
| Assets under management | $4.3B | $14.6B |
| 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, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Portfolio overlap between FXI and XLP
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 XLP: WMT (9.62%), COST (8.92%), KO (7.34%), PG (7.10%), PM (6.36%).
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 | XLP |
|---|---|---|
| 2022 | -20.7% | -0.8% |
| 2023 | -12.4% | -0.8% |
| 2024 | +29.0% | +12.2% |
| 2025 | +28.9% | +1.5% |
| 2026 | -7.3% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FXI and XLP good diversifiers for each other?
Yes: at 0.13, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between FXI and XLP?
As of 2026-08-27, the correlation of weekly returns between FXI and XLP is 0.13 over 3 years, 0.09 over 1 year and 0.16 over 5 years.
Is XLP a good diversifier for FXI?
Yes: at 0.13, the two have gone their own ways historically, which is what genuine diversification looks like.
How much do FXI and XLP 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-xlp.json
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[](https://www.pairbook.io/pair/fxi-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: FXI correlations · XLP correlations
