FXI vs XLRE: Correlation & Overlap
Measured on weekly returns over the past three years, iShares China Large-Cap ETF (FXI) and Real Estate Select Sector SPDR Fund (XLRE) carry a correlation of 0.23, a weak link. The two funds also share 0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FXI and XLRE?
Over the past 3 years, FXI and XLRE moved with a correlation of 0.23, which is weak. The relationship has been stable: the 1-year correlation (0.29) sits close to the 3-year figure. Over 5 years the correlation is 0.23, and the annualized covariance of weekly returns is 97.2 %².
Among the 74 assets we track against FXI, XLRE ranks #60 by 3-year correlation. The last year tells two different stories: XLRE led by 15.6 percentage points, -6.1% for FXI against +9.5% for XLRE. On a rolling one-year basis the correlation drifted between 0.06 and 0.50, a moderate band. One caveat on sizing: FXI is 1.5 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 XLRE: side by side
| FXI (iShares China Large-Cap ETF) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -6.1% | +9.5% |
| 5-year return | -1.4% | +11.4% |
| Volatility (ann.) | 25.3% | 16.7% |
| Beta vs S&P 500 | 0.68 | 0.57 |
| Max drawdown (3Y) | -23.2% | -16.6% |
| Dividend yield | 1.87% | 3.12% |
| Expense ratio | 0.73% | 0.08% |
| Assets under management | $4.3B | $8.6B |
| 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. On the fund side, XLRE sits in the Real Estate category at State Street Investment Management, with $8.6B under management, 31 holdings, a 0.08% expense ratio, a 3.12% trailing dividend yield.
Portfolio overlap between FXI and XLRE
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 XLRE: WELL (11.43%), PLD (9.06%), EQIX (7.14%), AMT (5.49%), DLR (5.01%).
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 | XLRE |
|---|---|---|
| 2022 | -20.7% | -26.2% |
| 2023 | -12.4% | +12.4% |
| 2024 | +29.0% | +5.1% |
| 2025 | +28.9% | +2.6% |
| 2026 | -7.3% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FXI and XLRE good diversifiers for each other?
A fair diversifier. At 0.23, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between FXI and XLRE?
Using weekly returns as of 2026-08-27: 0.23 over 3 years, with 0.29 over the last year and 0.23 over 5 years.
Is XLRE a good diversifier for FXI?
A fair diversifier. At 0.23, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do FXI and XLRE overlap?
The two funds share 0 holdings amounting to 0% of weight, per issuer portfolio files dated 2026-08-26.
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Related comparisons
Hubs: FXI correlations · XLRE correlations
