FXI vs XLU: Correlation & Overlap
Measured on weekly returns over the past three years, iShares China Large-Cap ETF (FXI) and Utilities Select Sector SPDR Fund (XLU) carry a correlation of 0.19, 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 XLU?
Across a 3-year window, the weekly returns of FXI and XLU correlate at 0.19, weak. The link has loosened recently: the 1-year correlation (-0.16) runs below the 3-year figure (0.19). Stretching to 5 years gives 0.14, with an annualized covariance of 76.1 %².
Among the 74 assets we track against FXI, XLU ranks #61 by 3-year correlation. Over the last 12 months XLU came out ahead by 10.2 percentage points (-6.1% against +4.1%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.11 to 0.39. 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 XLU: side by side
| FXI (iShares China Large-Cap ETF) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -6.1% | +4.1% |
| 5-year return | -1.4% | +46.3% |
| Volatility (ann.) | 25.3% | 15.8% |
| Beta vs S&P 500 | 0.68 | 0.26 |
| Max drawdown (3Y) | -23.2% | -13.1% |
| Dividend yield | 1.87% | 2.70% |
| Expense ratio | 0.73% | 0.08% |
| Assets under management | $4.3B | $23.1B |
| Sector / category | ETF · International | Sector ETF |
FXI is a Greater China Region fund from iShares: $4.3B under management, 50 holdings, a 0.73% expense ratio, a 1.87% trailing dividend yield. XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Portfolio overlap between FXI and XLU
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 XLU: NEE (12.94%), SO (7.45%), DUK (7.00%), CEG (6.58%), AEP (4.94%).
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 | XLU |
|---|---|---|
| 2022 | -20.7% | +1.4% |
| 2023 | -12.4% | -7.2% |
| 2024 | +29.0% | +23.3% |
| 2025 | +28.9% | +16.0% |
| 2026 | -7.3% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FXI and XLU good diversifiers for each other?
Yes: at 0.19, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between FXI and XLU?
As of 2026-08-27, the correlation of weekly returns between FXI and XLU is 0.19 over 3 years, -0.16 over 1 year and 0.14 over 5 years.
Is XLU a good diversifier for FXI?
Yes: at 0.19, the two have gone their own ways historically, which is what genuine diversification looks like.
How much do FXI and XLU 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-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/fxi-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: FXI correlations · XLU correlations
