FXI vs XLV: Correlation & Overlap
Measured on weekly returns over the past three years, iShares China Large-Cap ETF (FXI) and Health Care Select Sector SPDR Fund (XLV) carry a correlation of 0.17, 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 XLV?
Over the past 3 years, FXI and XLV moved with a correlation of 0.17, which is weak. Little has changed lately, as the 1-year reading of 0.12 lands near the 3-year figure. Over 5 years the correlation is 0.19, and the annualized covariance of weekly returns is 63.9 %².
By 3-year correlation, XLV places #63 of the 74 assets tracked against FXI. Their recent paths diverged sharply: over the last 12 months XLV outperformed by 33.6 percentage points (-6.1% for FXI against +27.5% for XLV). On a rolling one-year basis the correlation drifted between 0.07 and 0.45, a moderate band. Note the risk asymmetry: FXI runs 1.7 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 XLV: side by side
| FXI (iShares China Large-Cap ETF) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -6.1% | +27.5% |
| 5-year return | -1.4% | +37.4% |
| Volatility (ann.) | 25.3% | 14.7% |
| Beta vs S&P 500 | 0.68 | 0.42 |
| Max drawdown (3Y) | -23.2% | -17.1% |
| Dividend yield | 1.87% | 1.56% |
| Expense ratio | 0.73% | 0.08% |
| Assets under management | $4.3B | $41.7B |
| 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. On the fund side, XLV sits in the Health category at State Street Investment Management, with $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield.
Portfolio overlap between FXI and XLV
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 XLV: LLY (15.03%), JNJ (10.38%), ABBV (7.42%), MRK (6.04%), UNH (5.82%).
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 | XLV |
|---|---|---|
| 2022 | -20.7% | -2.1% |
| 2023 | -12.4% | +2.1% |
| 2024 | +29.0% | +2.5% |
| 2025 | +28.9% | +14.5% |
| 2026 | -7.3% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FXI and XLV good diversifiers for each other?
By historical standards, yes. A correlation of 0.17 means the two rarely move for the same reasons.
FAQ
What is the correlation between FXI and XLV?
The FXI/XLV correlation stands at 0.17 on a 3-year window (1 year: 0.12, 5 years: 0.19), computed from weekly returns as of 2026-08-27.
Is XLV a good diversifier for FXI?
By historical standards, yes. A correlation of 0.17 means the two rarely move for the same reasons.
How much do FXI and XLV 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-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/fxi-vs-xlv/)
Free with attribution; caching and terms are described in the API documentation.
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Hubs: FXI correlations · XLV correlations
