FXI vs XLY: Correlation & Overlap
Measured on weekly returns over the past three years, iShares China Large-Cap ETF (FXI) and Consumer Discretionary Select Sector SPDR Fund (XLY) carry a correlation of 0.34, a moderate link. 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 XLY?
On 3 years of weekly data the FXI/XLY correlation comes out at 0.34, moderate. Lately the two have moved closer together, with the 1-year correlation at 0.45 versus 0.34 over 3 years. The 5-year figure is 0.32, and annualized covariance runs at 167.5 %².
Among the 74 assets we track against FXI, XLY ranks #44 by 3-year correlation. The trailing year gives XLY the advantage: -6.1% versus -0.1%, a 6.0-point spread. Across three years, the rolling one-year figure varied moderately, from 0.22 to 0.59.
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 XLY: side by side
| FXI (iShares China Large-Cap ETF) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -6.1% | -0.1% |
| 5-year return | -1.4% | +31.8% |
| Volatility (ann.) | 25.3% | 19.7% |
| Beta vs S&P 500 | 0.68 | 1.15 |
| Max drawdown (3Y) | -23.2% | -26.0% |
| Dividend yield | 1.87% | 0.78% |
| Expense ratio | 0.73% | 0.08% |
| Assets under management | $4.3B | $22.5B |
| 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. XLY is a Consumer Cyclical fund from State Street Investment Management: $22.5B under management, 47 holdings, a 0.08% expense ratio, a 0.78% trailing dividend yield.
Portfolio overlap between FXI and XLY
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 XLY: AMZN (24.32%), TSLA (16.18%), HD (5.54%), MCD (4.11%), BKNG (4.04%).
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 | XLY |
|---|---|---|
| 2022 | -20.7% | -36.3% |
| 2023 | -12.4% | +39.6% |
| 2024 | +29.0% | +26.5% |
| 2025 | +28.9% | +7.4% |
| 2026 | -7.3% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FXI and XLY good diversifiers for each other?
Reasonably. At 0.34, FXI and XLY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between FXI and XLY?
As of 2026-08-27, the correlation of weekly returns between FXI and XLY is 0.34 over 3 years, 0.45 over 1 year and 0.32 over 5 years.
Is XLY a good diversifier for FXI?
Reasonably. At 0.34, FXI and XLY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do FXI and XLY overlap?
The two funds share 0 holdings amounting to 0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/fxi-vs-xly.json
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Related comparisons
Hubs: FXI correlations · XLY correlations
