GS vs XLF: Correlation
How closely do Goldman Sachs (GS) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.82, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are GS and XLF?
Over the past 3 years, GS and XLF moved with a correlation of 0.82, which is very strong, meaning they move nearly in lockstep. Lately the two have drifted apart, with the 1-year correlation at 0.61 versus 0.82 over 3 years. Over 5 years the correlation is 0.83, and the annualized covariance of weekly returns is 357.7 %².
XLF is one of the assets that tracks GS most closely: it ranks #2 out of the 41 assets we track against GS. The last year tells two different stories: GS led by 32.3 percentage points, +41.6% for GS against +9.3% for XLF. The rolling one-year correlation moved between 0.61 and 0.90 over the past three years, a moderate range. Note the risk asymmetry: GS 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.
GS vs XLF: side by side
| GS (Goldman Sachs) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +41.6% | +9.3% |
| 5-year return | +184.1% | +64.2% |
| Volatility (ann.) | 27.0% | 16.2% |
| Beta vs S&P 500 | 1.34 | 0.84 |
| Max drawdown (3Y) | -30.9% | -15.5% |
| Market cap | $303.1B | – |
| P/E (trailing) | 16.1 | – |
| Dividend yield | 1.63% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | Financials | Sector ETF |
XLF is a Financial fund from State Street Investment Management: $57.9B under management, 77 holdings, a 0.08% expense ratio, a 1.42% trailing dividend yield.
Year-by-year returns
| Year | GS | XLF |
|---|---|---|
| 2022 | -7.9% | -10.6% |
| 2023 | +15.9% | +12.0% |
| 2024 | +52.0% | +30.6% |
| 2025 | +56.6% | +14.9% |
| 2026 | +19.6% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 3.73% of XLF is GS itself, so the fund partly moves with the stock by construction.
Are GS and XLF good diversifiers for each other?
No. With a correlation of 0.82, GS and XLF move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between GS and XLF?
The GS/XLF correlation stands at 0.82 on a 3-year window (1 year: 0.61, 5 years: 0.83), computed from weekly returns as of 2026-08-27.
Is XLF a good diversifier for GS?
No. With a correlation of 0.82, GS and XLF move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.82 mean?
A reading of 0.82 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Hubs: GS correlations · XLF correlations
