IBKR vs XLF: Correlation
Interactive Brokers (IBKR) and Financial Select Sector SPDR Fund (XLF) show a moderate relationship: their 3-year correlation of weekly returns is 0.47.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBKR and XLF?
Across a 3-year window, the weekly returns of IBKR and XLF correlate at 0.47, moderate. The link has loosened recently: the 1-year correlation (0.33) runs below the 3-year figure (0.47). Stretching to 5 years gives 0.52, with an annualized covariance of 255.5 %².
Within IBKR's tracked universe of 32 assets, XLF comes in at #20 by 3-year correlation. Correlation aside, the last 12 months split them widely, with IBKR ahead by 47.7 points (+57.0% versus +9.3%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.04 to 0.68. One caveat on sizing: IBKR is 2.1 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.
IBKR vs XLF: side by side
| IBKR (Interactive Brokers) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +57.0% | +9.3% |
| 5-year return | +516.0% | +64.2% |
| Volatility (ann.) | 33.9% | 16.2% |
| Beta vs S&P 500 | 1.37 | 0.84 |
| Max drawdown (3Y) | -38.7% | -15.5% |
| Market cap | $164.5B | – |
| P/E (trailing) | 38.5 | – |
| Dividend yield | 0.34% | 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 | IBKR | XLF |
|---|---|---|
| 2022 | -8.4% | -10.6% |
| 2023 | +15.1% | +12.0% |
| 2024 | +114.4% | +30.6% |
| 2025 | +46.4% | +14.9% |
| 2026 | +50.4% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
IBKR represents 0.53% of XLF's portfolio, so part of any move in XLF is IBKR itself, and the correlation between them is partly mechanical.
Are IBKR and XLF good diversifiers for each other?
Reasonably. At 0.47, IBKR and XLF keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between IBKR and XLF?
The IBKR/XLF correlation stands at 0.47 on a 3-year window (1 year: 0.33, 5 years: 0.52), computed from weekly returns as of 2026-08-27.
Is XLF a good diversifier for IBKR?
Reasonably. At 0.47, IBKR and XLF keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.47 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: IBKR correlations · XLF correlations
