ICLN vs XLE: Correlation & Overlap
How closely do iShares Global Clean Energy ETF (ICLN) and Energy Select Sector SPDR Fund (XLE) trade together? Their weekly returns over three years give a correlation of 0.05, which is near-zero. 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 ICLN and XLE?
Across a 3-year window, the weekly returns of ICLN and XLE correlate at 0.05, near zero, meaning they move largely independently. The link has loosened recently: the 1-year correlation (-0.20) runs below the 3-year figure (0.05). Stretching to 5 years gives 0.19, with an annualized covariance of 29.9 %².
Among the 78 assets we track against ICLN, XLE ranks #68 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLE outperformed by 18.4 percentage points (+25.6% for ICLN against +44.0% for XLE). The relationship is regime-dependent: the rolling one-year correlation swung between -0.17 and 0.47 over the past three years, so this pair behaves very differently depending on the market environment.
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.
ICLN vs XLE: side by side
| ICLN (iShares Global Clean Energy ETF) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.6% | +44.0% |
| 5-year return | -18.4% | +206.7% |
| Volatility (ann.) | 24.0% | 23.1% |
| Beta vs S&P 500 | 0.78 | 0.27 |
| Max drawdown (3Y) | -34.6% | -20.1% |
| Dividend yield | 1.05% | 2.55% |
| Expense ratio | 0.39% | 0.08% |
| Assets under management | $2.3B | $39.2B |
| Sector / category | ETF · Thematic | Sector ETF |
ICLN is a Miscellaneous Sector fund from iShares: $2.3B under management, 102 holdings, a 0.39% expense ratio, a 1.05% trailing dividend yield. XLE is an Equity Energy fund from State Street Investment Management: $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% trailing dividend yield.
Portfolio overlap between ICLN and XLE
The two portfolios are largely distinct. Weighing the shared positions, 0% of the two funds is identical, spread across 0 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by ICLN: FSLR (7.87%), 600900 (7.64%), BE (7.36%), NXT (6.81%), ENPH (4.70%). Only by XLE: XOM (20.03%), CVX (14.84%), COP (6.30%), MPC (5.40%), PSX (5.37%).
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 | ICLN | XLE |
|---|---|---|
| 2022 | -5.4% | +64.3% |
| 2023 | -20.4% | -0.6% |
| 2024 | -25.7% | +5.6% |
| 2025 | +47.0% | +7.9% |
| 2026 | +8.8% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ICLN and XLE good diversifiers for each other?
Yes. With a correlation of 0.05, ICLN and XLE have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between ICLN and XLE?
As of 2026-08-27, the correlation of weekly returns between ICLN and XLE is 0.05 over 3 years, -0.20 over 1 year and 0.19 over 5 years.
Is XLE a good diversifier for ICLN?
Yes. With a correlation of 0.05, ICLN and XLE have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
How much do ICLN and XLE overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/icln-vs-xle.json
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Related comparisons
Hubs: ICLN correlations · XLE correlations
