ICLN vs XLF: Correlation & Overlap
How closely do iShares Global Clean Energy ETF (ICLN) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.26, which is weak. 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 XLF?
Over the past 3 years, ICLN and XLF moved with a correlation of 0.26, which is weak. Lately the two have drifted apart, with the 1-year correlation at 0.09 versus 0.26 over 3 years. Over 5 years the correlation is 0.40, and the annualized covariance of weekly returns is 101.4 %².
Within ICLN's tracked universe of 78 assets, XLF comes in at #65 by 3-year correlation. Correlation aside, the last 12 months split them widely, with ICLN ahead by 16.3 points (+25.6% versus +9.3%). This link changes with the market regime, having swung between -0.02 and 0.68 on a rolling one-year basis.
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 XLF: side by side
| ICLN (iShares Global Clean Energy ETF) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.6% | +9.3% |
| 5-year return | -18.4% | +64.2% |
| Volatility (ann.) | 24.0% | 16.2% |
| Beta vs S&P 500 | 0.78 | 0.84 |
| Max drawdown (3Y) | -34.6% | -15.5% |
| Dividend yield | 1.05% | 1.42% |
| Expense ratio | 0.39% | 0.08% |
| Assets under management | $2.3B | $57.9B |
| Sector / category | ETF · Thematic | Sector ETF |
ICLN, iShares's Miscellaneous Sector fund, carries $2.3B under management, 102 holdings, a 0.39% expense ratio, a 1.05% trailing dividend yield. 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.
Portfolio overlap between ICLN and XLF
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 ICLN: FSLR (7.87%), 600900 (7.64%), BE (7.36%), NXT (6.81%), ENPH (4.70%). Only by XLF: JPM (11.61%), BRK.B (11.25%), V (7.74%), MA (5.87%), BAC (4.94%).
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 | XLF |
|---|---|---|
| 2022 | -5.4% | -10.6% |
| 2023 | -20.4% | +12.0% |
| 2024 | -25.7% | +30.6% |
| 2025 | +47.0% | +14.9% |
| 2026 | +8.8% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ICLN and XLF good diversifiers for each other?
A fair diversifier. At 0.26, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between ICLN and XLF?
The ICLN/XLF correlation stands at 0.26 on a 3-year window (1 year: 0.09, 5 years: 0.40), computed from weekly returns as of 2026-08-27.
Is XLF a good diversifier for ICLN?
A fair diversifier. At 0.26, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do ICLN and XLF overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
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Hubs: ICLN correlations · XLF correlations
