ICLN vs XLP: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Global Clean Energy ETF (ICLN) and Consumer Staples Select Sector SPDR Fund (XLP) carry a correlation of 0.18, a weak 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 ICLN and XLP?
Over the past 3 years, ICLN and XLP moved with a correlation of 0.18, which is weak. Lately the two have drifted apart, with the 1-year correlation at -0.04 versus 0.18 over 3 years. Over 5 years the correlation is 0.22, and the annualized covariance of weekly returns is 48.7 %².
Among the 78 assets we track against ICLN, XLP ranks #66 by 3-year correlation. The last year tells two different stories: ICLN led by 17.3 percentage points, +25.6% for ICLN against +8.3% for XLP. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.02 to 0.55. Note the risk asymmetry: ICLN runs 2.2 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.
ICLN vs XLP: side by side
| ICLN (iShares Global Clean Energy ETF) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.6% | +8.3% |
| 5-year return | -18.4% | +34.7% |
| Volatility (ann.) | 24.0% | 11.1% |
| Beta vs S&P 500 | 0.78 | 0.23 |
| Max drawdown (3Y) | -34.6% | -9.7% |
| Dividend yield | 1.05% | 2.58% |
| Expense ratio | 0.39% | 0.08% |
| Assets under management | $2.3B | $14.6B |
| 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. On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Portfolio overlap between ICLN and XLP
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 XLP: WMT (9.62%), COST (8.92%), KO (7.34%), PG (7.10%), PM (6.36%).
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 | XLP |
|---|---|---|
| 2022 | -5.4% | -0.8% |
| 2023 | -20.4% | -0.8% |
| 2024 | -25.7% | +12.2% |
| 2025 | +47.0% | +1.5% |
| 2026 | +8.8% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ICLN and XLP good diversifiers for each other?
Yes: at 0.18, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between ICLN and XLP?
Using weekly returns as of 2026-08-27: 0.18 over 3 years, with -0.04 over the last year and 0.22 over 5 years.
Is XLP a good diversifier for ICLN?
Yes: at 0.18, the two have gone their own ways historically, which is what genuine diversification looks like.
How much do ICLN and XLP overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
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Related comparisons
Hubs: ICLN correlations · XLP correlations
