ICLN vs XLU: Correlation & Overlap
iShares Global Clean Energy ETF (ICLN) and Utilities Select Sector SPDR Fund (XLU) show a weak relationship: their 3-year correlation of weekly returns is 0.29. By holdings, the two funds overlap 0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ICLN and XLU?
Over the past 3 years, ICLN and XLU moved with a correlation of 0.29, which is weak. Lately the two have drifted apart, with the 1-year correlation at 0.01 versus 0.29 over 3 years. Over 5 years the correlation is 0.40, and the annualized covariance of weekly returns is 108.2 %².
Within ICLN's tracked universe of 78 assets, XLU comes in at #64 by 3-year correlation. The last year tells two different stories: ICLN led by 21.5 percentage points, +25.6% for ICLN against +4.1% for XLU. The relationship is regime-dependent: the rolling one-year correlation swung between -0.01 and 0.57 over the past three years, so this pair behaves very differently depending on the market environment. Note the risk asymmetry: ICLN runs 1.5 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 XLU: side by side
| ICLN (iShares Global Clean Energy ETF) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.6% | +4.1% |
| 5-year return | -18.4% | +46.3% |
| Volatility (ann.) | 24.0% | 15.8% |
| Beta vs S&P 500 | 0.78 | 0.26 |
| Max drawdown (3Y) | -34.6% | -13.1% |
| Dividend yield | 1.05% | 2.70% |
| Expense ratio | 0.39% | 0.08% |
| Assets under management | $2.3B | $23.1B |
| 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. XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Portfolio overlap between ICLN and XLU
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 XLU: NEE (12.94%), SO (7.45%), DUK (7.00%), CEG (6.58%), AEP (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 | XLU |
|---|---|---|
| 2022 | -5.4% | +1.4% |
| 2023 | -20.4% | -7.2% |
| 2024 | -25.7% | +23.3% |
| 2025 | +47.0% | +16.0% |
| 2026 | +8.8% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ICLN and XLU good diversifiers for each other?
A fair diversifier. At 0.29, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between ICLN and XLU?
The ICLN/XLU correlation stands at 0.29 on a 3-year window (1 year: 0.01, 5 years: 0.40), computed from weekly returns as of 2026-08-27.
Is XLU a good diversifier for ICLN?
A fair diversifier. At 0.29, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do ICLN and XLU 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-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/icln-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ICLN correlations · XLU correlations
