ICLN vs XLY: Correlation & Overlap
How closely do iShares Global Clean Energy ETF (ICLN) and Consumer Discretionary Select Sector SPDR Fund (XLY) trade together? Their weekly returns over three years give a correlation of 0.42, which is moderate. 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 XLY?
Over the past 3 years, ICLN and XLY moved with a correlation of 0.42, which is moderate. The relationship has been stable: the 1-year correlation (0.43) sits close to the 3-year figure. Over 5 years the correlation is 0.49, and the annualized covariance of weekly returns is 197.3 %².
By 3-year correlation, XLY places #53 of the 78 assets tracked against ICLN. The last year tells two different stories: ICLN led by 25.7 percentage points, +25.6% for ICLN against -0.1% for XLY. The relationship is regime-dependent: the rolling one-year correlation swung between 0.14 and 0.66 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 XLY: side by side
| ICLN (iShares Global Clean Energy ETF) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.6% | -0.1% |
| 5-year return | -18.4% | +31.8% |
| Volatility (ann.) | 24.0% | 19.7% |
| Beta vs S&P 500 | 0.78 | 1.15 |
| Max drawdown (3Y) | -34.6% | -26.0% |
| Dividend yield | 1.05% | 0.78% |
| Expense ratio | 0.39% | 0.08% |
| Assets under management | $2.3B | $22.5B |
| 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. XLY is a Consumer Cyclical fund from State Street Investment Management: $22.5B under management, 47 holdings, a 0.08% expense ratio, a 0.78% trailing dividend yield.
Portfolio overlap between ICLN and XLY
The two portfolios are largely distinct, with 0 holdings in common adding up to 0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by ICLN: FSLR (7.87%), 600900 (7.64%), BE (7.36%), NXT (6.81%), ENPH (4.70%). Only by XLY: AMZN (24.32%), TSLA (16.18%), HD (5.54%), MCD (4.11%), BKNG (4.04%).
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 | XLY |
|---|---|---|
| 2022 | -5.4% | -36.3% |
| 2023 | -20.4% | +39.6% |
| 2024 | -25.7% | +26.5% |
| 2025 | +47.0% | +7.4% |
| 2026 | +8.8% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ICLN and XLY good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.42 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between ICLN and XLY?
Using weekly returns as of 2026-08-27: 0.42 over 3 years, with 0.43 over the last year and 0.49 over 5 years.
Is XLY a good diversifier for ICLN?
Yes, to a useful degree: a correlation of 0.42 leaves real independence between the two, which historically damped combined volatility.
How much do ICLN and XLY overlap?
The two funds share 0 holdings amounting to 0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/icln-vs-xly.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/icln-vs-xly/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ICLN correlations · XLY correlations
