IEX vs XLI: Correlation
Measured on weekly returns over the past three years, IDEX Corporation (IEX) and Industrial Select Sector SPDR Fund (XLI) carry a correlation of 0.72, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEX and XLI?
On 3 years of weekly data the IEX/XLI correlation comes out at 0.72, strong. Little has changed lately, as the 1-year reading of 0.68 lands near the 3-year figure. The 5-year figure is 0.72, and annualized covariance runs at 264.1 %².
In IEX's tracked universe of 40 assets, XLI sits right near the top at #3. Correlation aside, the last 12 months split them widely, with IEX ahead by 24.7 points (+43.0% versus +18.3%). Stability stands out here, with the rolling one-year correlation confined to 0.66 through 0.81.
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.
IEX vs XLI: side by side
| IEX (IDEX Corporation) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +43.0% | +18.3% |
| 5-year return | +10.5% | +84.0% |
| Volatility (ann.) | 23.3% | 15.7% |
| Beta vs S&P 500 | 0.89 | 0.89 |
| Max drawdown (3Y) | -34.6% | -18.5% |
| Market cap | $17.2B | – |
| P/E (trailing) | 33.8 | – |
| Dividend yield | 1.23% | 1.15% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $32.9B |
| Sector / category | Industrials | Sector ETF |
XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Year-by-year returns
| Year | IEX | XLI |
|---|---|---|
| 2022 | -2.2% | -5.6% |
| 2023 | -3.8% | +18.1% |
| 2024 | -2.4% | +17.3% |
| 2025 | -13.7% | +19.3% |
| 2026 | +32.9% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLI holds IEX at a 0.31% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are IEX and XLI good diversifiers for each other?
Only partially. A correlation of 0.72 means IEX and XLI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between IEX and XLI?
Using weekly returns as of 2026-08-27: 0.72 over 3 years, with 0.68 over the last year and 0.72 over 5 years.
Is XLI a good diversifier for IEX?
Only partially. A correlation of 0.72 means IEX and XLI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.72 mean?
A reading of 0.72 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iex-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iex-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IEX correlations · XLI correlations
