IFF vs XLB: Correlation
International Flavors & Fragrances (IFF) and Materials Select Sector SPDR Fund (XLB) show a strong relationship: their 3-year correlation of weekly returns is 0.60.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IFF and XLB?
Over the past 3 years, IFF and XLB moved with a correlation of 0.60, which is strong. Little has changed lately, as the 1-year reading of 0.64 lands near the 3-year figure. Over 5 years the correlation is 0.63, and the annualized covariance of weekly returns is 295.4 %².
In IFF's tracked universe of 32 assets, XLB sits right near the top at #2. Their recent paths diverged sharply: over the last 12 months IFF outperformed by 15.6 percentage points (+33.2% for IFF against +17.6% for XLB). Stability stands out here, with the rolling one-year correlation confined to 0.47 through 0.71. Risk is not evenly split, since IFF carries 1.8 times the volatility of the other side.
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.
IFF vs XLB: side by side
| IFF (International Flavors & Fragrances) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +33.2% | +17.6% |
| 5-year return | -34.3% | +36.9% |
| Volatility (ann.) | 29.5% | 16.7% |
| Beta vs S&P 500 | 0.69 | 0.72 |
| Max drawdown (3Y) | -42.6% | -23.2% |
| Market cap | $22.2B | – |
| P/E (trailing) | – | – |
| Dividend yield | 1.84% | 1.68% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.3B |
| Sector / category | Materials | Sector ETF |
XLB is a Natural Resources fund from State Street Investment Management: $8.3B under management, 26 holdings, a 0.08% expense ratio, a 1.68% trailing dividend yield.
Year-by-year returns
| Year | IFF | XLB |
|---|---|---|
| 2022 | -28.3% | -12.3% |
| 2023 | -19.5% | +12.5% |
| 2024 | +6.3% | +0.1% |
| 2025 | -18.4% | +9.9% |
| 2026 | +30.3% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
IFF represents 2.9% of XLB's portfolio, so part of any move in XLB is IFF itself, and the correlation between them is partly mechanical.
Are IFF and XLB good diversifiers for each other?
Only partially. A correlation of 0.60 means IFF and XLB 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 IFF and XLB?
The IFF/XLB correlation stands at 0.60 on a 3-year window (1 year: 0.64, 5 years: 0.63), computed from weekly returns as of 2026-08-27.
Is XLB a good diversifier for IFF?
Only partially. A correlation of 0.60 means IFF and XLB share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.60 mean?
A reading of 0.60 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/iff-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/iff-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IFF correlations · XLB correlations
