MDY vs XLC: Correlation & Overlap
Measured on weekly returns over the past three years, SPDR S&P MidCap 400 ETF (MDY) and Communication Services Select Sector SPDR Fund (XLC) carry a correlation of 0.58, a moderate link. 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 MDY and XLC?
On 3 years of weekly data the MDY/XLC correlation comes out at 0.58, moderate. The link has loosened recently: the 1-year correlation (0.35) runs below the 3-year figure (0.58). The 5-year figure is 0.66, and annualized covariance runs at 152.6 %².
Among the 359 assets we track against MDY, XLC ranks #217 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months MDY outperformed by 16.8 percentage points (+18.3% for MDY against +1.5% for XLC). The relationship is regime-dependent: the rolling one-year correlation swung between 0.32 and 0.84 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.
MDY vs XLC: side by side
| MDY (SPDR S&P MidCap 400 ETF) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +18.3% | +1.5% |
| 5-year return | +47.5% | +37.5% |
| Volatility (ann.) | 16.5% | 16.0% |
| Beta vs S&P 500 | 0.91 | 0.90 |
| Max drawdown (3Y) | -24.0% | -18.0% |
| Dividend yield | 1.02% | 1.32% |
| Expense ratio | 0.23% | 0.08% |
| Assets under management | $26.5B | $21.7B |
| Sector / category | ETF · US Small & Mid Cap | Sector ETF |
On the fund side, MDY sits in the Mid-Cap Blend category at State Street Investment Management, with $26.5B under management, 400 holdings, a 0.23% expense ratio, a 1.02% trailing dividend yield. On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Portfolio overlap between MDY and XLC
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 MDY: TWLO (0.95%), P (0.94%), ILMN (0.93%), FTI (0.83%), ATI (0.80%). Only by XLC: META (16.73%), GOOGL (10.29%), GOOG (8.22%), T (5.20%), VZ (4.99%).
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 | MDY | XLC |
|---|---|---|
| 2022 | -13.3% | -37.6% |
| 2023 | +16.1% | +52.8% |
| 2024 | +13.6% | +34.7% |
| 2025 | +7.2% | +23.1% |
| 2026 | +16.4% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MDY and XLC good diversifiers for each other?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between MDY and XLC?
The MDY/XLC correlation stands at 0.58 on a 3-year window (1 year: 0.35, 5 years: 0.66), computed from weekly returns as of 2026-08-27.
Is XLC a good diversifier for MDY?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do MDY and XLC overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
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Hubs: MDY correlations · XLC correlations
