MDY vs XLE: Correlation & Overlap
How closely do SPDR S&P MidCap 400 ETF (MDY) and Energy Select Sector SPDR Fund (XLE) trade together? Their weekly returns over three years give a correlation of 0.33, 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 MDY and XLE?
On 3 years of weekly data the MDY/XLE correlation comes out at 0.33, moderate. The past 12 months show a weaker link (-0.24) than the 3-year average (0.33). The 5-year figure is 0.39, and annualized covariance runs at 125.6 %².
By 3-year correlation, XLE places #348 of the 359 assets tracked against MDY. The last year tells two different stories: XLE led by 25.7 percentage points, +18.3% for MDY against +44.0% for XLE. The relationship is regime-dependent: the rolling one-year correlation swung between -0.24 and 0.68 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 XLE: side by side
| MDY (SPDR S&P MidCap 400 ETF) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +18.3% | +44.0% |
| 5-year return | +47.5% | +206.7% |
| Volatility (ann.) | 16.5% | 23.1% |
| Beta vs S&P 500 | 0.91 | 0.27 |
| Max drawdown (3Y) | -24.0% | -20.1% |
| Dividend yield | 1.02% | 2.55% |
| Expense ratio | 0.23% | 0.08% |
| Assets under management | $26.5B | $39.2B |
| Sector / category | ETF · US Small & Mid Cap | Sector ETF |
MDY is a Mid-Cap Blend fund from State Street Investment Management: $26.5B under management, 400 holdings, a 0.23% expense ratio, a 1.02% trailing dividend yield. XLE is an Equity Energy fund from State Street Investment Management: $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% trailing dividend yield.
Portfolio overlap between MDY and XLE
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 MDY: TWLO (0.95%), P (0.94%), ILMN (0.93%), FTI (0.83%), ATI (0.80%). Only by XLE: XOM (20.03%), CVX (14.84%), COP (6.30%), MPC (5.40%), PSX (5.37%).
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 | XLE |
|---|---|---|
| 2022 | -13.3% | +64.3% |
| 2023 | +16.1% | -0.6% |
| 2024 | +13.6% | +5.6% |
| 2025 | +7.2% | +7.9% |
| 2026 | +16.4% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MDY and XLE good diversifiers for each other?
Reasonably. At 0.33, MDY and XLE keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between MDY and XLE?
Using weekly returns as of 2026-08-27: 0.33 over 3 years, with -0.24 over the last year and 0.39 over 5 years.
Is XLE a good diversifier for MDY?
Reasonably. At 0.33, MDY and XLE keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do MDY and XLE overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mdy-vs-xle.json
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Hubs: MDY correlations · XLE correlations
