MDY vs XLP: Correlation & Overlap
SPDR S&P MidCap 400 ETF (MDY) and Consumer Staples Select Sector SPDR Fund (XLP) show a moderate relationship: their 3-year correlation of weekly returns is 0.46. Looking through to holdings, 0% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MDY and XLP?
Over the past 3 years, MDY and XLP moved with a correlation of 0.46, which is moderate. Little has changed lately, as the 1-year reading of 0.46 lands near the 3-year figure. Over 5 years the correlation is 0.55, and the annualized covariance of weekly returns is 84.3 %².
Among the 359 assets we track against MDY, XLP ranks #333 by 3-year correlation. On 12-month performance MDY holds a 10.0-point edge, +18.3% against +8.3%. The rolling one-year correlation moved between 0.32 and 0.59 over the past three years, a moderate range.
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 XLP: side by side
| MDY (SPDR S&P MidCap 400 ETF) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +18.3% | +8.3% |
| 5-year return | +47.5% | +34.7% |
| Volatility (ann.) | 16.5% | 11.1% |
| Beta vs S&P 500 | 0.91 | 0.23 |
| Max drawdown (3Y) | -24.0% | -9.7% |
| Dividend yield | 1.02% | 2.58% |
| Expense ratio | 0.23% | 0.08% |
| Assets under management | $26.5B | $14.6B |
| 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, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Portfolio overlap between MDY and XLP
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 XLP: WMT (9.62%), COST (8.92%), KO (7.34%), PG (7.10%), PM (6.36%).
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 | XLP |
|---|---|---|
| 2022 | -13.3% | -0.8% |
| 2023 | +16.1% | -0.8% |
| 2024 | +13.6% | +12.2% |
| 2025 | +7.2% | +1.5% |
| 2026 | +16.4% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MDY and XLP good diversifiers for each other?
Reasonably. At 0.46, MDY and XLP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between MDY and XLP?
Using weekly returns as of 2026-08-27: 0.46 over 3 years, with 0.46 over the last year and 0.55 over 5 years.
Is XLP a good diversifier for MDY?
Reasonably. At 0.46, MDY and XLP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do MDY and XLP overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
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Hubs: MDY correlations · XLP correlations
