MDY vs XLU: Correlation & Overlap
SPDR S&P MidCap 400 ETF (MDY) and Utilities Select Sector SPDR Fund (XLU) show a moderate relationship: their 3-year correlation of weekly returns is 0.37. 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 XLU?
Over the past 3 years, MDY and XLU moved with a correlation of 0.37, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.13 versus 0.37 over 3 years. Over 5 years the correlation is 0.44, and the annualized covariance of weekly returns is 95.7 %².
By 3-year correlation, XLU places #347 of the 359 assets tracked against MDY. Over the last 12 months MDY came out ahead by 14.2 percentage points (+18.3% against +4.1%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.07 to 0.63.
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 XLU: side by side
| MDY (SPDR S&P MidCap 400 ETF) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +18.3% | +4.1% |
| 5-year return | +47.5% | +46.3% |
| Volatility (ann.) | 16.5% | 15.8% |
| Beta vs S&P 500 | 0.91 | 0.26 |
| Max drawdown (3Y) | -24.0% | -13.1% |
| Dividend yield | 1.02% | 2.70% |
| Expense ratio | 0.23% | 0.08% |
| Assets under management | $26.5B | $23.1B |
| Sector / category | ETF · US Small & Mid Cap | Sector ETF |
MDY, State Street Investment Management's Mid-Cap Blend fund, carries $26.5B under management, 400 holdings, a 0.23% expense ratio, a 1.02% trailing dividend yield. XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Portfolio overlap between MDY and XLU
The two portfolios are largely distinct. Weighing the shared positions, 0% of the two funds is identical, spread across 0 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by MDY: TWLO (0.95%), P (0.94%), ILMN (0.93%), FTI (0.83%), ATI (0.80%). Only by XLU: NEE (12.94%), SO (7.45%), DUK (7.00%), CEG (6.58%), AEP (4.94%).
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 | XLU |
|---|---|---|
| 2022 | -13.3% | +1.4% |
| 2023 | +16.1% | -7.2% |
| 2024 | +13.6% | +23.3% |
| 2025 | +7.2% | +16.0% |
| 2026 | +16.4% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MDY and XLU good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.37 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between MDY and XLU?
Using weekly returns as of 2026-08-27: 0.37 over 3 years, with 0.13 over the last year and 0.44 over 5 years.
Is XLU a good diversifier for MDY?
Yes, to a useful degree: a correlation of 0.37 leaves real independence between the two, which historically damped combined volatility.
How much do MDY and XLU overlap?
The two funds share 0 holdings amounting to 0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mdy-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mdy-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MDY correlations · XLU correlations
