MDY vs XLY: Correlation & Overlap
SPDR S&P MidCap 400 ETF (MDY) and Consumer Discretionary Select Sector SPDR Fund (XLY) show a strong relationship: their 3-year correlation of weekly returns is 0.71. 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 XLY?
Across a 3-year window, the weekly returns of MDY and XLY correlate at 0.71, strong. The link has loosened recently: the 1-year correlation (0.58) runs below the 3-year figure (0.71). Stretching to 5 years gives 0.78, with an annualized covariance of 228.7 %².
Among the 359 assets we track against MDY, XLY ranks #60 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months MDY outperformed by 18.4 percentage points (+18.3% for MDY against -0.1% for XLY). Across three years, the rolling one-year figure varied moderately, from 0.60 to 0.85.
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 XLY: side by side
| MDY (SPDR S&P MidCap 400 ETF) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +18.3% | -0.1% |
| 5-year return | +47.5% | +31.8% |
| Volatility (ann.) | 16.5% | 19.7% |
| Beta vs S&P 500 | 0.91 | 1.15 |
| Max drawdown (3Y) | -24.0% | -26.0% |
| Dividend yield | 1.02% | 0.78% |
| Expense ratio | 0.23% | 0.08% |
| Assets under management | $26.5B | $22.5B |
| 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. XLY is a Consumer Cyclical fund from State Street Investment Management: $22.5B under management, 47 holdings, a 0.08% expense ratio, a 0.78% trailing dividend yield.
Portfolio overlap between MDY and XLY
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 XLY: AMZN (24.32%), TSLA (16.18%), HD (5.54%), MCD (4.11%), BKNG (4.04%).
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 | XLY |
|---|---|---|
| 2022 | -13.3% | -36.3% |
| 2023 | +16.1% | +39.6% |
| 2024 | +13.6% | +26.5% |
| 2025 | +7.2% | +7.4% |
| 2026 | +16.4% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MDY and XLY good diversifiers for each other?
To a limited degree. At 0.71 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between MDY and XLY?
Using weekly returns as of 2026-08-27: 0.71 over 3 years, with 0.58 over the last year and 0.78 over 5 years.
Is XLY a good diversifier for MDY?
To a limited degree. At 0.71 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do MDY and XLY overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mdy-vs-xly.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mdy-vs-xly/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: MDY correlations · XLY correlations
