MFC vs XLF: Correlation
Manulife Financial Corporation (MFC) and Financial Select Sector SPDR Fund (XLF) show a strong relationship: their 3-year correlation of weekly returns is 0.71.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MFC and XLF?
Over the past 3 years, MFC and XLF moved with a correlation of 0.71, which is strong. The link has loosened recently: the 1-year correlation (0.60) runs below the 3-year figure (0.71). Over 5 years the correlation is 0.75, and the annualized covariance of weekly returns is 243.7 %².
Few assets follow MFC as closely as XLF, which ranks #1 of 12 tracked partners. The last year tells two different stories: MFC led by 37.0 percentage points, +46.3% for MFC against +9.3% for XLF.
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.
MFC vs XLF: side by side
| MFC (Manulife Financial Corporation) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +46.3% | +9.3% |
| 5-year return | +174.6% | +64.2% |
| Volatility (ann.) | 21.2% | 16.2% |
| Beta vs S&P 500 | 0.87 | 0.84 |
| Max drawdown (3Y) | -16.8% | -15.5% |
| Market cap | $71.7B | – |
| P/E (trailing) | 16.2 | – |
| Dividend yield | 4.28% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | US Listed | Sector ETF |
XLF is a Financial fund from State Street Investment Management: $57.9B under management, 77 holdings, a 0.08% expense ratio, a 1.42% trailing dividend yield.
Year-by-year returns
| Year | MFC | XLF |
|---|---|---|
| 2022 | -1.2% | -10.6% |
| 2023 | +31.1% | +12.0% |
| 2024 | +45.2% | +30.6% |
| 2025 | +20.6% | +14.9% |
| 2026 | +22.3% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MFC and XLF good diversifiers for each other?
Only partially. A correlation of 0.71 means MFC and XLF share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between MFC and XLF?
The MFC/XLF correlation stands at 0.71 on a 3-year window (1 year: 0.60, 5 years: 0.75), computed from weekly returns as of 2026-08-27.
Is XLF a good diversifier for MFC?
Only partially. A correlation of 0.71 means MFC and XLF share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.71 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: MFC correlations · XLF correlations
