MRSH vs XLF: Correlation
How closely do Marsh McLennan (MRSH) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.47, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MRSH and XLF?
On 3 years of weekly data the MRSH/XLF correlation comes out at 0.47, moderate. The relationship has been stable: the 1-year correlation (0.48) sits close to the 3-year figure. The 5-year figure is 0.57, and annualized covariance runs at 136.6 %².
Among the 38 assets we track against MRSH, XLF ranks #18 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLF outperformed by 15.3 percentage points (-6.0% for MRSH against +9.3% for XLF). This link changes with the market regime, having swung between 0.06 and 0.75 on a rolling one-year basis.
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.
MRSH vs XLF: side by side
| MRSH (Marsh McLennan) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -6.0% | +9.3% |
| 5-year return | +31.3% | +64.2% |
| Volatility (ann.) | 18.1% | 16.2% |
| Beta vs S&P 500 | 0.33 | 0.84 |
| Max drawdown (3Y) | -34.4% | -15.5% |
| Market cap | $90.7B | – |
| P/E (trailing) | 23.6 | – |
| Dividend yield | 1.91% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | Financials | 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 | MRSH | XLF |
|---|---|---|
| 2022 | -3.5% | -10.6% |
| 2023 | +16.1% | +12.0% |
| 2024 | +13.7% | +30.6% |
| 2025 | -11.3% | +14.9% |
| 2026 | +4.0% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
MRSH represents 1.13% of XLF's portfolio, so part of any move in XLF is MRSH itself, and the correlation between them is partly mechanical.
Are MRSH and XLF good diversifiers for each other?
Reasonably. At 0.47, MRSH and XLF keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between MRSH and XLF?
Using weekly returns as of 2026-08-27: 0.47 over 3 years, with 0.48 over the last year and 0.57 over 5 years.
Is XLF a good diversifier for MRSH?
Reasonably. At 0.47, MRSH and XLF keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.47 mean?
On the −1 to +1 scale, 0.47 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: MRSH correlations · XLF correlations
