MSCI vs XLC: Correlation
MSCI (MSCI) and Communication Services Select Sector SPDR Fund (XLC) show a moderate relationship: their 3-year correlation of weekly returns is 0.48.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MSCI and XLC?
On 3 years of weekly data the MSCI/XLC correlation comes out at 0.48, moderate. Recent behaviour matches the longer record: 0.47 over 1 year against 0.48 over 3. The 5-year figure is 0.55, and annualized covariance runs at 195.9 %².
Among the 27 assets we track against MSCI, XLC ranks #14 by 3-year correlation. Their 12-month results are close: +1.3% for MSCI against +1.5% for XLC. Across three years, the rolling one-year figure varied moderately, from 0.29 to 0.65. Risk is not evenly split, since MSCI carries 1.6 times the volatility of the other side.
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.
MSCI vs XLC: side by side
| MSCI (MSCI) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +1.3% | +1.5% |
| 5-year return | -5.6% | +37.5% |
| Volatility (ann.) | 25.4% | 16.0% |
| Beta vs S&P 500 | 0.85 | 0.90 |
| Max drawdown (3Y) | -26.0% | -18.0% |
| Market cap | $41.4B | – |
| P/E (trailing) | 30.9 | – |
| Dividend yield | 1.36% | 1.32% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $21.7B |
| Sector / category | Financials | Sector ETF |
On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Year-by-year returns
| Year | MSCI | XLC |
|---|---|---|
| 2022 | -23.3% | -37.6% |
| 2023 | +22.9% | +52.8% |
| 2024 | +7.3% | +34.7% |
| 2025 | -3.2% | +23.1% |
| 2026 | +0.3% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MSCI and XLC good diversifiers for each other?
A fair diversifier. At 0.48, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between MSCI and XLC?
As of 2026-08-27, the correlation of weekly returns between MSCI and XLC is 0.48 over 3 years, 0.47 over 1 year and 0.55 over 5 years.
Is XLC a good diversifier for MSCI?
A fair diversifier. At 0.48, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.48 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/msci-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/msci-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MSCI correlations · XLC correlations
