MTUM vs XLB: Correlation & Overlap
iShares MSCI USA Momentum Factor ETF (MTUM) and Materials Select Sector SPDR Fund (XLB) show a moderate relationship: their 3-year correlation of weekly returns is 0.51. The two funds also share 2.4% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MTUM and XLB?
On 3 years of weekly data the MTUM/XLB correlation comes out at 0.51, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.32 versus 0.51 over 3 years. The 5-year figure is 0.61, and annualized covariance runs at 177.1 %².
Among the 109 assets we track against MTUM, XLB ranks #82 by 3-year correlation. Over the last 12 months MTUM came out ahead by 7.6 percentage points (+25.2% against +17.6%). The rolling one-year correlation moved between 0.32 and 0.77 over the past three years, a moderate range.
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.
MTUM vs XLB: side by side
| MTUM (iShares MSCI USA Momentum Factor ETF) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.2% | +17.6% |
| 5-year return | +76.1% | +36.9% |
| Volatility (ann.) | 20.6% | 16.7% |
| Beta vs S&P 500 | 1.25 | 0.72 |
| Max drawdown (3Y) | -21.0% | -23.2% |
| Dividend yield | 0.62% | 1.68% |
| Expense ratio | 0.15% | 0.08% |
| Assets under management | $25.3B | $8.3B |
| Sector / category | ETF · US Style | Sector ETF |
MTUM is a Large Blend fund from iShares: $25.3B under management, 126 holdings, a 0.15% expense ratio, a 0.62% trailing dividend yield. XLB is a Natural Resources fund from State Street Investment Management: $8.3B under management, 26 holdings, a 0.08% expense ratio, a 1.68% trailing dividend yield.
Portfolio overlap between MTUM and XLB
The two portfolios are largely distinct, with 8 holdings in common adding up to 2.4% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in MTUM | Weight in XLB |
|---|---|---|
| NEM | 0.76% | 8.02% |
| FCX | 0.51% | 6.48% |
| NUE | 0.36% | 4.28% |
| CTVA | 0.26% | 4.72% |
| STLD | 0.19% | 3.73% |
| DOW | 0.13% | 2.85% |
| CF | 0.11% | 2.52% |
| LYB | 0.09% | 2.11% |
Largest positions held only by MTUM: MU (6.60%), AMD (5.09%), AVGO (4.25%), INTC (3.91%), XOM (3.78%). Only by XLB: LIN (12.94%), SHW (4.87%), ECL (4.80%), APD (4.71%), VMC (4.26%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 8 common positions shown.
Year-by-year returns
| Year | MTUM | XLB |
|---|---|---|
| 2022 | -18.3% | -12.3% |
| 2023 | +9.1% | +12.5% |
| 2024 | +32.9% | +0.1% |
| 2025 | +22.1% | +9.9% |
| 2026 | +21.8% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MTUM and XLB good diversifiers for each other?
To a limited degree. At 0.51 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 MTUM and XLB?
Using weekly returns as of 2026-08-27: 0.51 over 3 years, with 0.32 over the last year and 0.61 over 5 years.
Is XLB a good diversifier for MTUM?
To a limited degree. At 0.51 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 MTUM and XLB overlap?
The two funds share 8 holdings amounting to 2.4% of weight, per issuer portfolio files dated 2026-08-26.
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Hubs: MTUM correlations · XLB correlations
