MTUM vs XLC: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI USA Momentum Factor ETF (MTUM) and Communication Services Select Sector SPDR Fund (XLC) carry a correlation of 0.66, a strong link. Looking through to holdings, 4.8% 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 MTUM and XLC?
On 3 years of weekly data the MTUM/XLC correlation comes out at 0.66, strong. Lately the two have drifted apart, with the 1-year correlation at 0.41 versus 0.66 over 3 years. The 5-year figure is 0.62, and annualized covariance runs at 215.0 %².
Among the 109 assets we track against MTUM, XLC ranks #42 by 3-year correlation. The last year tells two different stories: MTUM led by 23.7 percentage points, +25.2% for MTUM against +1.5% for XLC. The rolling one-year correlation moved between 0.36 and 0.85 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 XLC: side by side
| MTUM (iShares MSCI USA Momentum Factor ETF) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.2% | +1.5% |
| 5-year return | +76.1% | +37.5% |
| Volatility (ann.) | 20.6% | 16.0% |
| Beta vs S&P 500 | 1.25 | 0.90 |
| Max drawdown (3Y) | -21.0% | -18.0% |
| Dividend yield | 0.62% | 1.32% |
| Expense ratio | 0.15% | 0.08% |
| Assets under management | $25.3B | $21.7B |
| Sector / category | ETF · US Style | Sector ETF |
On the fund side, MTUM sits in the Large Blend category at iShares, with $25.3B under management, 126 holdings, a 0.15% expense ratio, a 0.62% trailing dividend yield. 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.
Portfolio overlap between MTUM and XLC
The two portfolios are largely distinct, with 4 holdings in common adding up to 4.8% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in MTUM | Weight in XLC |
|---|---|---|
| GOOGL | 2.44% | 10.29% |
| GOOG | 1.89% | 8.22% |
| WBD | 0.34% | 4.65% |
| ECHO | 0.08% | 2.10% |
Largest positions held only by MTUM: MU (6.60%), AMD (5.09%), AVGO (4.25%), INTC (3.91%), XOM (3.78%). Only by XLC: META (16.73%), T (5.20%), VZ (4.99%), CMCSA (4.93%), DIS (4.88%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 4 common positions shown.
Year-by-year returns
| Year | MTUM | XLC |
|---|---|---|
| 2022 | -18.3% | -37.6% |
| 2023 | +9.1% | +52.8% |
| 2024 | +32.9% | +34.7% |
| 2025 | +22.1% | +23.1% |
| 2026 | +21.8% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MTUM and XLC good diversifiers for each other?
Somewhat, no more. With 0.66 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between MTUM and XLC?
Using weekly returns as of 2026-08-27: 0.66 over 3 years, with 0.41 over the last year and 0.62 over 5 years.
Is XLC a good diversifier for MTUM?
Somewhat, no more. With 0.66 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do MTUM and XLC overlap?
4.8% by weight, across 4 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mtum-vs-xlc.json
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[](https://www.pairbook.io/pair/mtum-vs-xlc/)
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Hubs: MTUM correlations · XLC correlations
