MTUM vs XLE: Correlation & Overlap
How closely do iShares MSCI USA Momentum Factor ETF (MTUM) and Energy Select Sector SPDR Fund (XLE) trade together? Their weekly returns over three years give a correlation of 0.10, which is weak. The two funds also share 11.8% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MTUM and XLE?
Over the past 3 years, MTUM and XLE moved with a correlation of 0.10, which is weak. Lately the two have drifted apart, with the 1-year correlation at -0.40 versus 0.10 over 3 years. Over 5 years the correlation is 0.27, and the annualized covariance of weekly returns is 49.3 %².
Within MTUM's tracked universe of 109 assets, XLE comes in at #99 by 3-year correlation. The last year tells two different stories: XLE led by 18.8 percentage points, +25.2% for MTUM against +44.0% for XLE. This link changes with the market regime, having swung between -0.46 and 0.72 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.
MTUM vs XLE: side by side
| MTUM (iShares MSCI USA Momentum Factor ETF) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.2% | +44.0% |
| 5-year return | +76.1% | +206.7% |
| Volatility (ann.) | 20.6% | 23.1% |
| Beta vs S&P 500 | 1.25 | 0.27 |
| Max drawdown (3Y) | -21.0% | -20.1% |
| Dividend yield | 0.62% | 2.55% |
| Expense ratio | 0.15% | 0.08% |
| Assets under management | $25.3B | $39.2B |
| Sector / category | ETF · US Style | Sector ETF |
MTUM, iShares's Large Blend fund, carries $25.3B under management, 126 holdings, a 0.15% expense ratio, a 0.62% trailing dividend yield. XLE is an Equity Energy fund from State Street Investment Management: $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% trailing dividend yield.
Portfolio overlap between MTUM and XLE
The two portfolios are largely distinct, with 17 holdings in common adding up to 11.8% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in MTUM | Weight in XLE |
|---|---|---|
| XOM | 3.78% | 20.03% |
| CVX | 1.75% | 14.84% |
| COP | 0.87% | 6.30% |
| VLO | 0.70% | 5.05% |
| MPC | 0.53% | 5.40% |
| SLB | 0.50% | 4.46% |
| PSX | 0.49% | 5.37% |
| WMB | 0.47% | 3.84% |
| TRGP | 0.44% | 3.74% |
| BKR | 0.39% | 3.65% |
| EOG | 0.36% | 4.24% |
| DVN | 0.33% | 3.20% |
| KMI | 0.28% | 3.72% |
| OKE | 0.27% | 3.55% |
| OXY | 0.26% | 2.52% |
Largest positions held only by MTUM: MU (6.60%), AMD (5.09%), AVGO (4.25%), INTC (3.91%), JNJ (3.67%). Only by XLE: EQT (2.03%), EXE (1.37%), TPL (1.27%), APA (0.86%), IXPU6 (0.01%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | MTUM | XLE |
|---|---|---|
| 2022 | -18.3% | +64.3% |
| 2023 | +9.1% | -0.6% |
| 2024 | +32.9% | +5.6% |
| 2025 | +22.1% | +7.9% |
| 2026 | +21.8% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MTUM and XLE good diversifiers for each other?
By historical standards, yes. A correlation of 0.10 means the two rarely move for the same reasons.
FAQ
What is the correlation between MTUM and XLE?
As of 2026-08-27, the correlation of weekly returns between MTUM and XLE is 0.10 over 3 years, -0.40 over 1 year and 0.27 over 5 years.
Is XLE a good diversifier for MTUM?
By historical standards, yes. A correlation of 0.10 means the two rarely move for the same reasons.
How much do MTUM and XLE overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 11.8% by weight over 17 common positions.
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Hubs: MTUM correlations · XLE correlations
