MTUM vs XLI: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI USA Momentum Factor ETF (MTUM) and Industrial Select Sector SPDR Fund (XLI) carry a correlation of 0.75, a strong link. Looking through to holdings, 13.2% 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 XLI?
Over the past 3 years, MTUM and XLI moved with a correlation of 0.75, which is strong. The past 12 months show a weaker link (0.57) than the 3-year average (0.75). Over 5 years the correlation is 0.76, and the annualized covariance of weekly returns is 241.4 %².
Among the 109 assets we track against MTUM, XLI ranks #19 by 3-year correlation. The trailing year gives MTUM the advantage: +25.2% versus +18.3%, a 6.9-point spread. Across three years, the rolling one-year figure varied moderately, from 0.50 to 0.90.
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 XLI: side by side
| MTUM (iShares MSCI USA Momentum Factor ETF) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.2% | +18.3% |
| 5-year return | +76.1% | +84.0% |
| Volatility (ann.) | 20.6% | 15.7% |
| Beta vs S&P 500 | 1.25 | 0.89 |
| Max drawdown (3Y) | -21.0% | -18.5% |
| Dividend yield | 0.62% | 1.15% |
| Expense ratio | 0.15% | 0.08% |
| Assets under management | $25.3B | $32.9B |
| 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. XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Portfolio overlap between MTUM and XLI
The two portfolios are largely distinct, with 22 holdings in common adding up to 13.2% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in MTUM | Weight in XLI |
|---|---|---|
| CAT | 3.63% | 6.68% |
| GEV | 2.91% | 4.52% |
| PWR | 0.79% | 1.63% |
| CMI | 0.71% | 1.41% |
| VRT | 0.70% | 1.79% |
| FIX | 0.61% | 1.00% |
| CSX | 0.58% | 1.70% |
| FDX | 0.54% | 1.30% |
| HWM | 0.48% | 1.90% |
| JCI | 0.47% | 1.55% |
| WAB | 0.27% | 0.90% |
| EME | 0.20% | 0.60% |
| ROK | 0.19% | 0.85% |
| LHX | 0.19% | 0.86% |
| ODFL | 0.19% | 0.64% |
Largest positions held only by MTUM: MU (6.60%), AMD (5.09%), AVGO (4.25%), INTC (3.91%), XOM (3.78%). Only by XLI: GE (6.52%), RTX (5.04%), UNP (3.25%), BA (2.95%), ETN (2.87%).
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 | XLI |
|---|---|---|
| 2022 | -18.3% | -5.6% |
| 2023 | +9.1% | +18.1% |
| 2024 | +32.9% | +17.3% |
| 2025 | +22.1% | +19.3% |
| 2026 | +21.8% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MTUM and XLI good diversifiers for each other?
To a limited degree. At 0.75 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 XLI?
Using weekly returns as of 2026-08-27: 0.75 over 3 years, with 0.57 over the last year and 0.76 over 5 years.
Is XLI a good diversifier for MTUM?
To a limited degree. At 0.75 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 XLI overlap?
The two funds share 22 holdings amounting to 13.2% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mtum-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mtum-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MTUM correlations · XLI correlations
