MTUM vs XLU: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI USA Momentum Factor ETF (MTUM) and Utilities Select Sector SPDR Fund (XLU) carry a correlation of 0.21, a weak link. By holdings, the two funds overlap 0.6% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MTUM and XLU?
On 3 years of weekly data the MTUM/XLU correlation comes out at 0.21, weak. The past 12 months show a weaker link (0.07) than the 3-year average (0.21). The 5-year figure is 0.37, and annualized covariance runs at 69.4 %².
Within MTUM's tracked universe of 109 assets, XLU comes in at #97 by 3-year correlation. The last year tells two different stories: MTUM led by 21.1 percentage points, +25.2% for MTUM against +4.1% for XLU. This link changes with the market regime, having swung between -0.07 and 0.64 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 XLU: side by side
| MTUM (iShares MSCI USA Momentum Factor ETF) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.2% | +4.1% |
| 5-year return | +76.1% | +46.3% |
| Volatility (ann.) | 20.6% | 15.8% |
| Beta vs S&P 500 | 1.25 | 0.26 |
| Max drawdown (3Y) | -21.0% | -13.1% |
| Dividend yield | 0.62% | 2.70% |
| Expense ratio | 0.15% | 0.08% |
| Assets under management | $25.3B | $23.1B |
| 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. XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Portfolio overlap between MTUM and XLU
The two portfolios are largely distinct: 0.6% of the funds' weight sits in the same underlying holdings (3 common positions). Correlation tells you they move together; overlap tells you why.
Largest positions held only by MTUM: MU (6.60%), AMD (5.09%), AVGO (4.25%), INTC (3.91%), XOM (3.78%). Only by XLU: NEE (12.94%), SO (7.45%), DUK (7.00%), CEG (6.58%), D (4.33%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 3 common positions shown.
Year-by-year returns
| Year | MTUM | XLU |
|---|---|---|
| 2022 | -18.3% | +1.4% |
| 2023 | +9.1% | -7.2% |
| 2024 | +32.9% | +23.3% |
| 2025 | +22.1% | +16.0% |
| 2026 | +21.8% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MTUM and XLU good diversifiers for each other?
Reasonably. At 0.21, MTUM and XLU keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between MTUM and XLU?
As of 2026-08-27, the correlation of weekly returns between MTUM and XLU is 0.21 over 3 years, 0.07 over 1 year and 0.37 over 5 years.
Is XLU a good diversifier for MTUM?
Reasonably. At 0.21, MTUM and XLU keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do MTUM and XLU overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0.6% by weight over 3 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mtum-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mtum-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MTUM correlations · XLU correlations
