NIE vs XLC: Correlation
How closely do Virtus Equity & Convertible Income Fund (NIE) and Communication Services Select Sector SPDR Fund (XLC) trade together? Their weekly returns over three years give a correlation of 0.76, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NIE and XLC?
On 3 years of weekly data the NIE/XLC correlation comes out at 0.76, strong. The past 12 months show a weaker link (0.60) than the 3-year average (0.76). The 5-year figure is 0.77, and annualized covariance runs at 181.3 %².
Within NIE's tracked universe of 21 assets, XLC comes in at #11 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months NIE outperformed by 15.3 percentage points (+16.8% for NIE against +1.5% for XLC).
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.
NIE vs XLC: side by side
| NIE (Virtus Equity & Convertible Income Fund) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +16.8% | +1.5% |
| 5-year return | +55.1% | +37.5% |
| Volatility (ann.) | 14.9% | 16.0% |
| Beta vs S&P 500 | 0.92 | 0.90 |
| Max drawdown (3Y) | -20.8% | -18.0% |
| Market cap | $0.7B | – |
| P/E (trailing) | 6.3 | – |
| Dividend yield | 0.00% | 1.32% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $21.7B |
| Sector / category | US Listed | Sector ETF |
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.
Year-by-year returns
| Year | NIE | XLC |
|---|---|---|
| 2022 | -26.7% | -37.6% |
| 2023 | +26.7% | +52.8% |
| 2024 | +28.6% | +34.7% |
| 2025 | +12.2% | +23.1% |
| 2026 | +9.1% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NIE and XLC good diversifiers for each other?
Only partially. A correlation of 0.76 means NIE and XLC share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between NIE and XLC?
The NIE/XLC correlation stands at 0.76 on a 3-year window (1 year: 0.60, 5 years: 0.77), computed from weekly returns as of 2026-08-27.
Is XLC a good diversifier for NIE?
Only partially. A correlation of 0.76 means NIE and XLC share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.76 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/nie-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/nie-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: NIE correlations · XLC correlations
