NNN vs XLP: Correlation
Measured on weekly returns over the past three years, NNN REIT, Inc. (NNN) and Consumer Staples Select Sector SPDR Fund (XLP) carry a correlation of 0.60, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NNN and XLP?
Across a 3-year window, the weekly returns of NNN and XLP correlate at 0.60, strong. Recent behaviour matches the longer record: 0.64 over 1 year against 0.60 over 3. Stretching to 5 years gives 0.59, with an annualized covariance of 126.4 %².
Among the 34 assets we track against NNN, XLP ranks #15 by 3-year correlation. Neither side won the trailing year by much: +13.1% against +8.3%. Risk is not evenly split, since NNN carries 1.7 times the volatility of the other side.
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.
NNN vs XLP: side by side
| NNN (NNN REIT, Inc.) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +13.1% | +8.3% |
| 5-year return | +25.1% | +34.7% |
| Volatility (ann.) | 18.8% | 11.1% |
| Beta vs S&P 500 | 0.31 | 0.23 |
| Max drawdown (3Y) | -22.0% | -9.7% |
| Market cap | $8.6B | – |
| P/E (trailing) | 22.3 | – |
| Dividend yield | 5.26% | 2.58% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $14.6B |
| Sector / category | US Listed | Sector ETF |
On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Year-by-year returns
| Year | NNN | XLP |
|---|---|---|
| 2022 | -0.0% | -0.8% |
| 2023 | -0.6% | -0.8% |
| 2024 | -0.1% | +12.2% |
| 2025 | +2.8% | +1.5% |
| 2026 | +19.2% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NNN and XLP good diversifiers for each other?
Only partially. A correlation of 0.60 means NNN and XLP 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 NNN and XLP?
The NNN/XLP correlation stands at 0.60 on a 3-year window (1 year: 0.64, 5 years: 0.59), computed from weekly returns as of 2026-08-27.
Is XLP a good diversifier for NNN?
Only partially. A correlation of 0.60 means NNN and XLP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.60 mean?
On the −1 to +1 scale, 0.60 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: NNN correlations · XLP correlations
