NTRS vs XLF: Correlation
Northern Trust (NTRS) and Financial Select Sector SPDR Fund (XLF) show a strong relationship: their 3-year correlation of weekly returns is 0.75.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NTRS and XLF?
Over the past 3 years, NTRS and XLF moved with a correlation of 0.75, which is strong. Recent behaviour matches the longer record: 0.66 over 1 year against 0.75 over 3. Over 5 years the correlation is 0.79, and the annualized covariance of weekly returns is 285.9 %².
Within NTRS's tracked universe of 33 assets, XLF comes in at #6 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months NTRS outperformed by 35.5 percentage points (+44.8% for NTRS against +9.3% for XLF). Stability stands out here, with the rolling one-year correlation confined to 0.66 through 0.82.
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.
NTRS vs XLF: side by side
| NTRS (Northern Trust) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +44.8% | +9.3% |
| 5-year return | +83.2% | +64.2% |
| Volatility (ann.) | 23.7% | 16.2% |
| Beta vs S&P 500 | 1.08 | 0.84 |
| Max drawdown (3Y) | -25.2% | -15.5% |
| Market cap | $34.1B | – |
| P/E (trailing) | 16.1 | – |
| Dividend yield | 1.71% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | Financials | Sector ETF |
XLF is a Financial fund from State Street Investment Management: $57.9B under management, 77 holdings, a 0.08% expense ratio, a 1.42% trailing dividend yield.
Year-by-year returns
| Year | NTRS | XLF |
|---|---|---|
| 2022 | -23.8% | -10.6% |
| 2023 | -1.0% | +12.0% |
| 2024 | +25.6% | +30.6% |
| 2025 | +36.9% | +14.9% |
| 2026 | +37.8% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
NTRS represents 0.42% of XLF's portfolio, so part of any move in XLF is NTRS itself, and the correlation between them is partly mechanical.
Are NTRS and XLF 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 NTRS and XLF?
As of 2026-08-27, the correlation of weekly returns between NTRS and XLF is 0.75 over 3 years, 0.66 over 1 year and 0.79 over 5 years.
Is XLF a good diversifier for NTRS?
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.
What does a correlation of 0.75 mean?
On the −1 to +1 scale, 0.75 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: NTRS correlations · XLF correlations
