QUAL vs XYL: Correlation
Measured on weekly returns over the past three years, iShares MSCI USA Quality Factor ETF (QUAL) and Xylem Inc. (XYL) carry a correlation of 0.61, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QUAL and XYL?
Across a 3-year window, the weekly returns of QUAL and XYL correlate at 0.61, strong. Lately the two have drifted apart, with the 1-year correlation at 0.39 versus 0.61 over 3 years. Stretching to 5 years gives 0.63, with an annualized covariance of 205.1 %².
Within QUAL's tracked universe of 106 assets, XYL comes in at #48 by 3-year correlation. The last year tells two different stories: QUAL led by 40.8 percentage points, +19.7% for QUAL against -21.1% for XYL. The relationship is regime-dependent: the rolling one-year correlation swung between 0.24 and 0.79 over the past three years, so this pair behaves very differently depending on the market environment. Risk is not evenly split, since XYL 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.
QUAL vs XYL: side by side
| QUAL (iShares MSCI USA Quality Factor ETF) | XYL (Xylem Inc.) | |
|---|---|---|
| 1-year return | +19.7% | -21.1% |
| 5-year return | +68.0% | -12.5% |
| Volatility (ann.) | 14.0% | 23.9% |
| Beta vs S&P 500 | 0.93 | 0.96 |
| Max drawdown (3Y) | -18.0% | -30.0% |
| Market cap | – | $26.3B |
| P/E (trailing) | – | 26.8 |
| Dividend yield | 0.86% | 1.47% |
| Expense ratio | 0.15% | – |
| Assets under management | $46.5B | – |
| Sector / category | ETF · US Style | Industrials |
QUAL is a Large Blend fund from iShares: $46.5B under management, 123 holdings, a 0.15% expense ratio, a 0.86% trailing dividend yield.
Year-by-year returns
| Year | QUAL | XYL |
|---|---|---|
| 2022 | -20.5% | -6.6% |
| 2023 | +30.9% | +4.8% |
| 2024 | +22.3% | +2.6% |
| 2025 | +12.7% | +18.8% |
| 2026 | +13.5% | -16.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QUAL and XYL good diversifiers for each other?
To a limited degree. At 0.61 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 QUAL and XYL?
Using weekly returns as of 2026-08-27: 0.61 over 3 years, with 0.39 over the last year and 0.63 over 5 years.
Is XYL a good diversifier for QUAL?
To a limited degree. At 0.61 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 0.61 mean?
A reading of 0.61 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qual-vs-xyl.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/qual-vs-xyl/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: QUAL correlations · XYL correlations
