RSP vs XLB: Correlation & Overlap
How closely do Invesco S&P 500 Equal Weight ETF (RSP) and Materials Select Sector SPDR Fund (XLB) trade together? Their weekly returns over three years give a correlation of 0.83, which is very strong. Looking through to holdings, 5.1% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RSP and XLB?
Over the past 3 years, RSP and XLB moved with a correlation of 0.83, which is very strong, meaning they move nearly in lockstep. The past 12 months show a weaker link (0.68) than the 3-year average (0.83). Over 5 years the correlation is 0.87, and the annualized covariance of weekly returns is 183.6 %².
Among the 250 assets we track against RSP, XLB ranks #26 by 3-year correlation. Twelve-month performance is nearly a tie, at +19.2% for RSP and +17.6% for XLB. The rolling one-year correlation stayed in a tight band between 0.71 and 0.93 over the past three years, which points to a structural rather than episodic relationship.
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.
RSP vs XLB: side by side
| RSP (Invesco S&P 500 Equal Weight ETF) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +19.2% | +17.6% |
| 5-year return | +53.9% | +36.9% |
| Volatility (ann.) | 13.2% | 16.7% |
| Beta vs S&P 500 | 0.77 | 0.72 |
| Max drawdown (3Y) | -17.8% | -23.2% |
| Dividend yield | 1.49% | 1.68% |
| Expense ratio | 0.20% | 0.08% |
| Assets under management | $97.3B | $8.3B |
| Sector / category | ETF · US Large Cap | Sector ETF |
On the fund side, RSP sits in the Large Blend category at Invesco, with $97.3B under management, 505 holdings, a 0.20% expense ratio, a 1.49% trailing dividend yield. XLB is a Natural Resources fund from State Street Investment Management: $8.3B under management, 26 holdings, a 0.08% expense ratio, a 1.68% trailing dividend yield.
Portfolio overlap between RSP and XLB
The two portfolios are largely distinct. Weighing the shared positions, 5.1% of the two funds is identical, spread across 25 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in RSP | Weight in XLB |
|---|---|---|
| NEM | 0.26% | 8.02% |
| IP | 0.24% | 2.86% |
| SW | 0.24% | 3.39% |
| FCX | 0.24% | 6.48% |
| AMCR | 0.23% | 2.84% |
| MOS | 0.23% | 1.00% |
| IFF | 0.22% | 2.90% |
| BALL | 0.22% | 2.22% |
| AVY | 0.22% | 1.82% |
| CF | 0.22% | 2.52% |
| SHW | 0.21% | 4.87% |
| PKG | 0.21% | 2.85% |
| ECL | 0.21% | 4.80% |
| CTVA | 0.21% | 4.72% |
| APD | 0.21% | 4.71% |
Largest positions held only by RSP: MRNA (0.61%), ZBRA (0.31%), CRL (0.29%), DASH (0.29%), EXPE (0.28%). Only by XLB: IXDU6 (0.00%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | RSP | XLB |
|---|---|---|
| 2022 | -11.6% | -12.3% |
| 2023 | +13.7% | +12.5% |
| 2024 | +12.8% | +0.1% |
| 2025 | +11.2% | +9.9% |
| 2026 | +16.5% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RSP and XLB good diversifiers for each other?
No: a correlation of 0.83 means RSP and XLB tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between RSP and XLB?
As of 2026-08-27, the correlation of weekly returns between RSP and XLB is 0.83 over 3 years, 0.68 over 1 year and 0.87 over 5 years.
Is XLB a good diversifier for RSP?
No: a correlation of 0.83 means RSP and XLB tend to fall together, which is precisely when diversification is supposed to help.
How much do RSP and XLB overlap?
The two funds share 25 holdings amounting to 5.1% of weight, per issuer portfolio files dated 2026-08-26.
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Related comparisons
Hubs: RSP correlations · XLB correlations
