RSP vs XLC: Correlation & Overlap
Measured on weekly returns over the past three years, Invesco S&P 500 Equal Weight ETF (RSP) and Communication Services Select Sector SPDR Fund (XLC) carry a correlation of 0.66, a strong link. Looking through to holdings, 3.9% 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 XLC?
Across a 3-year window, the weekly returns of RSP and XLC correlate at 0.66, strong. The link has loosened recently: the 1-year correlation (0.50) runs below the 3-year figure (0.66). Stretching to 5 years gives 0.72, with an annualized covariance of 138.4 %².
Within RSP's tracked universe of 250 assets, XLC comes in at #85 by 3-year correlation. The last year tells two different stories: RSP led by 17.7 percentage points, +19.2% for RSP against +1.5% for XLC. The rolling one-year correlation moved between 0.36 and 0.85 over the past three years, a moderate range.
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 XLC: side by side
| RSP (Invesco S&P 500 Equal Weight ETF) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +19.2% | +1.5% |
| 5-year return | +53.9% | +37.5% |
| Volatility (ann.) | 13.2% | 16.0% |
| Beta vs S&P 500 | 0.77 | 0.90 |
| Max drawdown (3Y) | -17.8% | -18.0% |
| Dividend yield | 1.49% | 1.32% |
| Expense ratio | 0.20% | 0.08% |
| Assets under management | $97.3B | $21.7B |
| Sector / category | ETF · US Large Cap | Sector ETF |
RSP, Invesco's Large Blend fund, carries $97.3B under management, 505 holdings, a 0.20% expense ratio, a 1.49% trailing dividend yield. 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.
Portfolio overlap between RSP and XLC
The two portfolios are largely distinct, with 24 holdings in common adding up to 3.9% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in RSP | Weight in XLC |
|---|---|---|
| OMC | 0.22% | 4.52% |
| CMCSA | 0.21% | 4.93% |
| CHTR | 0.21% | 3.18% |
| T | 0.21% | 5.20% |
| DIS | 0.21% | 4.88% |
| TTWO | 0.21% | 4.14% |
| WBD | 0.20% | 4.65% |
| LYV | 0.20% | 4.39% |
| VZ | 0.20% | 4.99% |
| PSKY | 0.19% | 0.61% |
| META | 0.19% | 16.73% |
| NFLX | 0.19% | 4.84% |
| TMUS | 0.18% | 4.53% |
| TKO | 0.17% | 2.13% |
| RDDT | 0.17% | 0.32% |
Largest positions held only by RSP: MRNA (0.61%), ZBRA (0.31%), CRL (0.29%), DASH (0.29%), EXPE (0.28%). Only by XLC: .
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 | XLC |
|---|---|---|
| 2022 | -11.6% | -37.6% |
| 2023 | +13.7% | +52.8% |
| 2024 | +12.8% | +34.7% |
| 2025 | +11.2% | +23.1% |
| 2026 | +16.5% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RSP and XLC good diversifiers for each other?
Only partially. A correlation of 0.66 means RSP 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 RSP and XLC?
Using weekly returns as of 2026-08-27: 0.66 over 3 years, with 0.50 over the last year and 0.72 over 5 years.
Is XLC a good diversifier for RSP?
Only partially. A correlation of 0.66 means RSP and XLC share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do RSP and XLC overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 3.9% by weight over 24 common positions.
Use this data
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[](https://www.pairbook.io/pair/rsp-vs-xlc/)
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Related comparisons
Hubs: RSP correlations · XLC correlations
