RSP vs XLE: Correlation & Overlap
Invesco S&P 500 Equal Weight ETF (RSP) and Energy Select Sector SPDR Fund (XLE) show a moderate relationship: their 3-year correlation of weekly returns is 0.35. By holdings, the two funds overlap 4.2% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RSP and XLE?
On 3 years of weekly data the RSP/XLE correlation comes out at 0.35, moderate. Lately the two have drifted apart, with the 1-year correlation at -0.18 versus 0.35 over 3 years. The 5-year figure is 0.42, and annualized covariance runs at 106.9 %².
Within RSP's tracked universe of 250 assets, XLE comes in at #240 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLE ahead by 24.8 points (+19.2% versus +44.0%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.20 to 0.68. Note the risk asymmetry: XLE runs 1.8 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 XLE: side by side
| RSP (Invesco S&P 500 Equal Weight ETF) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +19.2% | +44.0% |
| 5-year return | +53.9% | +206.7% |
| Volatility (ann.) | 13.2% | 23.1% |
| Beta vs S&P 500 | 0.77 | 0.27 |
| Max drawdown (3Y) | -17.8% | -20.1% |
| Dividend yield | 1.49% | 2.55% |
| Expense ratio | 0.20% | 0.08% |
| Assets under management | $97.3B | $39.2B |
| Sector / category | ETF · US Large Cap | Sector ETF |
RSP is a Large Blend fund from Invesco: $97.3B under management, 505 holdings, a 0.20% expense ratio, a 1.49% trailing dividend yield. XLE is an Equity Energy fund from State Street Investment Management: $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% trailing dividend yield.
Portfolio overlap between RSP and XLE
The two portfolios are largely distinct: 4.2% of the funds' weight sits in the same underlying holdings (21 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in RSP | Weight in XLE |
|---|---|---|
| MPC | 0.26% | 5.40% |
| VLO | 0.25% | 5.05% |
| PSX | 0.25% | 5.37% |
| EXE | 0.20% | 1.37% |
| COP | 0.20% | 6.30% |
| APA | 0.20% | 0.86% |
| TRGP | 0.20% | 3.74% |
| CVX | 0.20% | 14.84% |
| XOM | 0.20% | 20.03% |
| OKE | 0.20% | 3.55% |
| EQT | 0.19% | 2.03% |
| EOG | 0.19% | 4.24% |
| WMB | 0.19% | 3.84% |
| OXY | 0.19% | 2.52% |
| FANG | 0.19% | 2.30% |
Largest positions held only by RSP: MRNA (0.61%), ZBRA (0.31%), CRL (0.29%), DASH (0.29%), EXPE (0.28%). Only by XLE: IXPU6 (0.01%).
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 | XLE |
|---|---|---|
| 2022 | -11.6% | +64.3% |
| 2023 | +13.7% | -0.6% |
| 2024 | +12.8% | +5.6% |
| 2025 | +11.2% | +7.9% |
| 2026 | +16.5% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RSP and XLE good diversifiers for each other?
Reasonably. At 0.35, RSP and XLE keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between RSP and XLE?
As of 2026-08-27, the correlation of weekly returns between RSP and XLE is 0.35 over 3 years, -0.18 over 1 year and 0.42 over 5 years.
Is XLE a good diversifier for RSP?
Reasonably. At 0.35, RSP and XLE keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do RSP and XLE overlap?
The two funds share 21 holdings amounting to 4.2% of weight, per issuer portfolio files dated 2026-08-26.
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Hubs: RSP correlations · XLE correlations
