RSP vs XLF: Correlation & Overlap
Invesco S&P 500 Equal Weight ETF (RSP) and Financial Select Sector SPDR Fund (XLF) show a very strong relationship: their 3-year correlation of weekly returns is 0.84. By holdings, the two funds overlap 15.4% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RSP and XLF?
On 3 years of weekly data the RSP/XLF correlation comes out at 0.84, very strong, meaning they move nearly in lockstep. Lately the two have drifted apart, with the 1-year correlation at 0.66 versus 0.84 over 3 years. The 5-year figure is 0.87, and annualized covariance runs at 179.3 %².
Among the 250 assets we track against RSP, XLF ranks #25 by 3-year correlation. The trailing year gives RSP the advantage: +19.2% versus +9.3%, a 9.9-point spread. The rolling one-year correlation moved between 0.66 and 0.93 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 XLF: side by side
| RSP (Invesco S&P 500 Equal Weight ETF) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +19.2% | +9.3% |
| 5-year return | +53.9% | +64.2% |
| Volatility (ann.) | 13.2% | 16.2% |
| Beta vs S&P 500 | 0.77 | 0.84 |
| Max drawdown (3Y) | -17.8% | -15.5% |
| Dividend yield | 1.49% | 1.42% |
| Expense ratio | 0.20% | 0.08% |
| Assets under management | $97.3B | $57.9B |
| 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. 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.
Portfolio overlap between RSP and XLF
The two portfolios partially overlap, with 76 holdings in common adding up to 15.4% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in RSP | Weight in XLF |
|---|---|---|
| PYPL | 0.28% | 0.66% |
| GPN | 0.28% | 0.26% |
| WTW | 0.24% | 0.39% |
| HOOD | 0.23% | 1.04% |
| XYZ | 0.23% | 0.54% |
| AMP | 0.23% | 0.61% |
| SCHW | 0.23% | 2.17% |
| COF | 0.23% | 1.64% |
| MA | 0.23% | 5.87% |
| TRV | 0.23% | 0.96% |
| BRO | 0.23% | 0.26% |
| BX | 0.22% | 1.29% |
| AJG | 0.22% | 0.83% |
| STT | 0.22% | 0.65% |
| V | 0.22% | 7.74% |
Largest positions held only by RSP: MRNA (0.61%), ZBRA (0.31%), CRL (0.29%), DASH (0.29%), EXPE (0.28%). Only by XLF: IXAU6 (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 | XLF |
|---|---|---|
| 2022 | -11.6% | -10.6% |
| 2023 | +13.7% | +12.0% |
| 2024 | +12.8% | +30.6% |
| 2025 | +11.2% | +14.9% |
| 2026 | +16.5% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RSP and XLF good diversifiers for each other?
Not really. At 0.84, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between RSP and XLF?
As of 2026-08-27, the correlation of weekly returns between RSP and XLF is 0.84 over 3 years, 0.66 over 1 year and 0.87 over 5 years.
Is XLF a good diversifier for RSP?
Not really. At 0.84, the two trade almost as one position, and owning both buys little extra protection.
How much do RSP and XLF overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 15.4% by weight over 76 common positions.
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Hubs: RSP correlations · XLF correlations
