RSP vs XLU: Correlation & Overlap
Invesco S&P 500 Equal Weight ETF (RSP) and Utilities Select Sector SPDR Fund (XLU) show a moderate relationship: their 3-year correlation of weekly returns is 0.43. By holdings, the two funds overlap 5.7% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RSP and XLU?
Over the past 3 years, RSP and XLU moved with a correlation of 0.43, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.18 versus 0.43 over 3 years. Over 5 years the correlation is 0.53, and the annualized covariance of weekly returns is 90.0 %².
Among the 250 assets we track against RSP, XLU ranks #232 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months RSP outperformed by 15.1 percentage points (+19.2% for RSP against +4.1% for XLU). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.16 to 0.66.
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 XLU: side by side
| RSP (Invesco S&P 500 Equal Weight ETF) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +19.2% | +4.1% |
| 5-year return | +53.9% | +46.3% |
| Volatility (ann.) | 13.2% | 15.8% |
| Beta vs S&P 500 | 0.77 | 0.26 |
| Max drawdown (3Y) | -17.8% | -13.1% |
| Dividend yield | 1.49% | 2.70% |
| Expense ratio | 0.20% | 0.08% |
| Assets under management | $97.3B | $23.1B |
| 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. XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Portfolio overlap between RSP and XLU
The two portfolios are largely distinct. Weighing the shared positions, 5.7% of the two funds is identical, spread across 31 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in RSP | Weight in XLU |
|---|---|---|
| CEG | 0.22% | 6.58% |
| AWK | 0.20% | 1.98% |
| PCG | 0.20% | 2.96% |
| EIX | 0.19% | 2.11% |
| ES | 0.19% | 1.99% |
| FE | 0.19% | 1.79% |
| VST | 0.19% | 3.27% |
| ED | 0.19% | 2.93% |
| AES | 0.19% | 0.77% |
| ATO | 0.19% | 2.08% |
| EVRG | 0.19% | 1.40% |
| D | 0.19% | 4.33% |
| XEL | 0.19% | 3.57% |
| AEE | 0.18% | 2.20% |
| NEE | 0.18% | 12.94% |
Largest positions held only by RSP: MRNA (0.61%), ZBRA (0.31%), CRL (0.29%), DASH (0.29%), EXPE (0.28%). Only by XLU: .
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 | XLU |
|---|---|---|
| 2022 | -11.6% | +1.4% |
| 2023 | +13.7% | -7.2% |
| 2024 | +12.8% | +23.3% |
| 2025 | +11.2% | +16.0% |
| 2026 | +16.5% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RSP and XLU good diversifiers for each other?
Reasonably. At 0.43, RSP and XLU keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between RSP and XLU?
Using weekly returns as of 2026-08-27: 0.43 over 3 years, with 0.18 over the last year and 0.53 over 5 years.
Is XLU a good diversifier for RSP?
Reasonably. At 0.43, RSP and XLU keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do RSP and XLU overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 5.7% by weight over 31 common positions.
Use this data
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[](https://www.pairbook.io/pair/rsp-vs-xlu/)
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Related comparisons
Hubs: RSP correlations · XLU correlations
