RSP vs XLY: Correlation & Overlap
Measured on weekly returns over the past three years, Invesco S&P 500 Equal Weight ETF (RSP) and Consumer Discretionary Select Sector SPDR Fund (XLY) carry a correlation of 0.74, a strong link. Looking through to holdings, 9.3% 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 XLY?
Over the past 3 years, RSP and XLY moved with a correlation of 0.74, which is strong. Little has changed lately, as the 1-year reading of 0.67 lands near the 3-year figure. Over 5 years the correlation is 0.80, and the annualized covariance of weekly returns is 193.0 %².
Within RSP's tracked universe of 250 assets, XLY comes in at #44 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months RSP outperformed by 19.3 percentage points (+19.2% for RSP against -0.1% for XLY). Stability stands out here, with the rolling one-year correlation confined to 0.62 through 0.84.
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 XLY: side by side
| RSP (Invesco S&P 500 Equal Weight ETF) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +19.2% | -0.1% |
| 5-year return | +53.9% | +31.8% |
| Volatility (ann.) | 13.2% | 19.7% |
| Beta vs S&P 500 | 0.77 | 1.15 |
| Max drawdown (3Y) | -17.8% | -26.0% |
| Dividend yield | 1.49% | 0.78% |
| Expense ratio | 0.20% | 0.08% |
| Assets under management | $97.3B | $22.5B |
| 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. XLY is a Consumer Cyclical fund from State Street Investment Management: $22.5B under management, 47 holdings, a 0.08% expense ratio, a 0.78% trailing dividend yield.
Portfolio overlap between RSP and XLY
The two portfolios are largely distinct, with 47 holdings in common adding up to 9.3% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in RSP | Weight in XLY |
|---|---|---|
| DASH | 0.29% | 2.24% |
| EXPE | 0.28% | 0.95% |
| ABNB | 0.27% | 1.96% |
| GPC | 0.26% | 0.48% |
| BKNG | 0.24% | 4.04% |
| GRMN | 0.23% | 1.18% |
| CMG | 0.23% | 1.19% |
| HAS | 0.22% | 0.32% |
| BBY | 0.22% | 0.43% |
| ULTA | 0.21% | 0.59% |
| WSM | 0.21% | 0.70% |
| TSCO | 0.21% | 0.46% |
| SBUX | 0.21% | 3.08% |
| CVNA | 0.20% | 1.32% |
| PHM | 0.20% | 0.62% |
Largest positions held only by RSP: MRNA (0.61%), ZBRA (0.31%), CRL (0.29%), PYPL (0.28%), VEEV (0.28%). Only by XLY: .
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 | XLY |
|---|---|---|
| 2022 | -11.6% | -36.3% |
| 2023 | +13.7% | +39.6% |
| 2024 | +12.8% | +26.5% |
| 2025 | +11.2% | +7.4% |
| 2026 | +16.5% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RSP and XLY good diversifiers for each other?
To a limited degree. At 0.74 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between RSP and XLY?
As of 2026-08-27, the correlation of weekly returns between RSP and XLY is 0.74 over 3 years, 0.67 over 1 year and 0.80 over 5 years.
Is XLY a good diversifier for RSP?
To a limited degree. At 0.74 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do RSP and XLY overlap?
The two funds share 47 holdings amounting to 9.3% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
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Related comparisons
Hubs: RSP correlations · XLY correlations
