SLF vs XLF: Correlation
How closely do Sun Life Financial Inc. (SLF) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.50, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SLF and XLF?
On 3 years of weekly data the SLF/XLF correlation comes out at 0.50, moderate. The past 12 months show a weaker link (0.26) than the 3-year average (0.50). The 5-year figure is 0.64, and annualized covariance runs at 150.2 %².
Within SLF's tracked universe of 12 assets, XLF comes in at #5 by 3-year correlation. The last year tells two different stories: SLF led by 30.7 percentage points, +40.0% for SLF against +9.3% for XLF.
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.
SLF vs XLF: side by side
| SLF (Sun Life Financial Inc.) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +40.0% | +9.3% |
| 5-year return | +84.1% | +64.2% |
| Volatility (ann.) | 18.6% | 16.2% |
| Beta vs S&P 500 | 0.52 | 0.84 |
| Max drawdown (3Y) | -14.9% | -15.5% |
| Market cap | $43.8B | – |
| P/E (trailing) | 18.5 | – |
| Dividend yield | 4.66% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | US Listed | Sector ETF |
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.
Year-by-year returns
| Year | SLF | XLF |
|---|---|---|
| 2022 | -12.9% | -10.6% |
| 2023 | +16.9% | +12.0% |
| 2024 | +19.5% | +30.6% |
| 2025 | +7.3% | +14.9% |
| 2026 | +29.6% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SLF and XLF good diversifiers for each other?
To a limited degree. At 0.50 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 SLF and XLF?
The SLF/XLF correlation stands at 0.50 on a 3-year window (1 year: 0.26, 5 years: 0.64), computed from weekly returns as of 2026-08-27.
Is XLF a good diversifier for SLF?
To a limited degree. At 0.50 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.50 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: SLF correlations · XLF correlations
