SPY vs XLI: Correlation & Overlap
Measured on weekly returns over the past three years, SPDR S&P 500 ETF Trust (SPY) and Industrial Select Sector SPDR Fund (XLI) carry a correlation of 0.82, a very strong link. Looking through to holdings, 8.6% 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 SPY and XLI?
Across a 3-year window, the weekly returns of SPY and XLI correlate at 0.82, very strong, meaning they move nearly in lockstep. Lately the two have drifted apart, with the 1-year correlation at 0.60 versus 0.82 over 3 years. Stretching to 5 years gives 0.86, with an annualized covariance of 186.2 %².
Among the 4755 assets we track against SPY, XLI ranks #48 by 3-year correlation. Their 12-month results are close: +20.6% for SPY against +18.3% for XLI. Across three years, the rolling one-year figure varied moderately, from 0.59 to 0.93.
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.
SPY vs XLI: side by side
| SPY (SPDR S&P 500 ETF Trust) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.6% | +18.3% |
| 5-year return | +82.4% | +84.0% |
| Volatility (ann.) | 14.5% | 15.7% |
| Beta vs S&P 500 | 1.00 | 0.89 |
| Max drawdown (3Y) | -18.8% | -18.5% |
| Dividend yield | 1.01% | 1.15% |
| Expense ratio | 0.09% | 0.08% |
| Assets under management | $795.3B | $32.9B |
| Sector / category | ETF · US Large Cap | Sector ETF |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield. XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Portfolio overlap between SPY and XLI
The two portfolios are largely distinct, with 83 holdings in common adding up to 8.6% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in SPY | Weight in XLI |
|---|---|---|
| CAT | 0.57% | 6.68% |
| GE | 0.56% | 6.52% |
| RTX | 0.43% | 5.04% |
| GEV | 0.39% | 4.52% |
| UNP | 0.28% | 3.25% |
| BA | 0.25% | 2.95% |
| ETN | 0.25% | 2.87% |
| UBER | 0.24% | 2.82% |
| DE | 0.24% | 2.81% |
| PH | 0.20% | 2.31% |
| LMT | 0.17% | 2.02% |
| ADP | 0.17% | 1.98% |
| HWM | 0.16% | 1.90% |
| TT | 0.15% | 1.81% |
| VRT | 0.15% | 1.79% |
Largest positions held only by SPY: NVDA (7.68%), AAPL (6.96%), MSFT (5.58%), AMZN (3.85%), GOOGL (3.03%). Only by XLI: .
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 | SPY | XLI |
|---|---|---|
| 2022 | -18.2% | -5.6% |
| 2023 | +26.2% | +18.1% |
| 2024 | +24.9% | +17.3% |
| 2025 | +17.7% | +19.3% |
| 2026 | +13.7% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and XLI good diversifiers for each other?
No: a correlation of 0.82 means SPY and XLI tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between SPY and XLI?
As of 2026-08-27, the correlation of weekly returns between SPY and XLI is 0.82 over 3 years, 0.60 over 1 year and 0.86 over 5 years.
Is XLI a good diversifier for SPY?
No: a correlation of 0.82 means SPY and XLI tend to fall together, which is precisely when diversification is supposed to help.
How much do SPY and XLI overlap?
The two funds share 83 holdings amounting to 8.6% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/spy-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/spy-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: SPY correlations · XLI correlations
