SPY vs XLP: Correlation & Overlap
Measured on weekly returns over the past three years, SPDR S&P 500 ETF Trust (SPY) and Consumer Staples Select Sector SPDR Fund (XLP) carry a correlation of 0.30, a moderate link. Looking through to holdings, 4.6% 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 XLP?
Over the past 3 years, SPY and XLP moved with a correlation of 0.30, which is moderate. The past 12 months show a weaker link (0.01) than the 3-year average (0.30). Over 5 years the correlation is 0.53, and the annualized covariance of weekly returns is 48.8 %².
By 3-year correlation, XLP places #2260 of the 4755 assets tracked against SPY. Over the last 12 months SPY came out ahead by 12.3 percentage points (+20.6% against +8.3%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.02 to 0.68.
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 XLP: side by side
| SPY (SPDR S&P 500 ETF Trust) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.6% | +8.3% |
| 5-year return | +82.4% | +34.7% |
| Volatility (ann.) | 14.5% | 11.1% |
| Beta vs S&P 500 | 1.00 | 0.23 |
| Max drawdown (3Y) | -18.8% | -9.7% |
| Dividend yield | 1.01% | 2.58% |
| Expense ratio | 0.09% | 0.08% |
| Assets under management | $795.3B | $14.6B |
| Sector / category | ETF · US Large Cap | Sector ETF |
On the fund side, SPY sits in the Large Blend category at State Street Investment Management, with $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield. On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Portfolio overlap between SPY and XLP
The two portfolios are largely distinct: 4.6% of the funds' weight sits in the same underlying holdings (34 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in SPY | Weight in XLP |
|---|---|---|
| WMT | 0.69% | 9.62% |
| COST | 0.64% | 8.92% |
| KO | 0.53% | 7.34% |
| PG | 0.51% | 7.10% |
| PM | 0.46% | 6.36% |
| PEP | 0.29% | 4.39% |
| MO | 0.17% | 4.21% |
| MDLZ | 0.12% | 4.37% |
| TGT | 0.11% | 4.67% |
| CL | 0.11% | 4.56% |
| MNST | 0.10% | 4.28% |
| KDP | 0.07% | 2.75% |
| SYY | 0.06% | 2.50% |
| ADM | 0.06% | 2.42% |
| KVUE | 0.06% | 2.32% |
Largest positions held only by SPY: NVDA (7.68%), AAPL (6.96%), MSFT (5.58%), AMZN (3.85%), GOOGL (3.03%). Only by XLP: IXRU6 (0.00%).
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 | XLP |
|---|---|---|
| 2022 | -18.2% | -0.8% |
| 2023 | +26.2% | -0.8% |
| 2024 | +24.9% | +12.2% |
| 2025 | +17.7% | +1.5% |
| 2026 | +13.7% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and XLP good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.30 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between SPY and XLP?
As of 2026-08-27, the correlation of weekly returns between SPY and XLP is 0.30 over 3 years, 0.01 over 1 year and 0.53 over 5 years.
Is XLP a good diversifier for SPY?
Yes, to a useful degree: a correlation of 0.30 leaves real independence between the two, which historically damped combined volatility.
How much do SPY and XLP overlap?
The two funds share 34 holdings amounting to 4.6% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/spy-vs-xlp.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/spy-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SPY correlations · XLP correlations
