SPYG vs XLB: Correlation & Overlap
How closely do SPDR Portfolio S&P 500 Growth ETF (SPYG) and Materials Select Sector SPDR Fund (XLB) trade together? Their weekly returns over three years give a correlation of 0.45, which is moderate. Looking through to holdings, 0.4% 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 SPYG and XLB?
Across a 3-year window, the weekly returns of SPYG and XLB correlate at 0.45, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.17 versus 0.45 over 3 years. Stretching to 5 years gives 0.61, with an annualized covariance of 141.3 %².
Within SPYG's tracked universe of 97 assets, XLB comes in at #78 by 3-year correlation. Twelve-month performance is nearly a tie, at +22.4% for SPYG and +17.6% for XLB. The relationship is regime-dependent: the rolling one-year correlation swung between 0.18 and 0.79 over the past three years, so this pair behaves very differently depending on the market environment.
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.
SPYG vs XLB: side by side
| SPYG (SPDR Portfolio S&P 500 Growth ETF) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.4% | +17.6% |
| 5-year return | +85.9% | +36.9% |
| Volatility (ann.) | 18.9% | 16.7% |
| Beta vs S&P 500 | 1.25 | 0.72 |
| Max drawdown (3Y) | -22.1% | -23.2% |
| Dividend yield | 0.49% | 1.68% |
| Expense ratio | 0.04% | 0.08% |
| Assets under management | $52.2B | $8.3B |
| Sector / category | ETF · US Style | Sector ETF |
On the fund side, SPYG sits in the Large Growth category at State Street Investment Management, with $52.2B under management, 148 holdings, a 0.04% expense ratio, a 0.49% trailing dividend yield. XLB is a Natural Resources fund from State Street Investment Management: $8.3B under management, 26 holdings, a 0.08% expense ratio, a 1.68% trailing dividend yield.
Portfolio overlap between SPYG and XLB
The two portfolios are largely distinct, with 1 holdings in common adding up to 0.4% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in SPYG | Weight in XLB |
|---|---|---|
| NEM | 0.39% | 8.02% |
Largest positions held only by SPYG: NVDA (14.21%), MSFT (10.32%), AAPL (6.44%), GOOGL (5.61%), AVGO (4.71%). Only by XLB: LIN (12.94%), FCX (6.48%), SHW (4.87%), ECL (4.80%), CTVA (4.72%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 1 common positions shown.
Year-by-year returns
| Year | SPYG | XLB |
|---|---|---|
| 2022 | -29.4% | -12.3% |
| 2023 | +30.0% | +12.5% |
| 2024 | +36.0% | +0.1% |
| 2025 | +22.1% | +9.9% |
| 2026 | +14.5% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPYG and XLB good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.45 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between SPYG and XLB?
As of 2026-08-27, the correlation of weekly returns between SPYG and XLB is 0.45 over 3 years, 0.17 over 1 year and 0.61 over 5 years.
Is XLB a good diversifier for SPYG?
Yes, to a useful degree: a correlation of 0.45 leaves real independence between the two, which historically damped combined volatility.
How much do SPYG and XLB overlap?
0.4% by weight, across 1 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/spyg-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/spyg-vs-xlb/)
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Related comparisons
Hubs: SPYG correlations · XLB correlations
