SPYG vs XLC: Correlation & Overlap
How closely do SPDR Portfolio S&P 500 Growth ETF (SPYG) and Communication Services Select Sector SPDR Fund (XLC) trade together? Their weekly returns over three years give a correlation of 0.79, which is strong. By holdings, the two funds overlap 15.1% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPYG and XLC?
Across a 3-year window, the weekly returns of SPYG and XLC correlate at 0.79, strong. Recent behaviour matches the longer record: 0.74 over 1 year against 0.79 over 3. Stretching to 5 years gives 0.81, with an annualized covariance of 240.3 %².
By 3-year correlation, XLC places #23 of the 97 assets tracked against SPYG. Their recent paths diverged sharply: over the last 12 months SPYG outperformed by 20.9 percentage points (+22.4% for SPYG against +1.5% for XLC). Stability stands out here, with the rolling one-year correlation confined to 0.67 through 0.89.
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 XLC: side by side
| SPYG (SPDR Portfolio S&P 500 Growth ETF) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.4% | +1.5% |
| 5-year return | +85.9% | +37.5% |
| Volatility (ann.) | 18.9% | 16.0% |
| Beta vs S&P 500 | 1.25 | 0.90 |
| Max drawdown (3Y) | -22.1% | -18.0% |
| Dividend yield | 0.49% | 1.32% |
| Expense ratio | 0.04% | 0.08% |
| Assets under management | $52.2B | $21.7B |
| Sector / category | ETF · US Style | Sector ETF |
SPYG, State Street Investment Management's Large Growth fund, carries $52.2B under management, 148 holdings, a 0.04% expense ratio, a 0.49% trailing dividend yield. On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Portfolio overlap between SPYG and XLC
The two portfolios partially overlap: 15.1% of the funds' weight sits in the same underlying holdings (12 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in SPYG | Weight in XLC |
|---|---|---|
| GOOGL | 5.61% | 10.29% |
| GOOG | 4.49% | 8.22% |
| META | 3.54% | 16.73% |
| NFLX | 0.96% | 4.84% |
| APP | 0.23% | 1.30% |
| TTWO | 0.06% | 4.14% |
| LYV | 0.04% | 4.39% |
| RDDT | 0.04% | 0.32% |
| TKO | 0.03% | 2.13% |
| ECHO | 0.03% | 2.10% |
| FOXA | 0.03% | 2.50% |
| FOX | 0.02% | 1.56% |
Largest positions held only by SPYG: NVDA (14.21%), MSFT (10.32%), AAPL (6.44%), AVGO (4.71%), AMZN (3.78%). Only by XLC: T (5.20%), VZ (4.99%), CMCSA (4.93%), DIS (4.88%), WBD (4.65%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 12 common positions shown.
Year-by-year returns
| Year | SPYG | XLC |
|---|---|---|
| 2022 | -29.4% | -37.6% |
| 2023 | +30.0% | +52.8% |
| 2024 | +36.0% | +34.7% |
| 2025 | +22.1% | +23.1% |
| 2026 | +14.5% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPYG and XLC good diversifiers for each other?
Only partially. A correlation of 0.79 means SPYG and XLC share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between SPYG and XLC?
As of 2026-08-27, the correlation of weekly returns between SPYG and XLC is 0.79 over 3 years, 0.74 over 1 year and 0.81 over 5 years.
Is XLC a good diversifier for SPYG?
Only partially. A correlation of 0.79 means SPYG and XLC share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do SPYG and XLC overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 15.1% by weight over 12 common positions.
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Hubs: SPYG correlations · XLC correlations
