SWZ vs XLB: Correlation
Total Return Securities Fund (SWZ) and Materials Select Sector SPDR Fund (XLB) show a strong relationship: their 3-year correlation of weekly returns is 0.60.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SWZ and XLB?
Across a 3-year window, the weekly returns of SWZ and XLB correlate at 0.60, strong. The relationship has been stable: the 1-year correlation (0.56) sits close to the 3-year figure. Stretching to 5 years gives 0.68, with an annualized covariance of 136.7 %².
By 3-year correlation, XLB places #5 of the 14 assets tracked against SWZ. Their recent paths diverged sharply: over the last 12 months XLB outperformed by 18.8 percentage points (-1.2% for SWZ against +17.6% for XLB).
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.
SWZ vs XLB: side by side
| SWZ (Total Return Securities Fund) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -1.2% | +17.6% |
| 5-year return | +13.9% | +36.9% |
| Volatility (ann.) | 13.7% | 16.7% |
| Beta vs S&P 500 | 0.41 | 0.72 |
| Max drawdown (3Y) | -15.5% | -23.2% |
| Market cap | – | – |
| P/E (trailing) | 4.3 | – |
| Dividend yield | 2.45% | 1.68% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.3B |
| Sector / category | US Listed | Sector ETF |
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.
Year-by-year returns
| Year | SWZ | XLB |
|---|---|---|
| 2022 | -17.7% | -12.3% |
| 2023 | +15.5% | +12.5% |
| 2024 | -2.5% | +0.1% |
| 2025 | +24.1% | +9.9% |
| 2026 | -3.5% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SWZ and XLB good diversifiers for each other?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SWZ and XLB?
Using weekly returns as of 2026-08-27: 0.60 over 3 years, with 0.56 over the last year and 0.68 over 5 years.
Is XLB a good diversifier for SWZ?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.60 mean?
A reading of 0.60 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
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Related comparisons
Hubs: SWZ correlations · XLB correlations
