SYF vs XLF: Correlation
How closely do Synchrony Financial (SYF) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.76, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SYF and XLF?
Across a 3-year window, the weekly returns of SYF and XLF correlate at 0.76, strong. Little has changed lately, as the 1-year reading of 0.68 lands near the 3-year figure. Stretching to 5 years gives 0.75, with an annualized covariance of 387.4 %².
By 3-year correlation, XLF places #10 of the 43 assets tracked against SYF. Twelve-month performance is nearly a tie, at +7.3% for SYF and +9.3% for XLF. The rolling one-year correlation moved between 0.57 and 0.87 over the past three years, a moderate range. Note the risk asymmetry: SYF runs 2.0 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
SYF vs XLF: side by side
| SYF (Synchrony Financial) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +7.3% | +9.3% |
| 5-year return | +81.0% | +64.2% |
| Volatility (ann.) | 31.6% | 16.2% |
| Beta vs S&P 500 | 1.28 | 0.84 |
| Max drawdown (3Y) | -37.7% | -15.5% |
| Market cap | $26.0B | – |
| P/E (trailing) | 8.2 | – |
| Dividend yield | 1.50% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | Financials | Sector ETF |
XLF is a Financial fund from State Street Investment Management: $57.9B under management, 77 holdings, a 0.08% expense ratio, a 1.42% trailing dividend yield.
Year-by-year returns
| Year | SYF | XLF |
|---|---|---|
| 2022 | -27.4% | -10.6% |
| 2023 | +19.8% | +12.0% |
| 2024 | +74.0% | +30.6% |
| 2025 | +30.6% | +14.9% |
| 2026 | -3.0% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
SYF represents 0.33% of XLF's portfolio, so part of any move in XLF is SYF itself, and the correlation between them is partly mechanical.
Are SYF and XLF good diversifiers for each other?
Somewhat, no more. With 0.76 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SYF and XLF?
Using weekly returns as of 2026-08-27: 0.76 over 3 years, with 0.68 over the last year and 0.75 over 5 years.
Is XLF a good diversifier for SYF?
Somewhat, no more. With 0.76 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.76 mean?
On the −1 to +1 scale, 0.76 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: SYF correlations · XLF correlations
