TFC vs XLF: Correlation
Truist Financial (TFC) and Financial Select Sector SPDR Fund (XLF) show a strong relationship: their 3-year correlation of weekly returns is 0.77.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TFC and XLF?
Across a 3-year window, the weekly returns of TFC and XLF correlate at 0.77, strong. Little has changed lately, as the 1-year reading of 0.67 lands near the 3-year figure. Stretching to 5 years gives 0.78, with an annualized covariance of 351.0 %².
Within TFC's tracked universe of 39 assets, XLF comes in at #18 by 3-year correlation. Their 12-month results are close: +12.1% for TFC against +9.3% for XLF. The rolling one-year correlation moved between 0.64 and 0.90 over the past three years, a moderate range. Risk is not evenly split, since TFC carries 1.7 times the volatility of the other side.
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.
TFC vs XLF: side by side
| TFC (Truist Financial) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +12.1% | +9.3% |
| 5-year return | +12.7% | +64.2% |
| Volatility (ann.) | 28.0% | 16.2% |
| Beta vs S&P 500 | 1.07 | 0.84 |
| Max drawdown (3Y) | -26.9% | -15.5% |
| Market cap | $61.4B | – |
| P/E (trailing) | 11.6 | – |
| Dividend yield | 4.10% | 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 | TFC | XLF |
|---|---|---|
| 2022 | -23.5% | -10.6% |
| 2023 | -8.6% | +12.0% |
| 2024 | +23.7% | +30.6% |
| 2025 | +19.0% | +14.9% |
| 2026 | +5.4% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLF holds TFC at a 0.77% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are TFC and XLF good diversifiers for each other?
To a limited degree. At 0.77 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between TFC and XLF?
Using weekly returns as of 2026-08-27: 0.77 over 3 years, with 0.67 over the last year and 0.78 over 5 years.
Is XLF a good diversifier for TFC?
To a limited degree. At 0.77 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.77 mean?
On the −1 to +1 scale, 0.77 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: TFC correlations · XLF correlations
