TROW vs XLF: Correlation
How closely do T. Rowe Price (TROW) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.63, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TROW and XLF?
On 3 years of weekly data the TROW/XLF correlation comes out at 0.63, strong. The link has loosened recently: the 1-year correlation (0.32) runs below the 3-year figure (0.63). The 5-year figure is 0.64, and annualized covariance runs at 240.6 %².
Among the 46 assets we track against TROW, XLF ranks #20 by 3-year correlation. Neither side won the trailing year by much: +8.1% against +9.3%. Across three years, the rolling one-year figure varied moderately, from 0.34 to 0.80.
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.
TROW vs XLF: side by side
| TROW (T. Rowe Price) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +8.1% | +9.3% |
| 5-year return | -37.0% | +64.2% |
| Volatility (ann.) | 23.5% | 16.2% |
| Beta vs S&P 500 | 1.10 | 0.84 |
| Max drawdown (3Y) | -34.0% | -15.5% |
| Market cap | $24.0B | – |
| P/E (trailing) | 11.3 | – |
| Dividend yield | 4.57% | 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 | TROW | XLF |
|---|---|---|
| 2022 | -42.2% | -10.6% |
| 2023 | +3.4% | +12.0% |
| 2024 | +9.7% | +30.6% |
| 2025 | -4.7% | +14.9% |
| 2026 | +12.7% | +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 TROW at a 0.29% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are TROW and XLF good diversifiers for each other?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between TROW and XLF?
The TROW/XLF correlation stands at 0.63 on a 3-year window (1 year: 0.32, 5 years: 0.64), computed from weekly returns as of 2026-08-27.
Is XLF a good diversifier for TROW?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.63 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: TROW correlations · XLF correlations
