V vs XLF: Correlation
How closely do Visa Inc. (V) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.70, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are V and XLF?
Across a 3-year window, the weekly returns of V and XLF correlate at 0.70, strong. The relationship has been stable: the 1-year correlation (0.69) sits close to the 3-year figure. Stretching to 5 years gives 0.67, with an annualized covariance of 216.3 %².
In V's tracked universe of 32 assets, XLF sits right near the top at #2. Twelve-month performance is nearly a tie, at +9.2% for V and +9.3% for XLF. This link changes with the market regime, having swung between 0.33 and 0.86 on a rolling one-year basis.
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.
V vs XLF: side by side
| V (Visa Inc.) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +9.2% | +9.3% |
| 5-year return | +70.5% | +64.2% |
| Volatility (ann.) | 19.1% | 16.2% |
| Beta vs S&P 500 | 0.72 | 0.84 |
| Max drawdown (3Y) | -20.4% | -15.5% |
| Market cap | $708.8B | – |
| P/E (trailing) | 32.7 | – |
| Dividend yield | 0.70% | 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 | V | XLF |
|---|---|---|
| 2022 | -3.4% | -10.6% |
| 2023 | +26.3% | +12.0% |
| 2024 | +22.3% | +30.6% |
| 2025 | +11.8% | +14.9% |
| 2026 | +8.9% | +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 V at a 7.74% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are V and XLF good diversifiers for each other?
Somewhat, no more. With 0.70 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between V and XLF?
Using weekly returns as of 2026-08-27: 0.70 over 3 years, with 0.69 over the last year and 0.67 over 5 years.
Is XLF a good diversifier for V?
Somewhat, no more. With 0.70 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.70 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: V correlations · XLF correlations
