VSEC vs XLI: Correlation
VSE Corporation (VSEC) and Industrial Select Sector SPDR Fund (XLI) show a moderate relationship: their 3-year correlation of weekly returns is 0.54.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VSEC and XLI?
Over the past 3 years, VSEC and XLI moved with a correlation of 0.54, which is moderate. Little has changed lately, as the 1-year reading of 0.63 lands near the 3-year figure. Over 5 years the correlation is 0.57, and the annualized covariance of weekly returns is 379.9 %².
XLI is one of the assets that tracks VSEC most closely: it ranks #2 out of the 14 assets we track against VSEC. Correlation aside, the last 12 months split them widely, with VSEC ahead by 15.9 points (+34.2% versus +18.3%). Risk is not evenly split, since VSEC carries 2.9 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.
VSEC vs XLI: side by side
| VSEC (VSE Corporation) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +34.2% | +18.3% |
| 5-year return | +365.5% | +84.0% |
| Volatility (ann.) | 44.9% | 15.7% |
| Beta vs S&P 500 | 1.52 | 0.89 |
| Max drawdown (3Y) | -30.3% | -18.5% |
| Market cap | $6.2B | – |
| P/E (trailing) | 72.5 | – |
| Dividend yield | 0.18% | 1.15% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $32.9B |
| Sector / category | US Listed | Sector ETF |
XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Year-by-year returns
| Year | VSEC | XLI |
|---|---|---|
| 2022 | -22.4% | -5.6% |
| 2023 | +38.9% | +18.1% |
| 2024 | +47.9% | +17.3% |
| 2025 | +82.3% | +19.3% |
| 2026 | +28.1% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VSEC and XLI good diversifiers for each other?
Only partially. A correlation of 0.54 means VSEC and XLI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between VSEC and XLI?
Using weekly returns as of 2026-08-27: 0.54 over 3 years, with 0.63 over the last year and 0.57 over 5 years.
Is XLI a good diversifier for VSEC?
Only partially. A correlation of 0.54 means VSEC and XLI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.54 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vsec-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vsec-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: VSEC correlations · XLI correlations
