WEC vs XLU: Correlation
Measured on weekly returns over the past three years, WEC Energy Group (WEC) and Utilities Select Sector SPDR Fund (XLU) carry a correlation of 0.80, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are WEC and XLU?
Across a 3-year window, the weekly returns of WEC and XLU correlate at 0.80, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.89 lands near the 3-year figure. Stretching to 5 years gives 0.86, with an annualized covariance of 214.2 %².
By 3-year correlation, XLU places #9 of the 44 assets tracked against WEC. Twelve-month performance is nearly a tie, at +2.1% for WEC and +4.1% for XLU. On a rolling one-year basis the correlation drifted between 0.66 and 0.92, a moderate band.
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.
WEC vs XLU: side by side
| WEC (WEC Energy Group) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +2.1% | +4.1% |
| 5-year return | +32.7% | +46.3% |
| Volatility (ann.) | 16.9% | 15.8% |
| Beta vs S&P 500 | 0.02 | 0.26 |
| Max drawdown (3Y) | -11.6% | -13.1% |
| Market cap | $34.6B | – |
| P/E (trailing) | 20.6 | – |
| Dividend yield | 3.43% | 2.70% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $23.1B |
| Sector / category | Utilities | Sector ETF |
XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Year-by-year returns
| Year | WEC | XLU |
|---|---|---|
| 2022 | -0.5% | +1.4% |
| 2023 | -7.0% | -7.2% |
| 2024 | +16.1% | +23.3% |
| 2025 | +16.0% | +16.0% |
| 2026 | +3.4% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
WEC represents 2.58% of XLU's portfolio, so part of any move in XLU is WEC itself, and the correlation between them is partly mechanical.
Are WEC and XLU good diversifiers for each other?
No. With a correlation of 0.80, WEC and XLU move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between WEC and XLU?
The WEC/XLU correlation stands at 0.80 on a 3-year window (1 year: 0.89, 5 years: 0.86), computed from weekly returns as of 2026-08-27.
Is XLU a good diversifier for WEC?
No. With a correlation of 0.80, WEC and XLU move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.80 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/wec-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/wec-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: WEC correlations · XLU correlations
