WTW vs XLF: Correlation
Measured on weekly returns over the past three years, Willis Towers Watson (WTW) and Financial Select Sector SPDR Fund (XLF) carry a correlation of 0.41, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are WTW and XLF?
Across a 3-year window, the weekly returns of WTW and XLF correlate at 0.41, moderate. The past 12 months show a tighter link (0.55) than the 3-year average (0.41). Stretching to 5 years gives 0.52, with an annualized covariance of 157.4 %².
Within WTW's tracked universe of 30 assets, XLF comes in at #17 by 3-year correlation. The trailing year gives XLF the advantage: +4.2% versus +9.3%, a 5.1-point spread. The relationship is regime-dependent: the rolling one-year correlation swung between 0.13 and 0.65 over the past three years, so this pair behaves very differently depending on the market environment.
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.
WTW vs XLF: side by side
| WTW (Willis Towers Watson) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +4.2% | +9.3% |
| 5-year return | +68.3% | +64.2% |
| Volatility (ann.) | 23.5% | 16.2% |
| Beta vs S&P 500 | 0.32 | 0.84 |
| Max drawdown (3Y) | -30.4% | -15.5% |
| Market cap | $31.5B | – |
| P/E (trailing) | 21.2 | – |
| Dividend yield | 0.55% | 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 | WTW | XLF |
|---|---|---|
| 2022 | +4.5% | -10.6% |
| 2023 | +0.1% | +12.0% |
| 2024 | +31.5% | +30.6% |
| 2025 | +6.1% | +14.9% |
| 2026 | +4.1% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.39% of XLF is WTW itself, so the fund partly moves with the stock by construction.
Are WTW and XLF good diversifiers for each other?
A fair diversifier. At 0.41, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between WTW and XLF?
Using weekly returns as of 2026-08-27: 0.41 over 3 years, with 0.55 over the last year and 0.52 over 5 years.
Is XLF a good diversifier for WTW?
A fair diversifier. At 0.41, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.41 mean?
A reading of 0.41 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: WTW correlations · XLF correlations
