XLC vs XLI: Correlation & Overlap
Communication Services Select Sector SPDR Fund (XLC) and Industrial Select Sector SPDR Fund (XLI) show a moderate relationship: their 3-year correlation of weekly returns is 0.58. Looking through to holdings, 0% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are XLC and XLI?
Across a 3-year window, the weekly returns of XLC and XLI correlate at 0.58, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.25 versus 0.58 over 3 years. Stretching to 5 years gives 0.62, with an annualized covariance of 146.2 %².
Among the 91 assets we track against XLC, XLI ranks #37 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLI ahead by 16.8 points (+1.5% versus +18.3%). This link changes with the market regime, having swung between 0.21 and 0.83 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.
XLC vs XLI: side by side
| XLC (Communication Services Select Sector SPDR Fund) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +1.5% | +18.3% |
| 5-year return | +37.5% | +84.0% |
| Volatility (ann.) | 16.0% | 15.7% |
| Beta vs S&P 500 | 0.90 | 0.89 |
| Max drawdown (3Y) | -18.0% | -18.5% |
| Dividend yield | 1.32% | 1.15% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $21.7B | $32.9B |
| Sector / category | Sector ETF | Sector ETF |
On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield. 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.
Portfolio overlap between XLC and XLI
The two portfolios are largely distinct: 0% of the funds' weight sits in the same underlying holdings (0 common positions). Correlation tells you they move together; overlap tells you why.
Largest positions held only by XLC: META (16.73%), GOOGL (10.29%), GOOG (8.22%), T (5.20%), VZ (4.99%). Only by XLI: CAT (6.68%), GE (6.52%), RTX (5.04%), GEV (4.52%), UNP (3.25%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | XLC | XLI |
|---|---|---|
| 2022 | -37.6% | -5.6% |
| 2023 | +52.8% | +18.1% |
| 2024 | +34.7% | +17.3% |
| 2025 | +23.1% | +19.3% |
| 2026 | -4.8% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLC and XLI good diversifiers for each other?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between XLC and XLI?
The XLC/XLI correlation stands at 0.58 on a 3-year window (1 year: 0.25, 5 years: 0.62), computed from weekly returns as of 2026-08-27.
Is XLI a good diversifier for XLC?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do XLC and XLI overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/xlc-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/xlc-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: XLC correlations · XLI correlations
