XLC vs XLU: Correlation & Overlap
Communication Services Select Sector SPDR Fund (XLC) and Utilities Select Sector SPDR Fund (XLU) show a weak relationship: their 3-year correlation of weekly returns is 0.11. 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 XLU?
Over the past 3 years, XLC and XLU moved with a correlation of 0.11, which is weak. The link has loosened recently: the 1-year correlation (-0.17) runs below the 3-year figure (0.11). Over 5 years the correlation is 0.25, and the annualized covariance of weekly returns is 28.9 %².
Within XLC's tracked universe of 91 assets, XLU comes in at #81 by 3-year correlation. Twelve-month performance is nearly a tie, at +1.5% for XLC and +4.1% for XLU. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.21 to 0.44.
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 XLU: side by side
| XLC (Communication Services Select Sector SPDR Fund) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +1.5% | +4.1% |
| 5-year return | +37.5% | +46.3% |
| Volatility (ann.) | 16.0% | 15.8% |
| Beta vs S&P 500 | 0.90 | 0.26 |
| Max drawdown (3Y) | -18.0% | -13.1% |
| Dividend yield | 1.32% | 2.70% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $21.7B | $23.1B |
| Sector / category | Sector ETF | Sector ETF |
XLC is a Communications fund from State Street Investment Management: $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield. 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.
Portfolio overlap between XLC and XLU
The two portfolios are largely distinct, with 0 holdings in common adding up to 0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by XLC: META (16.73%), GOOGL (10.29%), GOOG (8.22%), T (5.20%), VZ (4.99%). Only by XLU: NEE (12.94%), SO (7.45%), DUK (7.00%), CEG (6.58%), AEP (4.94%).
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 | XLU |
|---|---|---|
| 2022 | -37.6% | +1.4% |
| 2023 | +52.8% | -7.2% |
| 2024 | +34.7% | +23.3% |
| 2025 | +23.1% | +16.0% |
| 2026 | -4.8% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLC and XLU good diversifiers for each other?
By historical standards, yes. A correlation of 0.11 means the two rarely move for the same reasons.
FAQ
What is the correlation between XLC and XLU?
The XLC/XLU correlation stands at 0.11 on a 3-year window (1 year: -0.17, 5 years: 0.25), computed from weekly returns as of 2026-08-27.
Is XLU a good diversifier for XLC?
By historical standards, yes. A correlation of 0.11 means the two rarely move for the same reasons.
How much do XLC and XLU overlap?
The two funds share 0 holdings amounting to 0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/xlc-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/xlc-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: XLC correlations · XLU correlations
