XLE vs XLI: Correlation & Overlap
Energy Select Sector SPDR Fund (XLE) and Industrial Select Sector SPDR Fund (XLI) show a moderate relationship: their 3-year correlation of weekly returns is 0.30. The two funds also share 0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are XLE and XLI?
On 3 years of weekly data the XLE/XLI correlation comes out at 0.30, moderate. The past 12 months show a weaker link (-0.20) than the 3-year average (0.30). The 5-year figure is 0.40, and annualized covariance runs at 108.1 %².
Among the 121 assets we track against XLE, XLI ranks #76 by 3-year correlation. The last year tells two different stories: XLE led by 25.7 percentage points, +44.0% for XLE against +18.3% for XLI. The relationship is regime-dependent: the rolling one-year correlation swung between -0.21 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.
XLE vs XLI: side by side
| XLE (Energy Select Sector SPDR Fund) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +44.0% | +18.3% |
| 5-year return | +206.7% | +84.0% |
| Volatility (ann.) | 23.1% | 15.7% |
| Beta vs S&P 500 | 0.27 | 0.89 |
| Max drawdown (3Y) | -20.1% | -18.5% |
| Dividend yield | 2.55% | 1.15% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $39.2B | $32.9B |
| Sector / category | Sector ETF | Sector ETF |
On the fund side, XLE sits in the Equity Energy category at State Street Investment Management, with $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% 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 XLE and XLI
The two portfolios are largely distinct. Weighing the shared positions, 0% of the two funds is identical, spread across 0 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by XLE: XOM (20.03%), CVX (14.84%), COP (6.30%), MPC (5.40%), PSX (5.37%). 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 | XLE | XLI |
|---|---|---|
| 2022 | +64.3% | -5.6% |
| 2023 | -0.6% | +18.1% |
| 2024 | +5.6% | +17.3% |
| 2025 | +7.9% | +19.3% |
| 2026 | +41.2% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLE and XLI good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.30 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between XLE and XLI?
As of 2026-08-27, the correlation of weekly returns between XLE and XLI is 0.30 over 3 years, -0.20 over 1 year and 0.40 over 5 years.
Is XLI a good diversifier for XLE?
Yes, to a useful degree: a correlation of 0.30 leaves real independence between the two, which historically damped combined volatility.
How much do XLE and XLI overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/xle-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/xle-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: XLE correlations · XLI correlations
