XLE vs XOM: Correlation
Energy Select Sector SPDR Fund (XLE) and ExxonMobil (XOM) show a very strong relationship: their 3-year correlation of weekly returns is 0.92.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are XLE and XOM?
On 3 years of weekly data the XLE/XOM correlation comes out at 0.92, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.91) sits close to the 3-year figure. The 5-year figure is 0.93, and annualized covariance runs at 513.5 %².
XOM is one of the assets that tracks XLE most closely: it ranks #2 out of the 121 assets we track against XLE. Neither side won the trailing year by much: +44.0% against +42.8%. Stability stands out here, with the rolling one-year correlation confined to 0.90 through 0.94.
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 XOM: side by side
| XLE (Energy Select Sector SPDR Fund) | XOM (ExxonMobil) | |
|---|---|---|
| 1-year return | +44.0% | +42.8% |
| 5-year return | +206.7% | +237.9% |
| Volatility (ann.) | 23.1% | 24.3% |
| Beta vs S&P 500 | 0.27 | 0.01 |
| Max drawdown (3Y) | -20.1% | -20.1% |
| Market cap | – | $643.3B |
| P/E (trailing) | – | 20.1 |
| Dividend yield | 2.55% | 2.58% |
| Expense ratio | 0.08% | – |
| Assets under management | $39.2B | – |
| Sector / category | Sector ETF | Energy |
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.
Year-by-year returns
| Year | XLE | XOM |
|---|---|---|
| 2022 | +64.3% | +87.4% |
| 2023 | -0.6% | -6.3% |
| 2024 | +5.6% | +11.3% |
| 2025 | +7.9% | +16.0% |
| 2026 | +41.2% | +32.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLE holds XOM at a 20.03% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are XLE and XOM good diversifiers for each other?
Not really. At 0.92, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between XLE and XOM?
The XLE/XOM correlation stands at 0.92 on a 3-year window (1 year: 0.91, 5 years: 0.93), computed from weekly returns as of 2026-08-27.
Is XOM a good diversifier for XLE?
Not really. At 0.92, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.92 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.
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Related comparisons
Hubs: XLE correlations · XOM correlations
