XLI vs XLP: Correlation & Overlap
Measured on weekly returns over the past three years, Industrial Select Sector SPDR Fund (XLI) and Consumer Staples Select Sector SPDR Fund (XLP) carry a correlation of 0.44, a moderate link. 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 XLI and XLP?
On 3 years of weekly data the XLI/XLP correlation comes out at 0.44, moderate. The relationship has been stable: the 1-year correlation (0.36) sits close to the 3-year figure. The 5-year figure is 0.57, and annualized covariance runs at 76.8 %².
By 3-year correlation, XLP places #174 of the 204 assets tracked against XLI. The trailing year gives XLI the advantage: +18.3% versus +8.3%, a 10.0-point spread. The rolling one-year correlation moved between 0.37 and 0.70 over the past three years, a moderate range.
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.
XLI vs XLP: side by side
| XLI (Industrial Select Sector SPDR Fund) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +18.3% | +8.3% |
| 5-year return | +84.0% | +34.7% |
| Volatility (ann.) | 15.7% | 11.1% |
| Beta vs S&P 500 | 0.89 | 0.23 |
| Max drawdown (3Y) | -18.5% | -9.7% |
| Dividend yield | 1.15% | 2.58% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $32.9B | $14.6B |
| Sector / category | Sector ETF | Sector ETF |
XLI, State Street Investment Management's Industrials fund, carries $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield. On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Portfolio overlap between XLI and XLP
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 XLI: CAT (6.68%), GE (6.52%), RTX (5.04%), GEV (4.52%), UNP (3.25%). Only by XLP: WMT (9.62%), COST (8.92%), KO (7.34%), PG (7.10%), PM (6.36%).
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 | XLI | XLP |
|---|---|---|
| 2022 | -5.6% | -0.8% |
| 2023 | +18.1% | -0.8% |
| 2024 | +17.3% | +12.2% |
| 2025 | +19.3% | +1.5% |
| 2026 | +15.9% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLI and XLP good diversifiers for each other?
Reasonably. At 0.44, XLI and XLP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between XLI and XLP?
As of 2026-08-27, the correlation of weekly returns between XLI and XLP is 0.44 over 3 years, 0.36 over 1 year and 0.57 over 5 years.
Is XLP a good diversifier for XLI?
Reasonably. At 0.44, XLI and XLP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do XLI and XLP 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/xli-vs-xlp.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/xli-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: XLI correlations · XLP correlations
