XLI vs XLU: Correlation & Overlap
How closely do Industrial Select Sector SPDR Fund (XLI) and Utilities Select Sector SPDR Fund (XLU) trade together? Their weekly returns over three years give a correlation of 0.40, which is moderate. 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 XLI and XLU?
Across a 3-year window, the weekly returns of XLI and XLU correlate at 0.40, moderate. The past 12 months show a weaker link (0.27) than the 3-year average (0.40). Stretching to 5 years gives 0.50, with an annualized covariance of 100.3 %².
Among the 204 assets we track against XLI, XLU ranks #179 by 3-year correlation. On 12-month performance XLI holds a 14.2-point edge, +18.3% against +4.1%. On a rolling one-year basis the correlation drifted between 0.20 and 0.64, a moderate band.
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 XLU: side by side
| XLI (Industrial Select Sector SPDR Fund) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +18.3% | +4.1% |
| 5-year return | +84.0% | +46.3% |
| Volatility (ann.) | 15.7% | 15.8% |
| Beta vs S&P 500 | 0.89 | 0.26 |
| Max drawdown (3Y) | -18.5% | -13.1% |
| Dividend yield | 1.15% | 2.70% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $32.9B | $23.1B |
| 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. 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 XLI and XLU
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 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 | XLI | XLU |
|---|---|---|
| 2022 | -5.6% | +1.4% |
| 2023 | +18.1% | -7.2% |
| 2024 | +17.3% | +23.3% |
| 2025 | +19.3% | +16.0% |
| 2026 | +15.9% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLI and XLU good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between XLI and XLU?
As of 2026-08-27, the correlation of weekly returns between XLI and XLU is 0.40 over 3 years, 0.27 over 1 year and 0.50 over 5 years.
Is XLU a good diversifier for XLI?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
How much do XLI 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/xli-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/xli-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: XLI correlations · XLU correlations
