XLI vs XLY: Correlation & Overlap
How closely do Industrial Select Sector SPDR Fund (XLI) and Consumer Discretionary Select Sector SPDR Fund (XLY) trade together? Their weekly returns over three years give a correlation of 0.64, which is strong. By holdings, the two funds overlap 0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are XLI and XLY?
On 3 years of weekly data the XLI/XLY correlation comes out at 0.64, strong. Lately the two have drifted apart, with the 1-year correlation at 0.37 versus 0.64 over 3 years. The 5-year figure is 0.72, and annualized covariance runs at 197.4 %².
Among the 204 assets we track against XLI, XLY ranks #79 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLI outperformed by 18.4 percentage points (+18.3% for XLI against -0.1% for XLY). On a rolling one-year basis the correlation drifted between 0.38 and 0.83, 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 XLY: side by side
| XLI (Industrial Select Sector SPDR Fund) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +18.3% | -0.1% |
| 5-year return | +84.0% | +31.8% |
| Volatility (ann.) | 15.7% | 19.7% |
| Beta vs S&P 500 | 0.89 | 1.15 |
| Max drawdown (3Y) | -18.5% | -26.0% |
| Dividend yield | 1.15% | 0.78% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $32.9B | $22.5B |
| Sector / category | Sector ETF | Sector ETF |
On the fund side, XLI sits in the Industrials category at State Street Investment Management, with $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield. XLY is a Consumer Cyclical fund from State Street Investment Management: $22.5B under management, 47 holdings, a 0.08% expense ratio, a 0.78% trailing dividend yield.
Portfolio overlap between XLI and XLY
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 XLY: AMZN (24.32%), TSLA (16.18%), HD (5.54%), MCD (4.11%), BKNG (4.04%).
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 | XLY |
|---|---|---|
| 2022 | -5.6% | -36.3% |
| 2023 | +18.1% | +39.6% |
| 2024 | +17.3% | +26.5% |
| 2025 | +19.3% | +7.4% |
| 2026 | +15.9% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLI and XLY good diversifiers for each other?
To a limited degree. At 0.64 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between XLI and XLY?
Using weekly returns as of 2026-08-27: 0.64 over 3 years, with 0.37 over the last year and 0.72 over 5 years.
Is XLY a good diversifier for XLI?
To a limited degree. At 0.64 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do XLI and XLY overlap?
The two funds share 0 holdings amounting to 0% of weight, per issuer portfolio files dated 2026-08-26.
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Hubs: XLI correlations · XLY correlations
