XLP vs XLU: Correlation & Overlap
Measured on weekly returns over the past three years, Consumer Staples Select Sector SPDR Fund (XLP) and Utilities Select Sector SPDR Fund (XLU) carry a correlation of 0.44, a moderate link. 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 XLP and XLU?
Over the past 3 years, XLP and XLU moved with a correlation of 0.44, which is moderate. The relationship has been stable: the 1-year correlation (0.38) sits close to the 3-year figure. Over 5 years the correlation is 0.57, and the annualized covariance of weekly returns is 77.1 %².
Among the 110 assets we track against XLP, XLU ranks #54 by 3-year correlation. Neither side won the trailing year by much: +8.3% against +4.1%. The rolling one-year correlation moved between 0.30 and 0.77 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.
XLP vs XLU: side by side
| XLP (Consumer Staples Select Sector SPDR Fund) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +8.3% | +4.1% |
| 5-year return | +34.7% | +46.3% |
| Volatility (ann.) | 11.1% | 15.8% |
| Beta vs S&P 500 | 0.23 | 0.26 |
| Max drawdown (3Y) | -9.7% | -13.1% |
| Dividend yield | 2.58% | 2.70% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $14.6B | $23.1B |
| Sector / category | Sector ETF | Sector ETF |
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. 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 XLP and XLU
The two portfolios are largely distinct, with 0 holdings in common adding up to 0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by XLP: WMT (9.62%), COST (8.92%), KO (7.34%), PG (7.10%), PM (6.36%). 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 | XLP | XLU |
|---|---|---|
| 2022 | -0.8% | +1.4% |
| 2023 | -0.8% | -7.2% |
| 2024 | +12.2% | +23.3% |
| 2025 | +1.5% | +16.0% |
| 2026 | +10.9% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLP and XLU good diversifiers for each other?
A fair diversifier. At 0.44, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between XLP and XLU?
The XLP/XLU correlation stands at 0.44 on a 3-year window (1 year: 0.38, 5 years: 0.57), computed from weekly returns as of 2026-08-27.
Is XLU a good diversifier for XLP?
A fair diversifier. At 0.44, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do XLP and XLU 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/xlp-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/xlp-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: XLP correlations · XLU correlations
