ACWI vs XLV: Correlation & Overlap
iShares MSCI ACWI ETF (ACWI) and Health Care Select Sector SPDR Fund (XLV) show a moderate relationship: their 3-year correlation of weekly returns is 0.45. The two funds also share 5.8% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and XLV?
Across a 3-year window, the weekly returns of ACWI and XLV correlate at 0.45, moderate. The link has loosened recently: the 1-year correlation (0.17) runs below the 3-year figure (0.45). Stretching to 5 years gives 0.58, with an annualized covariance of 92.2 %².
Within ACWI's tracked universe of 119 assets, XLV comes in at #103 by 3-year correlation. Twelve-month performance is nearly a tie, at +22.7% for ACWI and +27.5% for XLV. Across three years, the rolling one-year figure varied moderately, from 0.21 to 0.67.
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.
ACWI vs XLV: side by side
| ACWI (iShares MSCI ACWI ETF) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.7% | +27.5% |
| 5-year return | +69.0% | +37.4% |
| Volatility (ann.) | 13.8% | 14.7% |
| Beta vs S&P 500 | 0.92 | 0.42 |
| Max drawdown (3Y) | -16.5% | -17.1% |
| Dividend yield | 1.44% | 1.56% |
| Expense ratio | 0.32% | 0.08% |
| Assets under management | $32.5B | $41.7B |
| Sector / category | ETF · Global | Sector ETF |
On the fund side, ACWI sits in the Global Large-Stock Blend category at iShares, with $32.5B under management, 1590 holdings, a 0.32% expense ratio, a 1.44% trailing dividend yield. On the fund side, XLV sits in the Health category at State Street Investment Management, with $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield.
Portfolio overlap between ACWI and XLV
The two portfolios are largely distinct, with 48 holdings in common adding up to 5.8% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in ACWI | Weight in XLV |
|---|---|---|
| LLY | 0.91% | 15.03% |
| JNJ | 0.62% | 10.38% |
| ABBV | 0.45% | 7.42% |
| MRK | 0.38% | 6.04% |
| UNH | 0.35% | 5.82% |
| AMGN | 0.23% | 3.80% |
| TMO | 0.23% | 3.76% |
| ABT | 0.19% | 3.17% |
| GILD | 0.18% | 2.94% |
| PFE | 0.15% | 2.58% |
| DHR | 0.13% | 2.17% |
| BMY | 0.13% | 2.20% |
| VRTX | 0.13% | 2.22% |
| ISRG | 0.13% | 2.10% |
| CVS | 0.12% | 1.92% |
Largest positions held only by ACWI: NVDA (4.64%), AAPL (4.41%), MSFT (3.35%), AMZN (2.41%), GOOGL (1.91%). Only by XLV: MRNA (0.84%), VTRS (0.31%), CRL (0.23%), RVTY (0.23%), BAX (0.22%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | ACWI | XLV |
|---|---|---|
| 2022 | -18.4% | -2.1% |
| 2023 | +22.3% | +2.1% |
| 2024 | +17.4% | +2.5% |
| 2025 | +22.4% | +14.5% |
| 2026 | +14.9% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and XLV good diversifiers for each other?
A fair diversifier. At 0.45, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between ACWI and XLV?
As of 2026-08-27, the correlation of weekly returns between ACWI and XLV is 0.45 over 3 years, 0.17 over 1 year and 0.58 over 5 years.
Is XLV a good diversifier for ACWI?
A fair diversifier. At 0.45, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do ACWI and XLV overlap?
The two funds share 48 holdings amounting to 5.8% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/acwi-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/acwi-vs-xlv/)
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Hubs: ACWI correlations · XLV correlations
