DGRO vs XLB: Correlation & Overlap
How closely do iShares Core Dividend Growth ETF (DGRO) and Materials Select Sector SPDR Fund (XLB) trade together? Their weekly returns over three years give a correlation of 0.81, which is very strong. The two funds also share 2.2% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and XLB?
Across a 3-year window, the weekly returns of DGRO and XLB correlate at 0.81, very strong, meaning they move nearly in lockstep. The past 12 months show a weaker link (0.65) than the 3-year average (0.81). Stretching to 5 years gives 0.83, with an annualized covariance of 154.6 %².
By 3-year correlation, XLB places #23 of the 138 assets tracked against DGRO. Twelve-month performance is nearly a tie, at +21.0% for DGRO and +17.6% for XLB. Stability stands out here, with the rolling one-year correlation confined to 0.67 through 0.91.
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.
DGRO vs XLB: side by side
| DGRO (iShares Core Dividend Growth ETF) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +21.0% | +17.6% |
| 5-year return | +67.9% | +36.9% |
| Volatility (ann.) | 11.4% | 16.7% |
| Beta vs S&P 500 | 0.65 | 0.72 |
| Max drawdown (3Y) | -14.0% | -23.2% |
| Dividend yield | 1.89% | 1.68% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $42.8B | $8.3B |
| Sector / category | ETF · Dividend | Sector ETF |
DGRO is a Large Value fund from iShares: $42.8B under management, 383 holdings, a 0.08% expense ratio, a 1.89% trailing dividend yield. XLB is a Natural Resources fund from State Street Investment Management: $8.3B under management, 26 holdings, a 0.08% expense ratio, a 1.68% trailing dividend yield.
Portfolio overlap between DGRO and XLB
The two portfolios are largely distinct: 2.2% of the funds' weight sits in the same underlying holdings (13 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in DGRO | Weight in XLB |
|---|---|---|
| LIN | 0.61% | 12.94% |
| APD | 0.38% | 4.71% |
| CRH | 0.21% | 4.12% |
| SHW | 0.18% | 4.87% |
| ECL | 0.18% | 4.80% |
| PPG | 0.14% | 3.32% |
| CTVA | 0.11% | 4.72% |
| NUE | 0.11% | 4.28% |
| AVY | 0.07% | 1.82% |
| MOS | 0.06% | 1.00% |
| VMC | 0.06% | 4.26% |
| STLD | 0.05% | 3.73% |
| MLM | 0.04% | 4.09% |
Largest positions held only by DGRO: MSFT (3.39%), JNJ (3.16%), JPM (3.14%), ABBV (3.03%), XOM (2.86%). Only by XLB: NEM (8.02%), FCX (6.48%), SW (3.39%), IFF (2.90%), IP (2.86%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 13 common positions shown.
Year-by-year returns
| Year | DGRO | XLB |
|---|---|---|
| 2022 | -7.9% | -12.3% |
| 2023 | +10.5% | +12.5% |
| 2024 | +16.6% | +0.1% |
| 2025 | +15.7% | +9.9% |
| 2026 | +15.2% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and XLB good diversifiers for each other?
Not really. At 0.81, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between DGRO and XLB?
As of 2026-08-27, the correlation of weekly returns between DGRO and XLB is 0.81 over 3 years, 0.65 over 1 year and 0.83 over 5 years.
Is XLB a good diversifier for DGRO?
Not really. At 0.81, the two trade almost as one position, and owning both buys little extra protection.
How much do DGRO and XLB overlap?
The two funds share 13 holdings amounting to 2.2% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
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Related comparisons
Hubs: DGRO correlations · XLB correlations
