DGRO vs XLC: Correlation & Overlap
How closely do iShares Core Dividend Growth ETF (DGRO) and Communication Services Select Sector SPDR Fund (XLC) trade together? Their weekly returns over three years give a correlation of 0.64, which is strong. The two funds also share 0.0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and XLC?
On 3 years of weekly data the DGRO/XLC correlation comes out at 0.64, strong. The past 12 months show a weaker link (0.38) than the 3-year average (0.64). The 5-year figure is 0.69, and annualized covariance runs at 116.5 %².
Within DGRO's tracked universe of 138 assets, XLC comes in at #58 by 3-year correlation. Correlation aside, the last 12 months split them widely, with DGRO ahead by 19.5 points (+21.0% versus +1.5%). Across three years, the rolling one-year figure varied moderately, from 0.37 to 0.85.
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 XLC: side by side
| DGRO (iShares Core Dividend Growth ETF) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +21.0% | +1.5% |
| 5-year return | +67.9% | +37.5% |
| Volatility (ann.) | 11.4% | 16.0% |
| Beta vs S&P 500 | 0.65 | 0.90 |
| Max drawdown (3Y) | -14.0% | -18.0% |
| Dividend yield | 1.89% | 1.32% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $42.8B | $21.7B |
| Sector / category | ETF · Dividend | Sector ETF |
DGRO, iShares's Large Value fund, carries $42.8B under management, 383 holdings, a 0.08% expense ratio, a 1.89% trailing dividend yield. On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Portfolio overlap between DGRO and XLC
The two portfolios are largely distinct, with 2 holdings in common adding up to 0.0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by DGRO: MSFT (3.39%), JNJ (3.16%), JPM (3.14%), ABBV (3.03%), XOM (2.86%). Only by XLC: META (16.73%), GOOGL (10.29%), GOOG (8.22%), T (5.20%), VZ (4.99%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 2 common positions shown.
Year-by-year returns
| Year | DGRO | XLC |
|---|---|---|
| 2022 | -7.9% | -37.6% |
| 2023 | +10.5% | +52.8% |
| 2024 | +16.6% | +34.7% |
| 2025 | +15.7% | +23.1% |
| 2026 | +15.2% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and XLC 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 DGRO and XLC?
The DGRO/XLC correlation stands at 0.64 on a 3-year window (1 year: 0.38, 5 years: 0.69), computed from weekly returns as of 2026-08-27.
Is XLC a good diversifier for DGRO?
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 DGRO and XLC overlap?
The two funds share 2 holdings amounting to 0.0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dgro-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/dgro-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: DGRO correlations · XLC correlations
