DGRO vs XLE: Correlation & Overlap
iShares Core Dividend Growth ETF (DGRO) and Energy Select Sector SPDR Fund (XLE) show a moderate relationship: their 3-year correlation of weekly returns is 0.40. The two funds also share 5.0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and XLE?
Over the past 3 years, DGRO and XLE moved with a correlation of 0.40, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.00 versus 0.40 over 3 years. Over 5 years the correlation is 0.41, and the annualized covariance of weekly returns is 104.6 %².
Among the 138 assets we track against DGRO, XLE ranks #127 by 3-year correlation. The last year tells two different stories: XLE led by 23.0 percentage points, +21.0% for DGRO against +44.0% for XLE. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.00 to 0.65. One caveat on sizing: XLE is 2.0 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 XLE: side by side
| DGRO (iShares Core Dividend Growth ETF) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +21.0% | +44.0% |
| 5-year return | +67.9% | +206.7% |
| Volatility (ann.) | 11.4% | 23.1% |
| Beta vs S&P 500 | 0.65 | 0.27 |
| Max drawdown (3Y) | -14.0% | -20.1% |
| Dividend yield | 1.89% | 2.55% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $42.8B | $39.2B |
| 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. XLE is an Equity Energy fund from State Street Investment Management: $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% trailing dividend yield.
Portfolio overlap between DGRO and XLE
The two portfolios are largely distinct, with 6 holdings in common adding up to 5.0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in DGRO | Weight in XLE |
|---|---|---|
| XOM | 2.86% | 20.03% |
| COP | 0.95% | 6.30% |
| PSX | 0.57% | 5.37% |
| EOG | 0.47% | 4.24% |
| FANG | 0.17% | 2.30% |
| TPL | 0.03% | 1.27% |
Largest positions held only by DGRO: MSFT (3.39%), JNJ (3.16%), JPM (3.14%), ABBV (3.03%), AAPL (2.85%). Only by XLE: CVX (14.84%), MPC (5.40%), VLO (5.05%), SLB (4.46%), WMB (3.84%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 6 common positions shown.
Year-by-year returns
| Year | DGRO | XLE |
|---|---|---|
| 2022 | -7.9% | +64.3% |
| 2023 | +10.5% | -0.6% |
| 2024 | +16.6% | +5.6% |
| 2025 | +15.7% | +7.9% |
| 2026 | +15.2% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and XLE good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between DGRO and XLE?
As of 2026-08-27, the correlation of weekly returns between DGRO and XLE is 0.40 over 3 years, 0.00 over 1 year and 0.41 over 5 years.
Is XLE a good diversifier for DGRO?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
How much do DGRO and XLE overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 5.0% by weight over 6 common positions.
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