DGRO vs XLF: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Core Dividend Growth ETF (DGRO) and Financial Select Sector SPDR Fund (XLF) carry a correlation of 0.85, a very strong link. Looking through to holdings, 19.3% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and XLF?
On 3 years of weekly data the DGRO/XLF correlation comes out at 0.85, very strong, meaning they move nearly in lockstep. Lately the two have drifted apart, with the 1-year correlation at 0.68 versus 0.85 over 3 years. The 5-year figure is 0.88, and annualized covariance runs at 156.8 %².
By 3-year correlation, XLF places #16 of the 138 assets tracked against DGRO. On 12-month performance DGRO holds a 11.7-point edge, +21.0% against +9.3%. On a rolling one-year basis the correlation drifted between 0.68 and 0.95, a moderate band.
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 XLF: side by side
| DGRO (iShares Core Dividend Growth ETF) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +21.0% | +9.3% |
| 5-year return | +67.9% | +64.2% |
| Volatility (ann.) | 11.4% | 16.2% |
| Beta vs S&P 500 | 0.65 | 0.84 |
| Max drawdown (3Y) | -14.0% | -15.5% |
| Dividend yield | 1.89% | 1.42% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $42.8B | $57.9B |
| Sector / category | ETF · Dividend | Sector ETF |
On the fund side, DGRO sits in the Large Value category at iShares, with $42.8B under management, 383 holdings, a 0.08% expense ratio, a 1.89% trailing dividend yield. XLF is a Financial fund from State Street Investment Management: $57.9B under management, 77 holdings, a 0.08% expense ratio, a 1.42% trailing dividend yield.
Portfolio overlap between DGRO and XLF
The two portfolios partially overlap, with 48 holdings in common adding up to 19.3% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in DGRO | Weight in XLF |
|---|---|---|
| JPM | 3.14% | 11.61% |
| BAC | 1.80% | 4.94% |
| WFC | 1.22% | 3.17% |
| V | 1.13% | 7.74% |
| GS | 1.11% | 3.73% |
| MS | 1.02% | 3.12% |
| C | 0.86% | 2.77% |
| BLK | 0.79% | 2.06% |
| MA | 0.73% | 5.87% |
| PNC | 0.62% | 1.19% |
| AXP | 0.46% | 2.17% |
| CME | 0.44% | 1.24% |
| MRSH | 0.42% | 1.13% |
| BNY | 0.34% | 1.36% |
| FITB | 0.32% | 0.61% |
Largest positions held only by DGRO: MSFT (3.39%), JNJ (3.16%), ABBV (3.03%), XOM (2.86%), AAPL (2.85%). Only by XLF: BRK.B (11.25%), SCHW (2.17%), COF (1.64%), PGR (1.58%), BX (1.29%).
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 | DGRO | XLF |
|---|---|---|
| 2022 | -7.9% | -10.6% |
| 2023 | +10.5% | +12.0% |
| 2024 | +16.6% | +30.6% |
| 2025 | +15.7% | +14.9% |
| 2026 | +15.2% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and XLF good diversifiers for each other?
Not really. At 0.85, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between DGRO and XLF?
The DGRO/XLF correlation stands at 0.85 on a 3-year window (1 year: 0.68, 5 years: 0.88), computed from weekly returns as of 2026-08-27.
Is XLF a good diversifier for DGRO?
Not really. At 0.85, the two trade almost as one position, and owning both buys little extra protection.
How much do DGRO and XLF overlap?
The two funds share 48 holdings amounting to 19.3% of weight, per issuer portfolio files dated 2026-08-26.
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