DGRO vs XLI: Correlation & Overlap
iShares Core Dividend Growth ETF (DGRO) and Industrial Select Sector SPDR Fund (XLI) show a very strong relationship: their 3-year correlation of weekly returns is 0.88. The two funds also share 10.8% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and XLI?
Across a 3-year window, the weekly returns of DGRO and XLI correlate at 0.88, very strong, meaning they move nearly in lockstep. The past 12 months show a weaker link (0.76) than the 3-year average (0.88). Stretching to 5 years gives 0.90, with an annualized covariance of 158.3 %².
By 3-year correlation, XLI places #12 of the 138 assets tracked against DGRO. Twelve-month performance is nearly a tie, at +21.0% for DGRO and +18.3% for XLI. Stability stands out here, with the rolling one-year correlation confined to 0.76 through 0.94.
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 XLI: side by side
| DGRO (iShares Core Dividend Growth ETF) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +21.0% | +18.3% |
| 5-year return | +67.9% | +84.0% |
| Volatility (ann.) | 11.4% | 15.7% |
| Beta vs S&P 500 | 0.65 | 0.89 |
| Max drawdown (3Y) | -14.0% | -18.5% |
| Dividend yield | 1.89% | 1.15% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $42.8B | $32.9B |
| 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. XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Portfolio overlap between DGRO and XLI
The two portfolios are largely distinct: 10.8% of the funds' weight sits in the same underlying holdings (56 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in DGRO | Weight in XLI |
|---|---|---|
| RTX | 0.98% | 5.04% |
| UNP | 0.80% | 3.25% |
| ADP | 0.71% | 1.98% |
| LMT | 0.62% | 2.02% |
| CAT | 0.53% | 6.68% |
| ITW | 0.44% | 1.32% |
| DE | 0.38% | 2.81% |
| ETN | 0.37% | 2.87% |
| GD | 0.36% | 1.71% |
| HON | 0.33% | 1.23% |
| EMR | 0.30% | 1.56% |
| WM | 0.30% | 1.44% |
| FDX | 0.28% | 1.30% |
| NOC | 0.28% | 1.30% |
| FAST | 0.25% | 1.04% |
Largest positions held only by DGRO: MSFT (3.39%), JNJ (3.16%), JPM (3.14%), ABBV (3.03%), XOM (2.86%). Only by XLI: GE (6.52%), GEV (4.52%), BA (2.95%), UBER (2.82%), VRT (1.79%).
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 | XLI |
|---|---|---|
| 2022 | -7.9% | -5.6% |
| 2023 | +10.5% | +18.1% |
| 2024 | +16.6% | +17.3% |
| 2025 | +15.7% | +19.3% |
| 2026 | +15.2% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and XLI good diversifiers for each other?
No. With a correlation of 0.88, DGRO and XLI move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between DGRO and XLI?
The DGRO/XLI correlation stands at 0.88 on a 3-year window (1 year: 0.76, 5 years: 0.90), computed from weekly returns as of 2026-08-27.
Is XLI a good diversifier for DGRO?
No. With a correlation of 0.88, DGRO and XLI move nearly in lockstep, so holding both adds very little diversification.
How much do DGRO and XLI overlap?
10.8% by weight, across 56 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dgro-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/dgro-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: DGRO correlations · XLI correlations
