DGRO vs XLP: Correlation & Overlap
How closely do iShares Core Dividend Growth ETF (DGRO) and Consumer Staples Select Sector SPDR Fund (XLP) trade together? Their weekly returns over three years give a correlation of 0.61, which is strong. By holdings, the two funds overlap 11.6% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and XLP?
Across a 3-year window, the weekly returns of DGRO and XLP correlate at 0.61, strong. The relationship has been stable: the 1-year correlation (0.58) sits close to the 3-year figure. Stretching to 5 years gives 0.72, with an annualized covariance of 77.3 %².
By 3-year correlation, XLP places #66 of the 138 assets tracked against DGRO. Over the last 12 months DGRO came out ahead by 12.7 percentage points (+21.0% against +8.3%). The rolling one-year correlation moved between 0.54 and 0.81 over the past three years, a moderate range.
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 XLP: side by side
| DGRO (iShares Core Dividend Growth ETF) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +21.0% | +8.3% |
| 5-year return | +67.9% | +34.7% |
| Volatility (ann.) | 11.4% | 11.1% |
| Beta vs S&P 500 | 0.65 | 0.23 |
| Max drawdown (3Y) | -14.0% | -9.7% |
| Dividend yield | 1.89% | 2.58% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $42.8B | $14.6B |
| 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. On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Portfolio overlap between DGRO and XLP
The two portfolios are largely distinct: 11.6% of the funds' weight sits in the same underlying holdings (19 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in DGRO | Weight in XLP |
|---|---|---|
| PG | 2.13% | 7.10% |
| PM | 2.12% | 6.36% |
| KO | 1.98% | 7.34% |
| PEP | 1.66% | 4.39% |
| WMT | 0.80% | 9.62% |
| MDLZ | 0.56% | 4.37% |
| COST | 0.54% | 8.92% |
| CL | 0.38% | 4.56% |
| KDP | 0.27% | 2.75% |
| SYY | 0.24% | 2.50% |
| ADM | 0.20% | 2.42% |
| KR | 0.16% | 2.08% |
| STZ | 0.12% | 1.18% |
| MKC | 0.12% | 0.88% |
| TSN | 0.12% | 1.00% |
Largest positions held only by DGRO: MSFT (3.39%), JNJ (3.16%), JPM (3.14%), ABBV (3.03%), XOM (2.86%). Only by XLP: TGT (4.67%), MNST (4.28%), MO (4.21%), KVUE (2.32%), KMB (2.30%).
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 | XLP |
|---|---|---|
| 2022 | -7.9% | -0.8% |
| 2023 | +10.5% | -0.8% |
| 2024 | +16.6% | +12.2% |
| 2025 | +15.7% | +1.5% |
| 2026 | +15.2% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and XLP good diversifiers for each other?
To a limited degree. At 0.61 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 XLP?
The DGRO/XLP correlation stands at 0.61 on a 3-year window (1 year: 0.58, 5 years: 0.72), computed from weekly returns as of 2026-08-27.
Is XLP a good diversifier for DGRO?
To a limited degree. At 0.61 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 XLP overlap?
11.6% by weight, across 19 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-xlp.json
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[](https://www.pairbook.io/pair/dgro-vs-xlp/)
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Hubs: DGRO correlations · XLP correlations
