DGRO vs XLU: Correlation & Overlap
iShares Core Dividend Growth ETF (DGRO) and Utilities Select Sector SPDR Fund (XLU) show a moderate relationship: their 3-year correlation of weekly returns is 0.46. The two funds also share 6.1% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and XLU?
On 3 years of weekly data the DGRO/XLU correlation comes out at 0.46, moderate. The link has loosened recently: the 1-year correlation (0.28) runs below the 3-year figure (0.46). The 5-year figure is 0.58, and annualized covariance runs at 83.5 %².
Among the 138 assets we track against DGRO, XLU ranks #116 by 3-year correlation. Correlation aside, the last 12 months split them widely, with DGRO ahead by 16.9 points (+21.0% versus +4.1%). Across three years, the rolling one-year figure varied moderately, from 0.25 to 0.65.
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 XLU: side by side
| DGRO (iShares Core Dividend Growth ETF) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +21.0% | +4.1% |
| 5-year return | +67.9% | +46.3% |
| Volatility (ann.) | 11.4% | 15.8% |
| Beta vs S&P 500 | 0.65 | 0.26 |
| Max drawdown (3Y) | -14.0% | -13.1% |
| Dividend yield | 1.89% | 2.70% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $42.8B | $23.1B |
| 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. XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Portfolio overlap between DGRO and XLU
The two portfolios are largely distinct. Weighing the shared positions, 6.1% of the two funds is identical, spread across 21 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in DGRO | Weight in XLU |
|---|---|---|
| NEE | 1.10% | 12.94% |
| SO | 0.71% | 7.45% |
| DUK | 0.70% | 7.00% |
| AEP | 0.42% | 4.94% |
| SRE | 0.35% | 4.11% |
| XEL | 0.31% | 3.57% |
| ED | 0.29% | 2.93% |
| PEG | 0.27% | 2.72% |
| WEC | 0.25% | 2.58% |
| ETR | 0.24% | 3.62% |
| DTE | 0.19% | 2.11% |
| AEE | 0.18% | 2.20% |
| AWK | 0.16% | 1.98% |
| CMS | 0.15% | 1.58% |
| EVRG | 0.14% | 1.40% |
Largest positions held only by DGRO: MSFT (3.39%), JNJ (3.16%), JPM (3.14%), ABBV (3.03%), XOM (2.86%). Only by XLU: CEG (6.58%), D (4.33%), EXC (3.35%), PCG (2.96%), EIX (2.11%).
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 | XLU |
|---|---|---|
| 2022 | -7.9% | +1.4% |
| 2023 | +10.5% | -7.2% |
| 2024 | +16.6% | +23.3% |
| 2025 | +15.7% | +16.0% |
| 2026 | +15.2% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and XLU good diversifiers for each other?
A fair diversifier. At 0.46, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between DGRO and XLU?
As of 2026-08-27, the correlation of weekly returns between DGRO and XLU is 0.46 over 3 years, 0.28 over 1 year and 0.58 over 5 years.
Is XLU a good diversifier for DGRO?
A fair diversifier. At 0.46, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do DGRO and XLU overlap?
6.1% by weight, across 21 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-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/dgro-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: DGRO correlations · XLU correlations
