DGRO vs XLV: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Core Dividend Growth ETF (DGRO) and Health Care Select Sector SPDR Fund (XLV) carry a correlation of 0.68, a strong link. Looking through to holdings, 18.5% 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 XLV?
Over the past 3 years, DGRO and XLV moved with a correlation of 0.68, which is strong. The relationship has been stable: the 1-year correlation (0.60) sits close to the 3-year figure. Over 5 years the correlation is 0.74, and the annualized covariance of weekly returns is 113.6 %².
By 3-year correlation, XLV places #39 of the 138 assets tracked against DGRO. The trailing year gives XLV the advantage: +21.0% versus +27.5%, a 6.5-point spread. Stability stands out here, with the rolling one-year correlation confined to 0.62 through 0.81.
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 XLV: side by side
| DGRO (iShares Core Dividend Growth ETF) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +21.0% | +27.5% |
| 5-year return | +67.9% | +37.4% |
| Volatility (ann.) | 11.4% | 14.7% |
| Beta vs S&P 500 | 0.65 | 0.42 |
| Max drawdown (3Y) | -14.0% | -17.1% |
| Dividend yield | 1.89% | 1.56% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $42.8B | $41.7B |
| 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. On the fund side, XLV sits in the Health category at State Street Investment Management, with $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield.
Portfolio overlap between DGRO and XLV
The two portfolios partially overlap, with 26 holdings in common adding up to 18.5% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in DGRO | Weight in XLV |
|---|---|---|
| JNJ | 3.16% | 10.38% |
| ABBV | 3.03% | 7.42% |
| MRK | 2.20% | 6.04% |
| UNH | 1.67% | 5.82% |
| AMGN | 1.45% | 3.80% |
| LLY | 1.21% | 15.03% |
| ABT | 1.16% | 3.17% |
| GILD | 0.99% | 2.94% |
| MDT | 0.88% | 1.89% |
| CI | 0.32% | 1.19% |
| BDX | 0.31% | 0.84% |
| ELV | 0.29% | 1.40% |
| SYK | 0.29% | 1.82% |
| DHR | 0.26% | 2.17% |
| TMO | 0.20% | 3.76% |
Largest positions held only by DGRO: MSFT (3.39%), JPM (3.14%), XOM (2.86%), AAPL (2.85%), AVGO (2.28%). Only by XLV: PFE (2.58%), VRTX (2.22%), BMY (2.20%), ISRG (2.10%), CVS (1.92%).
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 | XLV |
|---|---|---|
| 2022 | -7.9% | -2.1% |
| 2023 | +10.5% | +2.1% |
| 2024 | +16.6% | +2.5% |
| 2025 | +15.7% | +14.5% |
| 2026 | +15.2% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and XLV good diversifiers for each other?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between DGRO and XLV?
Using weekly returns as of 2026-08-27: 0.68 over 3 years, with 0.60 over the last year and 0.74 over 5 years.
Is XLV a good diversifier for DGRO?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do DGRO and XLV overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 18.5% by weight over 26 common positions.
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Hubs: DGRO correlations · XLV correlations
