DGRO vs XLY: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Core Dividend Growth ETF (DGRO) and Consumer Discretionary Select Sector SPDR Fund (XLY) carry a correlation of 0.67, a strong link. By holdings, the two funds overlap 5.4% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and XLY?
On 3 years of weekly data the DGRO/XLY correlation comes out at 0.67, strong. The link has loosened recently: the 1-year correlation (0.47) runs below the 3-year figure (0.67). The 5-year figure is 0.74, and annualized covariance runs at 150.5 %².
Within DGRO's tracked universe of 138 assets, XLY comes in at #42 by 3-year correlation. The last year tells two different stories: DGRO led by 21.1 percentage points, +21.0% for DGRO against -0.1% for XLY. The rolling one-year correlation moved between 0.48 and 0.83 over the past three years, a moderate range. Risk is not evenly split, since XLY carries 1.7 times the volatility of the other side.
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 XLY: side by side
| DGRO (iShares Core Dividend Growth ETF) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +21.0% | -0.1% |
| 5-year return | +67.9% | +31.8% |
| Volatility (ann.) | 11.4% | 19.7% |
| Beta vs S&P 500 | 0.65 | 1.15 |
| Max drawdown (3Y) | -14.0% | -26.0% |
| Dividend yield | 1.89% | 0.78% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $42.8B | $22.5B |
| 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. XLY is a Consumer Cyclical fund from State Street Investment Management: $22.5B under management, 47 holdings, a 0.08% expense ratio, a 0.78% trailing dividend yield.
Portfolio overlap between DGRO and XLY
The two portfolios are largely distinct: 5.4% of the funds' weight sits in the same underlying holdings (15 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in DGRO | Weight in XLY |
|---|---|---|
| HD | 2.11% | 5.54% |
| MCD | 1.07% | 4.11% |
| LOW | 0.57% | 2.94% |
| TJX | 0.38% | 3.55% |
| GPC | 0.18% | 0.48% |
| YUM | 0.18% | 1.06% |
| DRI | 0.16% | 0.62% |
| GRMN | 0.15% | 1.18% |
| ROST | 0.12% | 1.90% |
| EBAY | 0.11% | 1.15% |
| TSCO | 0.11% | 0.46% |
| DHI | 0.10% | 0.98% |
| WSM | 0.09% | 0.70% |
| DPZ | 0.06% | 0.26% |
| PHM | 0.05% | 0.62% |
Largest positions held only by DGRO: MSFT (3.39%), JNJ (3.16%), JPM (3.14%), ABBV (3.03%), XOM (2.86%). Only by XLY: AMZN (24.32%), TSLA (16.18%), BKNG (4.04%), SBUX (3.08%), DASH (2.24%).
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 | XLY |
|---|---|---|
| 2022 | -7.9% | -36.3% |
| 2023 | +10.5% | +39.6% |
| 2024 | +16.6% | +26.5% |
| 2025 | +15.7% | +7.4% |
| 2026 | +15.2% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and XLY good diversifiers for each other?
To a limited degree. At 0.67 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 XLY?
The DGRO/XLY correlation stands at 0.67 on a 3-year window (1 year: 0.47, 5 years: 0.74), computed from weekly returns as of 2026-08-27.
Is XLY a good diversifier for DGRO?
To a limited degree. At 0.67 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 XLY overlap?
5.4% by weight, across 15 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
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Related comparisons
Hubs: DGRO correlations · XLY correlations
