DGRO vs XYL: Correlation
Measured on weekly returns over the past three years, iShares Core Dividend Growth ETF (DGRO) and Xylem Inc. (XYL) carry a correlation of 0.63, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and XYL?
Over the past 3 years, DGRO and XYL moved with a correlation of 0.63, which is strong. The past 12 months show a weaker link (0.40) than the 3-year average (0.63). Over 5 years the correlation is 0.66, and the annualized covariance of weekly returns is 171.7 %².
Among the 138 assets we track against DGRO, XYL ranks #61 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months DGRO outperformed by 42.1 percentage points (+21.0% for DGRO against -21.1% for XYL). The relationship is regime-dependent: the rolling one-year correlation swung between 0.24 and 0.83 over the past three years, so this pair behaves very differently depending on the market environment. Risk is not evenly split, since XYL carries 2.1 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 XYL: side by side
| DGRO (iShares Core Dividend Growth ETF) | XYL (Xylem Inc.) | |
|---|---|---|
| 1-year return | +21.0% | -21.1% |
| 5-year return | +67.9% | -12.5% |
| Volatility (ann.) | 11.4% | 23.9% |
| Beta vs S&P 500 | 0.65 | 0.96 |
| Max drawdown (3Y) | -14.0% | -30.0% |
| Market cap | – | $26.3B |
| P/E (trailing) | – | 26.8 |
| Dividend yield | 1.89% | 1.47% |
| Expense ratio | 0.08% | – |
| Assets under management | $42.8B | – |
| Sector / category | ETF · Dividend | Industrials |
DGRO, iShares's Large Value fund, carries $42.8B under management, 383 holdings, a 0.08% expense ratio, a 1.89% trailing dividend yield.
Year-by-year returns
| Year | DGRO | XYL |
|---|---|---|
| 2022 | -7.9% | -6.6% |
| 2023 | +10.5% | +4.8% |
| 2024 | +16.6% | +2.6% |
| 2025 | +15.7% | +18.8% |
| 2026 | +15.2% | -16.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that DGRO holds XYL at a 0.09% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are DGRO and XYL good diversifiers for each other?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between DGRO and XYL?
The DGRO/XYL correlation stands at 0.63 on a 3-year window (1 year: 0.40, 5 years: 0.66), computed from weekly returns as of 2026-08-27.
Is XYL a good diversifier for DGRO?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.63 mean?
A reading of 0.63 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dgro-vs-xyl.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/dgro-vs-xyl/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: DGRO correlations · XYL correlations
