DIA vs XLB: Correlation & Overlap
How closely do SPDR Dow Jones Industrial Average ETF (DIA) and Materials Select Sector SPDR Fund (XLB) trade together? Their weekly returns over three years give a correlation of 0.73, which is strong. The two funds also share 3.9% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DIA and XLB?
Over the past 3 years, DIA and XLB moved with a correlation of 0.73, which is strong. Lately the two have drifted apart, with the 1-year correlation at 0.54 versus 0.73 over 3 years. Over 5 years the correlation is 0.79, and the annualized covariance of weekly returns is 160.5 %².
By 3-year correlation, XLB places #34 of the 116 assets tracked against DIA. Their 12-month results are close: +19.2% for DIA against +17.6% for XLB. The rolling one-year correlation moved between 0.57 and 0.85 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.
DIA vs XLB: side by side
| DIA (SPDR Dow Jones Industrial Average ETF) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +19.2% | +17.6% |
| 5-year return | +64.8% | +36.9% |
| Volatility (ann.) | 13.0% | 16.7% |
| Beta vs S&P 500 | 0.79 | 0.72 |
| Max drawdown (3Y) | -16.0% | -23.2% |
| Dividend yield | 1.37% | 1.68% |
| Expense ratio | 0.16% | 0.08% |
| Assets under management | $45.2B | $8.3B |
| Sector / category | ETF · US Large Cap | Sector ETF |
DIA is a Large Value fund from State Street Investment Management: $45.2B under management, 30 holdings, a 0.16% expense ratio, a 1.37% trailing dividend yield. XLB is a Natural Resources fund from State Street Investment Management: $8.3B under management, 26 holdings, a 0.08% expense ratio, a 1.68% trailing dividend yield.
Portfolio overlap between DIA and XLB
The two portfolios are largely distinct, with 1 holdings in common adding up to 3.9% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in DIA | Weight in XLB |
|---|---|---|
| SHW | 3.87% | 4.87% |
Largest positions held only by DIA: GS (11.56%), CAT (9.13%), MSFT (5.51%), AMGN (4.89%), UNH (4.45%). Only by XLB: LIN (12.94%), NEM (8.02%), FCX (6.48%), ECL (4.80%), CTVA (4.72%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 1 common positions shown.
Year-by-year returns
| Year | DIA | XLB |
|---|---|---|
| 2022 | -7.0% | -12.3% |
| 2023 | +16.0% | +12.5% |
| 2024 | +14.8% | +0.1% |
| 2025 | +14.7% | +9.9% |
| 2026 | +12.3% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DIA and XLB good diversifiers for each other?
Somewhat, no more. With 0.73 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between DIA and XLB?
The DIA/XLB correlation stands at 0.73 on a 3-year window (1 year: 0.54, 5 years: 0.79), computed from weekly returns as of 2026-08-27.
Is XLB a good diversifier for DIA?
Somewhat, no more. With 0.73 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do DIA and XLB overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 3.9% by weight over 1 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dia-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/dia-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: DIA correlations · XLB correlations
