DIA vs XLC: Correlation & Overlap
SPDR Dow Jones Industrial Average ETF (DIA) and Communication Services Select Sector SPDR Fund (XLC) show a strong relationship: their 3-year correlation of weekly returns is 0.69. Looking through to holdings, 5.0% 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 DIA and XLC?
Over the past 3 years, DIA and XLC moved with a correlation of 0.69, which is strong. Lately the two have drifted apart, with the 1-year correlation at 0.51 versus 0.69 over 3 years. Over 5 years the correlation is 0.70, and the annualized covariance of weekly returns is 143.7 %².
Within DIA's tracked universe of 116 assets, XLC comes in at #43 by 3-year correlation. The last year tells two different stories: DIA led by 17.7 percentage points, +19.2% for DIA against +1.5% for XLC. This link changes with the market regime, having swung between 0.39 and 0.89 on a rolling one-year basis.
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 XLC: side by side
| DIA (SPDR Dow Jones Industrial Average ETF) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +19.2% | +1.5% |
| 5-year return | +64.8% | +37.5% |
| Volatility (ann.) | 13.0% | 16.0% |
| Beta vs S&P 500 | 0.79 | 0.90 |
| Max drawdown (3Y) | -16.0% | -18.0% |
| Dividend yield | 1.37% | 1.32% |
| Expense ratio | 0.16% | 0.08% |
| Assets under management | $45.2B | $21.7B |
| Sector / category | ETF · US Large Cap | Sector ETF |
On the fund side, DIA sits in the Large Value category at State Street Investment Management, with $45.2B under management, 30 holdings, a 0.16% expense ratio, a 1.37% trailing dividend yield. On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Portfolio overlap between DIA and XLC
The two portfolios are largely distinct. Weighing the shared positions, 5.0% of the two funds is identical, spread across 2 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by DIA: GS (11.56%), CAT (9.13%), MSFT (5.51%), AMGN (4.89%), UNH (4.45%). Only by XLC: META (16.73%), GOOG (8.22%), T (5.20%), VZ (4.99%), CMCSA (4.93%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 2 common positions shown.
Year-by-year returns
| Year | DIA | XLC |
|---|---|---|
| 2022 | -7.0% | -37.6% |
| 2023 | +16.0% | +52.8% |
| 2024 | +14.8% | +34.7% |
| 2025 | +14.7% | +23.1% |
| 2026 | +12.3% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DIA and XLC good diversifiers for each other?
To a limited degree. At 0.69 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 DIA and XLC?
The DIA/XLC correlation stands at 0.69 on a 3-year window (1 year: 0.51, 5 years: 0.70), computed from weekly returns as of 2026-08-27.
Is XLC a good diversifier for DIA?
To a limited degree. At 0.69 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 DIA and XLC overlap?
The two funds share 2 holdings amounting to 5.0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dia-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/dia-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: DIA correlations · XLC correlations
