DIA vs XLE: Correlation & Overlap
Measured on weekly returns over the past three years, SPDR Dow Jones Industrial Average ETF (DIA) and Energy Select Sector SPDR Fund (XLE) carry a correlation of 0.22, a weak link. The two funds also share 2.2% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DIA and XLE?
Over the past 3 years, DIA and XLE moved with a correlation of 0.22, which is weak. Lately the two have drifted apart, with the 1-year correlation at -0.30 versus 0.22 over 3 years. Over 5 years the correlation is 0.34, and the annualized covariance of weekly returns is 66.0 %².
Within DIA's tracked universe of 116 assets, XLE comes in at #106 by 3-year correlation. The last year tells two different stories: XLE led by 24.8 percentage points, +19.2% for DIA against +44.0% for XLE. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.27 to 0.57. Risk is not evenly split, since XLE carries 1.8 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.
DIA vs XLE: side by side
| DIA (SPDR Dow Jones Industrial Average ETF) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +19.2% | +44.0% |
| 5-year return | +64.8% | +206.7% |
| Volatility (ann.) | 13.0% | 23.1% |
| Beta vs S&P 500 | 0.79 | 0.27 |
| Max drawdown (3Y) | -16.0% | -20.1% |
| Dividend yield | 1.37% | 2.55% |
| Expense ratio | 0.16% | 0.08% |
| Assets under management | $45.2B | $39.2B |
| Sector / category | ETF · US Large Cap | Sector ETF |
DIA, State Street Investment Management's Large Value fund, carries $45.2B under management, 30 holdings, a 0.16% expense ratio, a 1.37% trailing dividend yield. XLE is an Equity Energy fund from State Street Investment Management: $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% trailing dividend yield.
Portfolio overlap between DIA and XLE
The two portfolios are largely distinct. Weighing the shared positions, 2.2% of the two funds is identical, spread across 1 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in DIA | Weight in XLE |
|---|---|---|
| CVX | 2.22% | 14.84% |
Largest positions held only by DIA: GS (11.56%), CAT (9.13%), MSFT (5.51%), AMGN (4.89%), UNH (4.45%). Only by XLE: XOM (20.03%), COP (6.30%), MPC (5.40%), PSX (5.37%), VLO (5.05%).
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 | XLE |
|---|---|---|
| 2022 | -7.0% | +64.3% |
| 2023 | +16.0% | -0.6% |
| 2024 | +14.8% | +5.6% |
| 2025 | +14.7% | +7.9% |
| 2026 | +12.3% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DIA and XLE good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.22 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between DIA and XLE?
The DIA/XLE correlation stands at 0.22 on a 3-year window (1 year: -0.30, 5 years: 0.34), computed from weekly returns as of 2026-08-27.
Is XLE a good diversifier for DIA?
Yes, to a useful degree: a correlation of 0.22 leaves real independence between the two, which historically damped combined volatility.
How much do DIA and XLE overlap?
The two funds share 1 holdings amounting to 2.2% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dia-vs-xle.json
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Related comparisons
Hubs: DIA correlations · XLE correlations
