DIA vs XLF: Correlation & Overlap
How closely do SPDR Dow Jones Industrial Average ETF (DIA) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.87, which is very strong. The two funds also share 15.1% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DIA and XLF?
On 3 years of weekly data the DIA/XLF correlation comes out at 0.87, very strong, meaning they move nearly in lockstep. The link has loosened recently: the 1-year correlation (0.73) runs below the 3-year figure (0.87). The 5-year figure is 0.88, and annualized covariance runs at 183.3 %².
By 3-year correlation, XLF places #16 of the 116 assets tracked against DIA. The trailing year gives DIA the advantage: +19.2% versus +9.3%, a 9.9-point spread. Stability stands out here, with the rolling one-year correlation confined to 0.74 through 0.92.
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 XLF: side by side
| DIA (SPDR Dow Jones Industrial Average ETF) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +19.2% | +9.3% |
| 5-year return | +64.8% | +64.2% |
| Volatility (ann.) | 13.0% | 16.2% |
| Beta vs S&P 500 | 0.79 | 0.84 |
| Max drawdown (3Y) | -16.0% | -15.5% |
| Dividend yield | 1.37% | 1.42% |
| Expense ratio | 0.16% | 0.08% |
| Assets under management | $45.2B | $57.9B |
| 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. XLF is a Financial fund from State Street Investment Management: $57.9B under management, 77 holdings, a 0.08% expense ratio, a 1.42% trailing dividend yield.
Portfolio overlap between DIA and XLF
The two portfolios partially overlap. Weighing the shared positions, 15.1% of the two funds is identical, spread across 5 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in DIA | Weight in XLF |
|---|---|---|
| V | 4.26% | 7.74% |
| JPM | 3.96% | 11.61% |
| GS | 11.56% | 3.73% |
| AXP | 3.73% | 2.17% |
| TRV | 4.12% | 0.96% |
Largest positions held only by DIA: CAT (9.13%), MSFT (5.51%), AMGN (4.89%), UNH (4.45%), SHW (3.87%). Only by XLF: BRK.B (11.25%), MA (5.87%), BAC (4.94%), WFC (3.17%), MS (3.12%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 5 common positions shown.
Year-by-year returns
| Year | DIA | XLF |
|---|---|---|
| 2022 | -7.0% | -10.6% |
| 2023 | +16.0% | +12.0% |
| 2024 | +14.8% | +30.6% |
| 2025 | +14.7% | +14.9% |
| 2026 | +12.3% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DIA and XLF good diversifiers for each other?
No. With a correlation of 0.87, DIA and XLF move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between DIA and XLF?
Using weekly returns as of 2026-08-27: 0.87 over 3 years, with 0.73 over the last year and 0.88 over 5 years.
Is XLF a good diversifier for DIA?
No. With a correlation of 0.87, DIA and XLF move nearly in lockstep, so holding both adds very little diversification.
How much do DIA and XLF overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 15.1% by weight over 5 common positions.
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