DIA vs XLI: Correlation & Overlap
Measured on weekly returns over the past three years, SPDR Dow Jones Industrial Average ETF (DIA) and Industrial Select Sector SPDR Fund (XLI) carry a correlation of 0.88, a very strong link. By holdings, the two funds overlap 11.9% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DIA and XLI?
Over the past 3 years, DIA and XLI moved with a correlation of 0.88, which is very strong, meaning they move nearly in lockstep. Lately the two have drifted apart, with the 1-year correlation at 0.77 versus 0.88 over 3 years. Over 5 years the correlation is 0.90, and the annualized covariance of weekly returns is 180.8 %².
By 3-year correlation, XLI places #14 of the 116 assets tracked against DIA. Their 12-month results are close: +19.2% for DIA against +18.3% for XLI. Stability stands out here, with the rolling one-year correlation confined to 0.78 through 0.95.
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 XLI: side by side
| DIA (SPDR Dow Jones Industrial Average ETF) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +19.2% | +18.3% |
| 5-year return | +64.8% | +84.0% |
| Volatility (ann.) | 13.0% | 15.7% |
| Beta vs S&P 500 | 0.79 | 0.89 |
| Max drawdown (3Y) | -16.0% | -18.5% |
| Dividend yield | 1.37% | 1.15% |
| Expense ratio | 0.16% | 0.08% |
| Assets under management | $45.2B | $32.9B |
| 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. XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Portfolio overlap between DIA and XLI
The two portfolios are largely distinct, with 4 holdings in common adding up to 11.9% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by DIA: GS (11.56%), MSFT (5.51%), AMGN (4.89%), UNH (4.45%), V (4.26%). Only by XLI: GE (6.52%), RTX (5.04%), GEV (4.52%), UNP (3.25%), ETN (2.87%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 4 common positions shown.
Year-by-year returns
| Year | DIA | XLI |
|---|---|---|
| 2022 | -7.0% | -5.6% |
| 2023 | +16.0% | +18.1% |
| 2024 | +14.8% | +17.3% |
| 2025 | +14.7% | +19.3% |
| 2026 | +12.3% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DIA and XLI good diversifiers for each other?
No. With a correlation of 0.88, DIA and XLI move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between DIA and XLI?
Using weekly returns as of 2026-08-27: 0.88 over 3 years, with 0.77 over the last year and 0.90 over 5 years.
Is XLI a good diversifier for DIA?
No. With a correlation of 0.88, DIA and XLI move nearly in lockstep, so holding both adds very little diversification.
How much do DIA and XLI overlap?
The two funds share 4 holdings amounting to 11.9% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dia-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/dia-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: DIA correlations · XLI correlations
