DIA vs XLY: Correlation & Overlap
How closely do SPDR Dow Jones Industrial Average ETF (DIA) and Consumer Discretionary Select Sector SPDR Fund (XLY) trade together? Their weekly returns over three years give a correlation of 0.76, which is strong. The two funds also share 10.0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DIA and XLY?
Across a 3-year window, the weekly returns of DIA and XLY correlate at 0.76, strong. Little has changed lately, as the 1-year reading of 0.72 lands near the 3-year figure. Stretching to 5 years gives 0.79, with an annualized covariance of 196.1 %².
By 3-year correlation, XLY places #22 of the 116 assets tracked against DIA. Their recent paths diverged sharply: over the last 12 months DIA outperformed by 19.3 percentage points (+19.2% for DIA against -0.1% for XLY). The link looks structural: the rolling one-year correlation barely moved, holding between 0.65 and 0.87. Risk is not evenly split, since XLY carries 1.5 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 XLY: side by side
| DIA (SPDR Dow Jones Industrial Average ETF) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +19.2% | -0.1% |
| 5-year return | +64.8% | +31.8% |
| Volatility (ann.) | 13.0% | 19.7% |
| Beta vs S&P 500 | 0.79 | 1.15 |
| Max drawdown (3Y) | -16.0% | -26.0% |
| Dividend yield | 1.37% | 0.78% |
| Expense ratio | 0.16% | 0.08% |
| Assets under management | $45.2B | $22.5B |
| 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. XLY is a Consumer Cyclical fund from State Street Investment Management: $22.5B under management, 47 holdings, a 0.08% expense ratio, a 0.78% trailing dividend yield.
Portfolio overlap between DIA and XLY
The two portfolios are largely distinct. Weighing the shared positions, 10.0% of the two funds is identical, spread across 4 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 XLY: TSLA (16.18%), BKNG (4.04%), TJX (3.55%), SBUX (3.08%), LOW (2.94%).
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 | XLY |
|---|---|---|
| 2022 | -7.0% | -36.3% |
| 2023 | +16.0% | +39.6% |
| 2024 | +14.8% | +26.5% |
| 2025 | +14.7% | +7.4% |
| 2026 | +12.3% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DIA and XLY good diversifiers for each other?
Somewhat, no more. With 0.76 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between DIA and XLY?
Using weekly returns as of 2026-08-27: 0.76 over 3 years, with 0.72 over the last year and 0.79 over 5 years.
Is XLY a good diversifier for DIA?
Somewhat, no more. With 0.76 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do DIA and XLY overlap?
The two funds share 4 holdings amounting to 10.0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dia-vs-xly.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/dia-vs-xly/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: DIA correlations · XLY correlations
