DLTR vs XLP: Correlation
Dollar Tree (DLTR) and Consumer Staples Select Sector SPDR Fund (XLP) show a weak relationship: their 3-year correlation of weekly returns is 0.23.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DLTR and XLP?
On 3 years of weekly data the DLTR/XLP correlation comes out at 0.23, weak. Recent behaviour matches the longer record: 0.16 over 1 year against 0.23 over 3. The 5-year figure is 0.37, and annualized covariance runs at 95.0 %².
Within DLTR's tracked universe of 32 assets, XLP comes in at #22 by 3-year correlation. Their 12-month results are close: +12.5% for DLTR against +8.3% for XLP. This link changes with the market regime, having swung between 0.06 and 0.60 on a rolling one-year basis. Note the risk asymmetry: DLTR runs 3.4 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
DLTR vs XLP: side by side
| DLTR (Dollar Tree) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +12.5% | +8.3% |
| 5-year return | +39.7% | +34.7% |
| Volatility (ann.) | 37.3% | 11.1% |
| Beta vs S&P 500 | 0.70 | 0.23 |
| Max drawdown (3Y) | -59.2% | -9.7% |
| Market cap | $23.8B | – |
| P/E (trailing) | 21.2 | – |
| Dividend yield | 0.00% | 2.58% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $14.6B |
| Sector / category | Consumer Staples | Sector ETF |
On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Year-by-year returns
| Year | DLTR | XLP |
|---|---|---|
| 2022 | +0.7% | -0.8% |
| 2023 | +0.4% | -0.8% |
| 2024 | -47.2% | +12.2% |
| 2025 | +64.1% | +1.5% |
| 2026 | +3.2% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
DLTR represents 1.5% of XLP's portfolio, so part of any move in XLP is DLTR itself, and the correlation between them is partly mechanical.
Are DLTR and XLP good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.23 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between DLTR and XLP?
The DLTR/XLP correlation stands at 0.23 on a 3-year window (1 year: 0.16, 5 years: 0.37), computed from weekly returns as of 2026-08-27.
Is XLP a good diversifier for DLTR?
Yes, to a useful degree: a correlation of 0.23 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.23 mean?
On the −1 to +1 scale, 0.23 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
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[](https://www.pairbook.io/pair/dltr-vs-xlp/)
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Related comparisons
Hubs: DLTR correlations · XLP correlations
