EW vs XLV: Correlation
Edwards Lifesciences (EW) and Health Care Select Sector SPDR Fund (XLV) show a weak relationship: their 3-year correlation of weekly returns is 0.26.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EW and XLV?
Over the past 3 years, EW and XLV moved with a correlation of 0.26, which is weak. Recent behaviour matches the longer record: 0.28 over 1 year against 0.26 over 3. Over 5 years the correlation is 0.41, and the annualized covariance of weekly returns is 122.3 %².
Among the 30 assets we track against EW, XLV ranks #20 by 3-year correlation. The last year tells two different stories: XLV led by 16.3 percentage points, +11.2% for EW against +27.5% for XLV. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.00 to 0.68. Risk is not evenly split, since EW carries 2.1 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.
EW vs XLV: side by side
| EW (Edwards Lifesciences) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +11.2% | +27.5% |
| 5-year return | -23.8% | +37.4% |
| Volatility (ann.) | 31.6% | 14.7% |
| Beta vs S&P 500 | 0.81 | 0.42 |
| Max drawdown (3Y) | -37.5% | -17.1% |
| Market cap | $51.8B | – |
| P/E (trailing) | 54.2 | – |
| Dividend yield | 0.00% | 1.56% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $41.7B |
| Sector / category | Health Care | Sector ETF |
On the fund side, XLV sits in the Health category at State Street Investment Management, with $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield.
Year-by-year returns
| Year | EW | XLV |
|---|---|---|
| 2022 | -42.4% | -2.1% |
| 2023 | +2.2% | +2.1% |
| 2024 | -2.9% | +2.5% |
| 2025 | +15.2% | +14.5% |
| 2026 | +5.5% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLV holds EW at a 0.83% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are EW and XLV good diversifiers for each other?
Reasonably. At 0.26, EW and XLV keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between EW and XLV?
The EW/XLV correlation stands at 0.26 on a 3-year window (1 year: 0.28, 5 years: 0.41), computed from weekly returns as of 2026-08-27.
Is XLV a good diversifier for EW?
Reasonably. At 0.26, EW and XLV keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.26 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ew-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ew-vs-xlv/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: EW correlations · XLV correlations
