IVV vs XLB: Correlation & Overlap
iShares Core S&P 500 ETF (IVV) and Materials Select Sector SPDR Fund (XLB) show a strong relationship: their 3-year correlation of weekly returns is 0.62. Looking through to holdings, 1.8% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IVV and XLB?
On 3 years of weekly data the IVV/XLB correlation comes out at 0.62, strong. The past 12 months show a weaker link (0.33) than the 3-year average (0.62). The 5-year figure is 0.74, and annualized covariance runs at 150.4 %².
Within IVV's tracked universe of 122 assets, XLB comes in at #61 by 3-year correlation. Twelve-month performance is nearly a tie, at +20.7% for IVV and +17.6% for XLB. The relationship is regime-dependent: the rolling one-year correlation swung between 0.36 and 0.87 over the past three years, so this pair behaves very differently depending on the market environment.
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.
IVV vs XLB: side by side
| IVV (iShares Core S&P 500 ETF) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.7% | +17.6% |
| 5-year return | +83.0% | +36.9% |
| Volatility (ann.) | 14.5% | 16.7% |
| Beta vs S&P 500 | 1.00 | 0.72 |
| Max drawdown (3Y) | -18.8% | -23.2% |
| Dividend yield | 1.09% | 1.68% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $869.2B | $8.3B |
| Sector / category | ETF · US Large Cap | Sector ETF |
On the fund side, IVV sits in the Large Blend category at iShares, with $869.2B under management, 503 holdings, a 0.03% expense ratio, a 1.09% trailing dividend yield. XLB is a Natural Resources fund from State Street Investment Management: $8.3B under management, 26 holdings, a 0.08% expense ratio, a 1.68% trailing dividend yield.
Portfolio overlap between IVV and XLB
The two portfolios are largely distinct. Weighing the shared positions, 1.8% of the two funds is identical, spread across 25 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in IVV | Weight in XLB |
|---|---|---|
| LIN | 0.34% | 12.94% |
| NEM | 0.21% | 8.02% |
| FCX | 0.17% | 6.48% |
| SHW | 0.12% | 4.87% |
| ECL | 0.11% | 4.80% |
| APD | 0.10% | 4.71% |
| CRH | 0.10% | 4.12% |
| NUE | 0.09% | 4.28% |
| CTVA | 0.08% | 4.72% |
| VMC | 0.05% | 4.26% |
| STLD | 0.05% | 3.73% |
| MLM | 0.05% | 4.09% |
| PPG | 0.04% | 3.32% |
| SW | 0.04% | 3.39% |
| BALL | 0.03% | 2.22% |
Largest positions held only by IVV: NVDA (7.67%), AAPL (6.96%), MSFT (5.57%), AMZN (3.85%), GOOGL (3.03%). Only by XLB: IXDU6 (0.00%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | IVV | XLB |
|---|---|---|
| 2022 | -18.2% | -12.3% |
| 2023 | +26.3% | +12.5% |
| 2024 | +24.9% | +0.1% |
| 2025 | +17.8% | +9.9% |
| 2026 | +13.7% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IVV and XLB good diversifiers for each other?
To a limited degree. At 0.62 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between IVV and XLB?
Using weekly returns as of 2026-08-27: 0.62 over 3 years, with 0.33 over the last year and 0.74 over 5 years.
Is XLB a good diversifier for IVV?
To a limited degree. At 0.62 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do IVV and XLB overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 1.8% by weight over 25 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ivv-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ivv-vs-xlb/)
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Related comparisons
Hubs: IVV correlations · XLB correlations
