IVV vs XLC: Correlation & Overlap
iShares Core S&P 500 ETF (IVV) and Communication Services Select Sector SPDR Fund (XLC) show a very strong relationship: their 3-year correlation of weekly returns is 0.82. By holdings, the two funds overlap 9.6% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IVV and XLC?
Across a 3-year window, the weekly returns of IVV and XLC correlate at 0.82, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.75 over 1 year against 0.82 over 3. Stretching to 5 years gives 0.83, with an annualized covariance of 189.1 %².
Within IVV's tracked universe of 122 assets, XLC comes in at #31 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months IVV outperformed by 19.2 percentage points (+20.7% for IVV against +1.5% for XLC). Across three years, the rolling one-year figure varied moderately, from 0.66 to 0.91.
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 XLC: side by side
| IVV (iShares Core S&P 500 ETF) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.7% | +1.5% |
| 5-year return | +83.0% | +37.5% |
| Volatility (ann.) | 14.5% | 16.0% |
| Beta vs S&P 500 | 1.00 | 0.90 |
| Max drawdown (3Y) | -18.8% | -18.0% |
| Dividend yield | 1.09% | 1.32% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $869.2B | $21.7B |
| Sector / category | ETF · US Large Cap | Sector ETF |
IVV is a Large Blend fund from iShares: $869.2B under management, 503 holdings, a 0.03% expense ratio, a 1.09% trailing dividend yield. On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Portfolio overlap between IVV and XLC
The two portfolios are largely distinct. Weighing the shared positions, 9.6% of the two funds is identical, spread across 24 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in IVV | Weight in XLC |
|---|---|---|
| GOOGL | 3.03% | 10.29% |
| GOOG | 2.42% | 8.22% |
| META | 1.91% | 16.73% |
| NFLX | 0.52% | 4.84% |
| VZ | 0.32% | 4.99% |
| DIS | 0.29% | 4.88% |
| T | 0.27% | 5.20% |
| CMCSA | 0.15% | 4.93% |
| TMUS | 0.13% | 4.53% |
| APP | 0.13% | 1.30% |
| WBD | 0.11% | 4.65% |
| TTWO | 0.06% | 4.14% |
| OMC | 0.04% | 4.52% |
| LYV | 0.04% | 4.39% |
| RDDT | 0.03% | 0.32% |
Largest positions held only by IVV: NVDA (7.67%), AAPL (6.96%), MSFT (5.57%), AMZN (3.85%), AVGO (2.54%). Only by XLC: .
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 | XLC |
|---|---|---|
| 2022 | -18.2% | -37.6% |
| 2023 | +26.3% | +52.8% |
| 2024 | +24.9% | +34.7% |
| 2025 | +17.8% | +23.1% |
| 2026 | +13.7% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IVV and XLC good diversifiers for each other?
No: a correlation of 0.82 means IVV and XLC tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between IVV and XLC?
The IVV/XLC correlation stands at 0.82 on a 3-year window (1 year: 0.75, 5 years: 0.83), computed from weekly returns as of 2026-08-27.
Is XLC a good diversifier for IVV?
No: a correlation of 0.82 means IVV and XLC tend to fall together, which is precisely when diversification is supposed to help.
How much do IVV and XLC overlap?
9.6% by weight, across 24 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ivv-vs-xlc.json
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[](https://www.pairbook.io/pair/ivv-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IVV correlations · XLC correlations
