IVV vs XLE: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Core S&P 500 ETF (IVV) and Energy Select Sector SPDR Fund (XLE) carry a correlation of 0.17, a weak link. Looking through to holdings, 3.4% 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 XLE?
Over the past 3 years, IVV and XLE moved with a correlation of 0.17, which is weak. Lately the two have drifted apart, with the 1-year correlation at -0.40 versus 0.17 over 3 years. Over 5 years the correlation is 0.28, and the annualized covariance of weekly returns is 56.9 %².
By 3-year correlation, XLE places #112 of the 122 assets tracked against IVV. Their recent paths diverged sharply: over the last 12 months XLE outperformed by 23.3 percentage points (+20.7% for IVV against +44.0% for XLE). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.42 to 0.55. One caveat on sizing: XLE is 1.6 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 XLE: side by side
| IVV (iShares Core S&P 500 ETF) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.7% | +44.0% |
| 5-year return | +83.0% | +206.7% |
| Volatility (ann.) | 14.5% | 23.1% |
| Beta vs S&P 500 | 1.00 | 0.27 |
| Max drawdown (3Y) | -18.8% | -20.1% |
| Dividend yield | 1.09% | 2.55% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $869.2B | $39.2B |
| 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. XLE is an Equity Energy fund from State Street Investment Management: $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% trailing dividend yield.
Portfolio overlap between IVV and XLE
The two portfolios are largely distinct, with 21 holdings in common adding up to 3.4% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in IVV | Weight in XLE |
|---|---|---|
| XOM | 0.99% | 20.03% |
| CVX | 0.57% | 14.84% |
| COP | 0.24% | 6.30% |
| MPC | 0.16% | 5.40% |
| VLO | 0.16% | 5.05% |
| PSX | 0.15% | 5.37% |
| WMB | 0.14% | 3.84% |
| SLB | 0.12% | 4.46% |
| EOG | 0.12% | 4.24% |
| TRGP | 0.10% | 3.74% |
| KMI | 0.09% | 3.72% |
| OKE | 0.09% | 3.55% |
| BKR | 0.09% | 3.65% |
| DVN | 0.08% | 3.20% |
| OXY | 0.06% | 2.52% |
Largest positions held only by IVV: NVDA (7.67%), AAPL (6.96%), MSFT (5.57%), AMZN (3.85%), GOOGL (3.03%). Only by XLE: IXPU6 (0.01%).
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 | XLE |
|---|---|---|
| 2022 | -18.2% | +64.3% |
| 2023 | +26.3% | -0.6% |
| 2024 | +24.9% | +5.6% |
| 2025 | +17.8% | +7.9% |
| 2026 | +13.7% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IVV and XLE good diversifiers for each other?
Yes. With a correlation of 0.17, IVV and XLE have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between IVV and XLE?
As of 2026-08-27, the correlation of weekly returns between IVV and XLE is 0.17 over 3 years, -0.40 over 1 year and 0.28 over 5 years.
Is XLE a good diversifier for IVV?
Yes. With a correlation of 0.17, IVV and XLE have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
How much do IVV and XLE overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 3.4% by weight over 21 common positions.
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Hubs: IVV correlations · XLE correlations
