IVV vs XLF: Correlation & Overlap
How closely do iShares Core S&P 500 ETF (IVV) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.75, which is strong. The two funds also share 12.4% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IVV and XLF?
Over the past 3 years, IVV and XLF moved with a correlation of 0.75, which is strong. The link has loosened recently: the 1-year correlation (0.59) runs below the 3-year figure (0.75). Over 5 years the correlation is 0.79, and the annualized covariance of weekly returns is 175.8 %².
By 3-year correlation, XLF places #42 of the 122 assets tracked against IVV. The trailing year gives IVV the advantage: +20.7% versus +9.3%, a 11.4-point spread. The rolling one-year correlation moved between 0.54 and 0.85 over the past three years, a moderate range.
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 XLF: side by side
| IVV (iShares Core S&P 500 ETF) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.7% | +9.3% |
| 5-year return | +83.0% | +64.2% |
| Volatility (ann.) | 14.5% | 16.2% |
| Beta vs S&P 500 | 1.00 | 0.84 |
| Max drawdown (3Y) | -18.8% | -15.5% |
| Dividend yield | 1.09% | 1.42% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $869.2B | $57.9B |
| 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. XLF is a Financial fund from State Street Investment Management: $57.9B under management, 77 holdings, a 0.08% expense ratio, a 1.42% trailing dividend yield.
Portfolio overlap between IVV and XLF
The two portfolios are largely distinct. Weighing the shared positions, 12.4% of the two funds is identical, spread across 76 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in IVV | Weight in XLF |
|---|---|---|
| JPM | 1.44% | 11.61% |
| BRK.B | 1.40% | 11.25% |
| V | 0.96% | 7.74% |
| MA | 0.73% | 5.87% |
| BAC | 0.61% | 4.94% |
| GS | 0.46% | 3.73% |
| MS | 0.39% | 3.12% |
| WFC | 0.39% | 3.17% |
| C | 0.34% | 2.77% |
| SCHW | 0.27% | 2.17% |
| AXP | 0.27% | 2.17% |
| BLK | 0.26% | 2.06% |
| SPGI | 0.20% | 1.61% |
| PGR | 0.20% | 1.58% |
| COF | 0.20% | 1.64% |
Largest positions held only by IVV: NVDA (7.67%), AAPL (6.96%), MSFT (5.57%), AMZN (3.85%), GOOGL (3.03%). Only by XLF: IXAU6 (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 | XLF |
|---|---|---|
| 2022 | -18.2% | -10.6% |
| 2023 | +26.3% | +12.0% |
| 2024 | +24.9% | +30.6% |
| 2025 | +17.8% | +14.9% |
| 2026 | +13.7% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IVV and XLF good diversifiers for each other?
Only partially. A correlation of 0.75 means IVV and XLF share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between IVV and XLF?
As of 2026-08-27, the correlation of weekly returns between IVV and XLF is 0.75 over 3 years, 0.59 over 1 year and 0.79 over 5 years.
Is XLF a good diversifier for IVV?
Only partially. A correlation of 0.75 means IVV and XLF share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do IVV and XLF overlap?
12.4% by weight, across 76 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-xlf.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ivv-vs-xlf/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IVV correlations · XLF correlations
