IVV vs XLI: Correlation & Overlap
iShares Core S&P 500 ETF (IVV) and Industrial Select Sector SPDR Fund (XLI) show a very strong relationship: their 3-year correlation of weekly returns is 0.82. The two funds also share 8.6% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IVV and XLI?
On 3 years of weekly data the IVV/XLI correlation comes out at 0.82, very strong, meaning they move nearly in lockstep. The past 12 months show a weaker link (0.60) than the 3-year average (0.82). The 5-year figure is 0.86, and annualized covariance runs at 186.7 %².
Within IVV's tracked universe of 122 assets, XLI comes in at #32 by 3-year correlation. Neither side won the trailing year by much: +20.7% against +18.3%. On a rolling one-year basis the correlation drifted between 0.59 and 0.92, a moderate band.
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 XLI: side by side
| IVV (iShares Core S&P 500 ETF) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.7% | +18.3% |
| 5-year return | +83.0% | +84.0% |
| Volatility (ann.) | 14.5% | 15.7% |
| Beta vs S&P 500 | 1.00 | 0.89 |
| Max drawdown (3Y) | -18.8% | -18.5% |
| Dividend yield | 1.09% | 1.15% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $869.2B | $32.9B |
| 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. XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Portfolio overlap between IVV and XLI
The two portfolios are largely distinct: 8.6% of the funds' weight sits in the same underlying holdings (83 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in IVV | Weight in XLI |
|---|---|---|
| CAT | 0.57% | 6.68% |
| GE | 0.56% | 6.52% |
| RTX | 0.43% | 5.04% |
| GEV | 0.39% | 4.52% |
| UNP | 0.28% | 3.25% |
| BA | 0.25% | 2.95% |
| ETN | 0.25% | 2.87% |
| UBER | 0.24% | 2.82% |
| DE | 0.24% | 2.81% |
| PH | 0.20% | 2.31% |
| LMT | 0.17% | 2.02% |
| ADP | 0.17% | 1.98% |
| HWM | 0.16% | 1.90% |
| GD | 0.15% | 1.71% |
| VRT | 0.15% | 1.79% |
Largest positions held only by IVV: NVDA (7.67%), AAPL (6.96%), MSFT (5.57%), AMZN (3.85%), GOOGL (3.03%). Only by XLI: .
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 | XLI |
|---|---|---|
| 2022 | -18.2% | -5.6% |
| 2023 | +26.3% | +18.1% |
| 2024 | +24.9% | +17.3% |
| 2025 | +17.8% | +19.3% |
| 2026 | +13.7% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IVV and XLI good diversifiers for each other?
Not really. At 0.82, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between IVV and XLI?
The IVV/XLI correlation stands at 0.82 on a 3-year window (1 year: 0.60, 5 years: 0.86), computed from weekly returns as of 2026-08-27.
Is XLI a good diversifier for IVV?
Not really. At 0.82, the two trade almost as one position, and owning both buys little extra protection.
How much do IVV and XLI overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 8.6% by weight over 83 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ivv-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ivv-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IVV correlations · XLI correlations
