IVV vs XLP: Correlation & Overlap
How closely do iShares Core S&P 500 ETF (IVV) and Consumer Staples Select Sector SPDR Fund (XLP) trade together? Their weekly returns over three years give a correlation of 0.30, which is moderate. The two funds also share 4.6% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IVV and XLP?
Over the past 3 years, IVV and XLP moved with a correlation of 0.30, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.01 versus 0.30 over 3 years. Over 5 years the correlation is 0.53, and the annualized covariance of weekly returns is 48.7 %².
Among the 122 assets we track against IVV, XLP ranks #110 by 3-year correlation. On 12-month performance IVV holds a 12.4-point edge, +20.7% against +8.3%. This link changes with the market regime, having swung between 0.02 and 0.68 on a rolling one-year basis.
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 XLP: side by side
| IVV (iShares Core S&P 500 ETF) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.7% | +8.3% |
| 5-year return | +83.0% | +34.7% |
| Volatility (ann.) | 14.5% | 11.1% |
| Beta vs S&P 500 | 1.00 | 0.23 |
| Max drawdown (3Y) | -18.8% | -9.7% |
| Dividend yield | 1.09% | 2.58% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $869.2B | $14.6B |
| Sector / category | ETF · US Large Cap | Sector ETF |
IVV, iShares's Large Blend fund, carries $869.2B under management, 503 holdings, a 0.03% expense ratio, a 1.09% trailing dividend yield. On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Portfolio overlap between IVV and XLP
The two portfolios are largely distinct. Weighing the shared positions, 4.6% of the two funds is identical, spread across 34 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in IVV | Weight in XLP |
|---|---|---|
| WMT | 0.69% | 9.62% |
| COST | 0.64% | 8.92% |
| KO | 0.53% | 7.34% |
| PG | 0.51% | 7.10% |
| PM | 0.46% | 6.36% |
| PEP | 0.29% | 4.39% |
| MO | 0.17% | 4.21% |
| MDLZ | 0.12% | 4.37% |
| TGT | 0.11% | 4.67% |
| CL | 0.11% | 4.56% |
| MNST | 0.10% | 4.28% |
| KDP | 0.07% | 2.75% |
| ADM | 0.06% | 2.42% |
| KMB | 0.06% | 2.30% |
| KVUE | 0.06% | 2.32% |
Largest positions held only by IVV: NVDA (7.67%), AAPL (6.96%), MSFT (5.57%), AMZN (3.85%), GOOGL (3.03%). Only by XLP: IXRU6 (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 | XLP |
|---|---|---|
| 2022 | -18.2% | -0.8% |
| 2023 | +26.3% | -0.8% |
| 2024 | +24.9% | +12.2% |
| 2025 | +17.8% | +1.5% |
| 2026 | +13.7% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IVV and XLP good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.30 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between IVV and XLP?
The IVV/XLP correlation stands at 0.30 on a 3-year window (1 year: 0.01, 5 years: 0.53), computed from weekly returns as of 2026-08-27.
Is XLP a good diversifier for IVV?
Yes, to a useful degree: a correlation of 0.30 leaves real independence between the two, which historically damped combined volatility.
How much do IVV and XLP overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 4.6% by weight over 34 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ivv-vs-xlp.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ivv-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IVV correlations · XLP correlations
