IVV vs XLU: Correlation & Overlap
iShares Core S&P 500 ETF (IVV) and Utilities Select Sector SPDR Fund (XLU) show a weak relationship: their 3-year correlation of weekly returns is 0.23. By holdings, the two funds overlap 2.1% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IVV and XLU?
Across a 3-year window, the weekly returns of IVV and XLU correlate at 0.23, weak. The past 12 months show a weaker link (-0.10) than the 3-year average (0.23). Stretching to 5 years gives 0.42, with an annualized covariance of 53.4 %².
Among the 122 assets we track against IVV, XLU ranks #111 by 3-year correlation. Correlation aside, the last 12 months split them widely, with IVV ahead by 16.6 points (+20.7% versus +4.1%). The relationship is regime-dependent: the rolling one-year correlation swung between -0.14 and 0.57 over the past three years, so this pair behaves very differently depending on the market environment.
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 XLU: side by side
| IVV (iShares Core S&P 500 ETF) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.7% | +4.1% |
| 5-year return | +83.0% | +46.3% |
| Volatility (ann.) | 14.5% | 15.8% |
| Beta vs S&P 500 | 1.00 | 0.26 |
| Max drawdown (3Y) | -18.8% | -13.1% |
| Dividend yield | 1.09% | 2.70% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $869.2B | $23.1B |
| 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. XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Portfolio overlap between IVV and XLU
The two portfolios are largely distinct. Weighing the shared positions, 2.1% of the two funds is identical, spread across 31 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in IVV | Weight in XLU |
|---|---|---|
| NEE | 0.27% | 12.94% |
| SO | 0.15% | 7.45% |
| DUK | 0.14% | 7.00% |
| CEG | 0.14% | 6.58% |
| AEP | 0.10% | 4.94% |
| D | 0.09% | 4.33% |
| SRE | 0.08% | 4.11% |
| VST | 0.07% | 3.27% |
| XEL | 0.07% | 3.57% |
| EXC | 0.07% | 3.35% |
| ETR | 0.07% | 3.62% |
| PEG | 0.06% | 2.72% |
| ED | 0.06% | 2.93% |
| PCG | 0.06% | 2.96% |
| AEE | 0.05% | 2.20% |
Largest positions held only by IVV: NVDA (7.67%), AAPL (6.96%), MSFT (5.57%), AMZN (3.85%), GOOGL (3.03%). Only by XLU: .
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 | XLU |
|---|---|---|
| 2022 | -18.2% | +1.4% |
| 2023 | +26.3% | -7.2% |
| 2024 | +24.9% | +23.3% |
| 2025 | +17.8% | +16.0% |
| 2026 | +13.7% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IVV and XLU good diversifiers for each other?
A fair diversifier. At 0.23, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between IVV and XLU?
The IVV/XLU correlation stands at 0.23 on a 3-year window (1 year: -0.10, 5 years: 0.42), computed from weekly returns as of 2026-08-27.
Is XLU a good diversifier for IVV?
A fair diversifier. At 0.23, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do IVV and XLU overlap?
2.1% by weight, across 31 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-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ivv-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
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Hubs: IVV correlations · XLU correlations
