IVV vs XLV: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Core S&P 500 ETF (IVV) and Health Care Select Sector SPDR Fund (XLV) carry a correlation of 0.41, a moderate link. The two funds also share 9.4% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IVV and XLV?
On 3 years of weekly data the IVV/XLV correlation comes out at 0.41, moderate. The link has loosened recently: the 1-year correlation (0.08) runs below the 3-year figure (0.41). The 5-year figure is 0.58, and annualized covariance runs at 87.8 %².
By 3-year correlation, XLV places #105 of the 122 assets tracked against IVV. On 12-month performance XLV holds a 6.8-point edge, +20.7% against +27.5%. This link changes with the market regime, having swung between 0.13 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 XLV: side by side
| IVV (iShares Core S&P 500 ETF) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.7% | +27.5% |
| 5-year return | +83.0% | +37.4% |
| Volatility (ann.) | 14.5% | 14.7% |
| Beta vs S&P 500 | 1.00 | 0.42 |
| Max drawdown (3Y) | -18.8% | -17.1% |
| Dividend yield | 1.09% | 1.56% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $869.2B | $41.7B |
| 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. On the fund side, XLV sits in the Health category at State Street Investment Management, with $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield.
Portfolio overlap between IVV and XLV
The two portfolios are largely distinct, with 59 holdings in common adding up to 9.4% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in IVV | Weight in XLV |
|---|---|---|
| LLY | 1.42% | 15.03% |
| JNJ | 0.98% | 10.38% |
| ABBV | 0.70% | 7.42% |
| MRK | 0.57% | 6.04% |
| UNH | 0.55% | 5.82% |
| AMGN | 0.36% | 3.80% |
| TMO | 0.36% | 3.76% |
| ABT | 0.30% | 3.17% |
| GILD | 0.28% | 2.94% |
| PFE | 0.24% | 2.58% |
| BMY | 0.21% | 2.20% |
| VRTX | 0.21% | 2.22% |
| DHR | 0.20% | 2.17% |
| ISRG | 0.20% | 2.10% |
| CVS | 0.18% | 1.92% |
Largest positions held only by IVV: NVDA (7.67%), AAPL (6.96%), MSFT (5.57%), AMZN (3.85%), GOOGL (3.03%). Only by XLV: IXCU6 (0.03%), 2602335D (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 | XLV |
|---|---|---|
| 2022 | -18.2% | -2.1% |
| 2023 | +26.3% | +2.1% |
| 2024 | +24.9% | +2.5% |
| 2025 | +17.8% | +14.5% |
| 2026 | +13.7% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IVV and XLV good diversifiers for each other?
A fair diversifier. At 0.41, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between IVV and XLV?
As of 2026-08-27, the correlation of weekly returns between IVV and XLV is 0.41 over 3 years, 0.08 over 1 year and 0.58 over 5 years.
Is XLV a good diversifier for IVV?
A fair diversifier. At 0.41, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do IVV and XLV overlap?
The two funds share 59 holdings amounting to 9.4% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ivv-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ivv-vs-xlv/)
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Hubs: IVV correlations · XLV correlations
