IVV vs XLY: Correlation & Overlap
iShares Core S&P 500 ETF (IVV) and Consumer Discretionary Select Sector SPDR Fund (XLY) show a very strong relationship: their 3-year correlation of weekly returns is 0.84. By holdings, the two funds overlap 9.2% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IVV and XLY?
Across a 3-year window, the weekly returns of IVV and XLY correlate at 0.84, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.80) sits close to the 3-year figure. Stretching to 5 years gives 0.87, with an annualized covariance of 241.2 %².
By 3-year correlation, XLY places #27 of the 122 assets tracked against IVV. Correlation aside, the last 12 months split them widely, with IVV ahead by 20.8 points (+20.7% versus -0.1%). The rolling one-year correlation stayed in a tight band between 0.81 and 0.90 over the past three years, which points to a structural rather than episodic relationship.
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 XLY: side by side
| IVV (iShares Core S&P 500 ETF) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.7% | -0.1% |
| 5-year return | +83.0% | +31.8% |
| Volatility (ann.) | 14.5% | 19.7% |
| Beta vs S&P 500 | 1.00 | 1.15 |
| Max drawdown (3Y) | -18.8% | -26.0% |
| Dividend yield | 1.09% | 0.78% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $869.2B | $22.5B |
| 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. XLY is a Consumer Cyclical fund from State Street Investment Management: $22.5B under management, 47 holdings, a 0.08% expense ratio, a 0.78% trailing dividend yield.
Portfolio overlap between IVV and XLY
The two portfolios are largely distinct. Weighing the shared positions, 9.2% of the two funds is identical, spread across 47 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in IVV | Weight in XLY |
|---|---|---|
| AMZN | 3.85% | 24.32% |
| TSLA | 1.47% | 16.18% |
| HD | 0.50% | 5.54% |
| MCD | 0.29% | 4.11% |
| BKNG | 0.24% | 4.04% |
| TJX | 0.23% | 3.55% |
| SBUX | 0.19% | 3.08% |
| LOW | 0.18% | 2.94% |
| DASH | 0.14% | 2.24% |
| GM | 0.12% | 1.94% |
| MAR | 0.12% | 1.96% |
| ABNB | 0.12% | 1.96% |
| ROST | 0.12% | 1.90% |
| ORLY | 0.11% | 1.85% |
| HLT | 0.11% | 1.89% |
Largest positions held only by IVV: NVDA (7.67%), AAPL (6.96%), MSFT (5.57%), GOOGL (3.03%), AVGO (2.54%). Only by XLY: .
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 | XLY |
|---|---|---|
| 2022 | -18.2% | -36.3% |
| 2023 | +26.3% | +39.6% |
| 2024 | +24.9% | +26.5% |
| 2025 | +17.8% | +7.4% |
| 2026 | +13.7% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IVV and XLY good diversifiers for each other?
No. With a correlation of 0.84, IVV and XLY move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between IVV and XLY?
Using weekly returns as of 2026-08-27: 0.84 over 3 years, with 0.80 over the last year and 0.87 over 5 years.
Is XLY a good diversifier for IVV?
No. With a correlation of 0.84, IVV and XLY move nearly in lockstep, so holding both adds very little diversification.
How much do IVV and XLY overlap?
The two funds share 47 holdings amounting to 9.2% of weight, per issuer portfolio files dated 2026-08-26.
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Hubs: IVV correlations · XLY correlations
