MDY vs XLV: Correlation & Overlap
How closely do SPDR S&P MidCap 400 ETF (MDY) and Health Care Select Sector SPDR Fund (XLV) trade together? Their weekly returns over three years give a correlation of 0.51, which is moderate. Looking through to holdings, 0% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MDY and XLV?
Across a 3-year window, the weekly returns of MDY and XLV correlate at 0.51, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.31 versus 0.51 over 3 years. Stretching to 5 years gives 0.57, with an annualized covariance of 123.1 %².
Among the 359 assets we track against MDY, XLV ranks #289 by 3-year correlation. On 12-month performance XLV holds a 9.2-point edge, +18.3% against +27.5%. The rolling one-year correlation moved between 0.39 and 0.66 over the past three years, a moderate range.
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.
MDY vs XLV: side by side
| MDY (SPDR S&P MidCap 400 ETF) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +18.3% | +27.5% |
| 5-year return | +47.5% | +37.4% |
| Volatility (ann.) | 16.5% | 14.7% |
| Beta vs S&P 500 | 0.91 | 0.42 |
| Max drawdown (3Y) | -24.0% | -17.1% |
| Dividend yield | 1.02% | 1.56% |
| Expense ratio | 0.23% | 0.08% |
| Assets under management | $26.5B | $41.7B |
| Sector / category | ETF · US Small & Mid Cap | Sector ETF |
On the fund side, MDY sits in the Mid-Cap Blend category at State Street Investment Management, with $26.5B under management, 400 holdings, a 0.23% expense ratio, a 1.02% 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 MDY and XLV
The two portfolios are largely distinct: 0% of the funds' weight sits in the same underlying holdings (0 common positions). Correlation tells you they move together; overlap tells you why.
Largest positions held only by MDY: TWLO (0.95%), P (0.94%), ILMN (0.93%), FTI (0.83%), ATI (0.80%). Only by XLV: LLY (15.03%), JNJ (10.38%), ABBV (7.42%), MRK (6.04%), UNH (5.82%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | MDY | XLV |
|---|---|---|
| 2022 | -13.3% | -2.1% |
| 2023 | +16.1% | +2.1% |
| 2024 | +13.6% | +2.5% |
| 2025 | +7.2% | +14.5% |
| 2026 | +16.4% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MDY and XLV good diversifiers for each other?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between MDY and XLV?
Using weekly returns as of 2026-08-27: 0.51 over 3 years, with 0.31 over the last year and 0.57 over 5 years.
Is XLV a good diversifier for MDY?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do MDY and XLV overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mdy-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mdy-vs-xlv/)
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Hubs: MDY correlations · XLV correlations
