MTUM vs XLV: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI USA Momentum Factor ETF (MTUM) and Health Care Select Sector SPDR Fund (XLV) carry a correlation of 0.22, a weak link. By holdings, the two funds overlap 3.8% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MTUM and XLV?
On 3 years of weekly data the MTUM/XLV correlation comes out at 0.22, weak. Lately the two have drifted apart, with the 1-year correlation at -0.13 versus 0.22 over 3 years. The 5-year figure is 0.44, and annualized covariance runs at 65.2 %².
Within MTUM's tracked universe of 109 assets, XLV comes in at #96 by 3-year correlation. Their 12-month results are close: +25.2% for MTUM against +27.5% for XLV. The relationship is regime-dependent: the rolling one-year correlation swung between -0.12 and 0.75 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.
MTUM vs XLV: side by side
| MTUM (iShares MSCI USA Momentum Factor ETF) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.2% | +27.5% |
| 5-year return | +76.1% | +37.4% |
| Volatility (ann.) | 20.6% | 14.7% |
| Beta vs S&P 500 | 1.25 | 0.42 |
| Max drawdown (3Y) | -21.0% | -17.1% |
| Dividend yield | 0.62% | 1.56% |
| Expense ratio | 0.15% | 0.08% |
| Assets under management | $25.3B | $41.7B |
| Sector / category | ETF · US Style | Sector ETF |
On the fund side, MTUM sits in the Large Blend category at iShares, with $25.3B under management, 126 holdings, a 0.15% expense ratio, a 0.62% 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 MTUM and XLV
The two portfolios are largely distinct. Weighing the shared positions, 3.8% of the two funds is identical, spread across 2 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by MTUM: MU (6.60%), AMD (5.09%), AVGO (4.25%), INTC (3.91%), XOM (3.78%). Only by XLV: LLY (15.03%), ABBV (7.42%), MRK (6.04%), UNH (5.82%), AMGN (3.80%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 2 common positions shown.
Year-by-year returns
| Year | MTUM | XLV |
|---|---|---|
| 2022 | -18.3% | -2.1% |
| 2023 | +9.1% | +2.1% |
| 2024 | +32.9% | +2.5% |
| 2025 | +22.1% | +14.5% |
| 2026 | +21.8% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MTUM and XLV good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.22 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between MTUM and XLV?
Using weekly returns as of 2026-08-27: 0.22 over 3 years, with -0.13 over the last year and 0.44 over 5 years.
Is XLV a good diversifier for MTUM?
Yes, to a useful degree: a correlation of 0.22 leaves real independence between the two, which historically damped combined volatility.
How much do MTUM and XLV overlap?
3.8% by weight, across 2 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
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Hubs: MTUM correlations · XLV correlations
