SPY vs XLV: Correlation & Overlap
Measured on weekly returns over the past three years, SPDR S&P 500 ETF Trust (SPY) 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 SPY and XLV?
Over the past 3 years, SPY and XLV moved with a correlation of 0.41, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.08 versus 0.41 over 3 years. Over 5 years the correlation is 0.58, and the annualized covariance of weekly returns is 88.1 %².
Among the 4755 assets we track against SPY, XLV ranks #1099 by 3-year correlation. Over the last 12 months XLV came out ahead by 6.9 percentage points (+20.6% against +27.5%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.13 to 0.68.
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.
SPY vs XLV: side by side
| SPY (SPDR S&P 500 ETF Trust) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.6% | +27.5% |
| 5-year return | +82.4% | +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 | 1.01% | 1.56% |
| Expense ratio | 0.09% | 0.08% |
| Assets under management | $795.3B | $41.7B |
| Sector / category | ETF · US Large Cap | Sector ETF |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% 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 SPY and XLV
The two portfolios are largely distinct. Weighing the shared positions, 9.4% of the two funds is identical, spread across 60 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in SPY | 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% |
| VRTX | 0.21% | 2.22% |
| BMY | 0.21% | 2.20% |
| DHR | 0.20% | 2.17% |
| ISRG | 0.20% | 2.10% |
| CVS | 0.18% | 1.92% |
Largest positions held only by SPY: NVDA (7.68%), AAPL (6.96%), MSFT (5.58%), AMZN (3.85%), GOOGL (3.03%). Only by XLV: IXCU6 (0.03%).
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 | SPY | XLV |
|---|---|---|
| 2022 | -18.2% | -2.1% |
| 2023 | +26.2% | +2.1% |
| 2024 | +24.9% | +2.5% |
| 2025 | +17.7% | +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 SPY and XLV good diversifiers for each other?
Reasonably. At 0.41, SPY and XLV keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between SPY and XLV?
As of 2026-08-27, the correlation of weekly returns between SPY 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 SPY?
Reasonably. At 0.41, SPY and XLV keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do SPY and XLV overlap?
9.4% by weight, across 60 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/spy-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/spy-vs-xlv/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: SPY correlations · XLV correlations
