SPYV vs XLB: Correlation & Overlap
Measured on weekly returns over the past three years, SPDR Portfolio S&P 500 Value ETF (SPYV) and Materials Select Sector SPDR Fund (XLB) carry a correlation of 0.80, a very strong link. The two funds also share 3.6% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPYV and XLB?
On 3 years of weekly data the SPYV/XLB correlation comes out at 0.80, very strong, meaning they move nearly in lockstep. Lately the two have drifted apart, with the 1-year correlation at 0.61 versus 0.80 over 3 years. The 5-year figure is 0.84, and annualized covariance runs at 162.6 %².
Among the 148 assets we track against SPYV, XLB ranks #24 by 3-year correlation. Their 12-month results are close: +18.5% for SPYV against +17.6% for XLB. The rolling one-year correlation moved between 0.63 and 0.90 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.
SPYV vs XLB: side by side
| SPYV (SPDR Portfolio S&P 500 Value ETF) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +18.5% | +17.6% |
| 5-year return | +73.5% | +36.9% |
| Volatility (ann.) | 12.1% | 16.7% |
| Beta vs S&P 500 | 0.70 | 0.72 |
| Max drawdown (3Y) | -17.5% | -23.2% |
| Dividend yield | 1.69% | 1.68% |
| Expense ratio | 0.04% | 0.08% |
| Assets under management | $36.2B | $8.3B |
| Sector / category | ETF · US Style | Sector ETF |
On the fund side, SPYV sits in the Large Value category at State Street Investment Management, with $36.2B under management, 438 holdings, a 0.04% expense ratio, a 1.69% trailing dividend yield. XLB is a Natural Resources fund from State Street Investment Management: $8.3B under management, 26 holdings, a 0.08% expense ratio, a 1.68% trailing dividend yield.
Portfolio overlap between SPYV and XLB
The two portfolios are largely distinct, with 24 holdings in common adding up to 3.6% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in SPYV | Weight in XLB |
|---|---|---|
| LIN | 0.75% | 12.94% |
| FCX | 0.37% | 6.48% |
| SHW | 0.26% | 4.87% |
| ECL | 0.24% | 4.80% |
| APD | 0.23% | 4.71% |
| CRH | 0.21% | 4.12% |
| NUE | 0.19% | 4.28% |
| CTVA | 0.18% | 4.72% |
| VMC | 0.12% | 4.26% |
| STLD | 0.11% | 3.73% |
| MLM | 0.11% | 4.09% |
| SW | 0.09% | 3.39% |
| PPG | 0.08% | 3.32% |
| IFF | 0.07% | 2.90% |
| IP | 0.07% | 2.86% |
Largest positions held only by SPYV: AAPL (7.58%), AMZN (3.95%), XOM (2.16%), WMT (1.51%), INTC (1.44%). Only by XLB: NEM (8.02%), IXDU6 (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 | SPYV | XLB |
|---|---|---|
| 2022 | -5.3% | -12.3% |
| 2023 | +22.2% | +12.5% |
| 2024 | +12.2% | +0.1% |
| 2025 | +13.2% | +9.9% |
| 2026 | +12.7% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPYV and XLB good diversifiers for each other?
No. With a correlation of 0.80, SPYV and XLB move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between SPYV and XLB?
The SPYV/XLB correlation stands at 0.80 on a 3-year window (1 year: 0.61, 5 years: 0.84), computed from weekly returns as of 2026-08-27.
Is XLB a good diversifier for SPYV?
No. With a correlation of 0.80, SPYV and XLB move nearly in lockstep, so holding both adds very little diversification.
How much do SPYV and XLB overlap?
The two funds share 24 holdings amounting to 3.6% of weight, per issuer portfolio files dated 2026-08-26.
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Related comparisons
Hubs: SPYV correlations · XLB correlations
