USMV vs XLU: Correlation & Overlap
iShares MSCI USA Min Vol Factor ETF (USMV) and Utilities Select Sector SPDR Fund (XLU) show a moderate relationship: their 3-year correlation of weekly returns is 0.45. By holdings, the two funds overlap 6.6% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are USMV and XLU?
Across a 3-year window, the weekly returns of USMV and XLU correlate at 0.45, moderate. The link has loosened recently: the 1-year correlation (0.24) runs below the 3-year figure (0.45). Stretching to 5 years gives 0.63, with an annualized covariance of 70.7 %².
By 3-year correlation, XLU places #84 of the 125 assets tracked against USMV. The trailing year gives USMV the advantage: +10.1% versus +4.1%, a 6.0-point spread. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.24 to 0.75. Note the risk asymmetry: XLU runs 1.6 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
USMV vs XLU: side by side
| USMV (iShares MSCI USA Min Vol Factor ETF) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +10.1% | +4.1% |
| 5-year return | +42.3% | +46.3% |
| Volatility (ann.) | 9.9% | 15.8% |
| Beta vs S&P 500 | 0.51 | 0.26 |
| Max drawdown (3Y) | -9.4% | -13.1% |
| Dividend yield | 1.48% | 2.70% |
| Expense ratio | 0.15% | 0.08% |
| Assets under management | $23.6B | $23.1B |
| Sector / category | ETF · US Style | Sector ETF |
USMV is a Large Blend fund from iShares: $23.6B under management, 164 holdings, a 0.15% expense ratio, a 1.48% trailing dividend yield. XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Portfolio overlap between USMV and XLU
The two portfolios are largely distinct. Weighing the shared positions, 6.6% of the two funds is identical, spread across 13 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in USMV | Weight in XLU |
|---|---|---|
| DUK | 1.37% | 7.00% |
| SO | 1.33% | 7.45% |
| ED | 1.19% | 2.93% |
| WEC | 0.78% | 2.58% |
| XEL | 0.48% | 3.57% |
| AEP | 0.46% | 4.94% |
| AEE | 0.26% | 2.20% |
| D | 0.25% | 4.33% |
| CMS | 0.18% | 1.58% |
| NEE | 0.11% | 12.94% |
| ATO | 0.06% | 2.08% |
| AWK | 0.05% | 1.98% |
| PPL | 0.05% | 1.94% |
Largest positions held only by USMV: MSFT (1.68%), NEM (1.65%), VRTX (1.63%), JNJ (1.58%), WELL (1.57%). Only by XLU: CEG (6.58%), SRE (4.11%), ETR (3.62%), EXC (3.35%), VST (3.27%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 13 common positions shown.
Year-by-year returns
| Year | USMV | XLU |
|---|---|---|
| 2022 | -9.4% | +1.4% |
| 2023 | +10.3% | -7.2% |
| 2024 | +15.7% | +23.3% |
| 2025 | +7.6% | +16.0% |
| 2026 | +9.1% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are USMV and XLU good diversifiers for each other?
A fair diversifier. At 0.45, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between USMV and XLU?
As of 2026-08-27, the correlation of weekly returns between USMV and XLU is 0.45 over 3 years, 0.24 over 1 year and 0.63 over 5 years.
Is XLU a good diversifier for USMV?
A fair diversifier. At 0.45, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do USMV and XLU overlap?
6.6% by weight, across 13 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/usmv-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/usmv-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: USMV correlations · XLU correlations
