USMV vs XLV: Correlation & Overlap
How closely do iShares MSCI USA Min Vol Factor ETF (USMV) and Health Care Select Sector SPDR Fund (XLV) trade together? Their weekly returns over three years give a correlation of 0.71, which is strong. Looking through to holdings, 12.6% 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 USMV and XLV?
Over the past 3 years, USMV and XLV moved with a correlation of 0.71, which is strong. Recent behaviour matches the longer record: 0.63 over 1 year against 0.71 over 3. Over 5 years the correlation is 0.79, and the annualized covariance of weekly returns is 103.0 %².
Among the 125 assets we track against USMV, XLV ranks #22 by 3-year correlation. The last year tells two different stories: XLV led by 17.4 percentage points, +10.1% for USMV against +27.5% for XLV. The link looks structural: the rolling one-year correlation barely moved, holding between 0.64 and 0.87.
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 XLV: side by side
| USMV (iShares MSCI USA Min Vol Factor ETF) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +10.1% | +27.5% |
| 5-year return | +42.3% | +37.4% |
| Volatility (ann.) | 9.9% | 14.7% |
| Beta vs S&P 500 | 0.51 | 0.42 |
| Max drawdown (3Y) | -9.4% | -17.1% |
| Dividend yield | 1.48% | 1.56% |
| Expense ratio | 0.15% | 0.08% |
| Assets under management | $23.6B | $41.7B |
| 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. 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 USMV and XLV
The two portfolios are largely distinct: 12.6% of the funds' weight sits in the same underlying holdings (20 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in USMV | Weight in XLV |
|---|---|---|
| VRTX | 1.63% | 2.22% |
| JNJ | 1.58% | 10.38% |
| MRK | 1.54% | 6.04% |
| MCK | 1.35% | 1.72% |
| COR | 1.28% | 1.02% |
| GILD | 0.87% | 2.94% |
| LLY | 0.79% | 15.03% |
| ABT | 0.78% | 3.17% |
| ABBV | 0.73% | 7.42% |
| UNH | 0.40% | 5.82% |
| AMGN | 0.37% | 3.80% |
| INCY | 0.48% | 0.34% |
| ELV | 0.30% | 1.40% |
| BSX | 0.24% | 1.14% |
| CI | 0.17% | 1.19% |
Largest positions held only by USMV: MSFT (1.68%), NEM (1.65%), WELL (1.57%), APH (1.54%), MSI (1.51%). Only by XLV: TMO (3.76%), PFE (2.58%), BMY (2.20%), DHR (2.17%), ISRG (2.10%).
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 | USMV | XLV |
|---|---|---|
| 2022 | -9.4% | -2.1% |
| 2023 | +10.3% | +2.1% |
| 2024 | +15.7% | +2.5% |
| 2025 | +7.6% | +14.5% |
| 2026 | +9.1% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are USMV and XLV good diversifiers for each other?
To a limited degree. At 0.71 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between USMV and XLV?
The USMV/XLV correlation stands at 0.71 on a 3-year window (1 year: 0.63, 5 years: 0.79), computed from weekly returns as of 2026-08-27.
Is XLV a good diversifier for USMV?
To a limited degree. At 0.71 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do USMV and XLV overlap?
12.6% by weight, across 20 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-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/usmv-vs-xlv/)
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Hubs: USMV correlations · XLV correlations
