VIG vs XLC: Correlation & Overlap
Vanguard Dividend Appreciation ETF (VIG) and Communication Services Select Sector SPDR Fund (XLC) show a strong relationship: their 3-year correlation of weekly returns is 0.71. The two funds also share 0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VIG and XLC?
On 3 years of weekly data the VIG/XLC correlation comes out at 0.71, strong. The link has loosened recently: the 1-year correlation (0.52) runs below the 3-year figure (0.71). The 5-year figure is 0.72, and annualized covariance runs at 133.7 %².
Within VIG's tracked universe of 106 assets, XLC comes in at #31 by 3-year correlation. The last year tells two different stories: VIG led by 15.6 percentage points, +17.1% for VIG against +1.5% for XLC. On a rolling one-year basis the correlation drifted between 0.46 and 0.87, a moderate band.
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.
VIG vs XLC: side by side
| VIG (Vanguard Dividend Appreciation ETF) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +17.1% | +1.5% |
| 5-year return | +64.0% | +37.5% |
| Volatility (ann.) | 11.9% | 16.0% |
| Beta vs S&P 500 | 0.74 | 0.90 |
| Max drawdown (3Y) | -15.0% | -18.0% |
| Dividend yield | 1.50% | 1.32% |
| Expense ratio | 0.04% | 0.08% |
| Assets under management | $130.9B | $21.7B |
| Sector / category | ETF · Dividend | Sector ETF |
On the fund side, VIG sits in the Large Blend category at Vanguard, with $130.9B under management, 333 holdings, a 0.04% expense ratio, a 1.50% trailing dividend yield. On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Portfolio overlap between VIG and XLC
The two portfolios are largely distinct, with 0 holdings in common adding up to 0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by VIG: AVGO (4.65%), AAPL (4.47%), MSFT (4.35%), JPM (4.09%), LLY (3.94%). Only by XLC: META (16.73%), GOOGL (10.29%), GOOG (8.22%), T (5.20%), VZ (4.99%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-07-31.
Year-by-year returns
| Year | VIG | XLC |
|---|---|---|
| 2022 | -9.8% | -37.6% |
| 2023 | +14.5% | +52.8% |
| 2024 | +17.0% | +34.7% |
| 2025 | +14.2% | +23.1% |
| 2026 | +11.6% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VIG and XLC good diversifiers for each other?
Only partially. A correlation of 0.71 means VIG and XLC share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between VIG and XLC?
The VIG/XLC correlation stands at 0.71 on a 3-year window (1 year: 0.52, 5 years: 0.72), computed from weekly returns as of 2026-08-27.
Is XLC a good diversifier for VIG?
Only partially. A correlation of 0.71 means VIG and XLC share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do VIG and XLC overlap?
Per the issuers' own portfolio disclosures (2026-07-31), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vig-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vig-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VIG correlations · XLC correlations
