VIG vs XLI: Correlation & Overlap
How closely do Vanguard Dividend Appreciation ETF (VIG) and Industrial Select Sector SPDR Fund (XLI) trade together? Their weekly returns over three years give a correlation of 0.88, which is very strong. Looking through to holdings, 10.3% 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 VIG and XLI?
On 3 years of weekly data the VIG/XLI correlation comes out at 0.88, very strong, meaning they move nearly in lockstep. The past 12 months show a weaker link (0.77) than the 3-year average (0.88). The 5-year figure is 0.90, and annualized covariance runs at 165.5 %².
Among the 106 assets we track against VIG, XLI ranks #16 by 3-year correlation. Twelve-month performance is nearly a tie, at +17.1% for VIG and +18.3% for XLI. The rolling one-year correlation stayed in a tight band between 0.77 and 0.95 over the past three years, which points to a structural rather than episodic relationship.
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 XLI: side by side
| VIG (Vanguard Dividend Appreciation ETF) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +17.1% | +18.3% |
| 5-year return | +64.0% | +84.0% |
| Volatility (ann.) | 11.9% | 15.7% |
| Beta vs S&P 500 | 0.74 | 0.89 |
| Max drawdown (3Y) | -15.0% | -18.5% |
| Dividend yield | 1.50% | 1.15% |
| Expense ratio | 0.04% | 0.08% |
| Assets under management | $130.9B | $32.9B |
| Sector / category | ETF · Dividend | Sector ETF |
VIG is a Large Blend fund from Vanguard: $130.9B under management, 333 holdings, a 0.04% expense ratio, a 1.50% trailing dividend yield. XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Portfolio overlap between VIG and XLI
The two portfolios are largely distinct. Weighing the shared positions, 10.3% of the two funds is identical, spread across 38 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in VIG | Weight in XLI |
|---|---|---|
| CAT | 1.63% | 6.68% |
| UNP | 0.75% | 3.25% |
| ETN | 0.70% | 2.87% |
| LMT | 0.51% | 2.02% |
| ADP | 0.46% | 1.98% |
| GD | 0.42% | 1.71% |
| CSX | 0.41% | 1.70% |
| CMI | 0.38% | 1.41% |
| EMR | 0.36% | 1.56% |
| WM | 0.36% | 1.44% |
| HON | 0.33% | 1.23% |
| ITW | 0.33% | 1.32% |
| NOC | 0.31% | 1.30% |
| CTAS | 0.30% | 1.23% |
| HONA | 0.28% | 0.92% |
Largest positions held only by VIG: AVGO (4.65%), AAPL (4.47%), MSFT (4.35%), JPM (4.09%), LLY (3.94%). Only by XLI: GE (6.52%), RTX (5.04%), GEV (4.52%), BA (2.95%), UBER (2.82%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-07-31. Top 15 common positions shown.
Year-by-year returns
| Year | VIG | XLI |
|---|---|---|
| 2022 | -9.8% | -5.6% |
| 2023 | +14.5% | +18.1% |
| 2024 | +17.0% | +17.3% |
| 2025 | +14.2% | +19.3% |
| 2026 | +11.6% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VIG and XLI good diversifiers for each other?
Not really. At 0.88, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between VIG and XLI?
The VIG/XLI correlation stands at 0.88 on a 3-year window (1 year: 0.77, 5 years: 0.90), computed from weekly returns as of 2026-08-27.
Is XLI a good diversifier for VIG?
Not really. At 0.88, the two trade almost as one position, and owning both buys little extra protection.
How much do VIG and XLI overlap?
10.3% by weight, across 38 common holdings, based on issuer-disclosed portfolios as of 2026-07-31.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vig-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vig-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: VIG correlations · XLI correlations
