VIG vs XLP: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard Dividend Appreciation ETF (VIG) and Consumer Staples Select Sector SPDR Fund (XLP) carry a correlation of 0.54, a moderate link. The two funds also share 9.3% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VIG and XLP?
On 3 years of weekly data the VIG/XLP correlation comes out at 0.54, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.43 versus 0.54 over 3 years. The 5-year figure is 0.70, and annualized covariance runs at 72.1 %².
By 3-year correlation, XLP places #70 of the 106 assets tracked against VIG. The trailing year gives VIG the advantage: +17.1% versus +8.3%, a 8.8-point spread. On a rolling one-year basis the correlation drifted between 0.42 and 0.82, 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 XLP: side by side
| VIG (Vanguard Dividend Appreciation ETF) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +17.1% | +8.3% |
| 5-year return | +64.0% | +34.7% |
| Volatility (ann.) | 11.9% | 11.1% |
| Beta vs S&P 500 | 0.74 | 0.23 |
| Max drawdown (3Y) | -15.0% | -9.7% |
| Dividend yield | 1.50% | 2.58% |
| Expense ratio | 0.04% | 0.08% |
| Assets under management | $130.9B | $14.6B |
| Sector / category | ETF · Dividend | Sector ETF |
VIG, Vanguard's Large Blend fund, carries $130.9B under management, 333 holdings, a 0.04% expense ratio, a 1.50% trailing dividend yield. On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Portfolio overlap between VIG and XLP
The two portfolios are largely distinct. Weighing the shared positions, 9.3% of the two funds is identical, spread across 16 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in VIG | Weight in XLP |
|---|---|---|
| WMT | 2.12% | 9.62% |
| COST | 1.83% | 8.92% |
| KO | 1.47% | 7.34% |
| PG | 1.46% | 7.10% |
| PEP | 0.83% | 4.39% |
| MDLZ | 0.35% | 4.37% |
| CL | 0.32% | 4.56% |
| SYY | 0.18% | 2.50% |
| ADM | 0.17% | 2.42% |
| CASY | 0.14% | 1.87% |
| CHD | 0.10% | 1.53% |
| KR | 0.10% | 2.08% |
| STZ | 0.08% | 1.18% |
| TSN | 0.07% | 1.00% |
| MKC | 0.06% | 0.88% |
Largest positions held only by VIG: AVGO (4.65%), AAPL (4.47%), MSFT (4.35%), JPM (4.09%), LLY (3.94%). Only by XLP: PM (6.36%), TGT (4.67%), MNST (4.28%), MO (4.21%), KDP (2.75%).
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 | XLP |
|---|---|---|
| 2022 | -9.8% | -0.8% |
| 2023 | +14.5% | -0.8% |
| 2024 | +17.0% | +12.2% |
| 2025 | +14.2% | +1.5% |
| 2026 | +11.6% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VIG and XLP good diversifiers for each other?
To a limited degree. At 0.54 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 VIG and XLP?
As of 2026-08-27, the correlation of weekly returns between VIG and XLP is 0.54 over 3 years, 0.43 over 1 year and 0.70 over 5 years.
Is XLP a good diversifier for VIG?
To a limited degree. At 0.54 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 VIG and XLP overlap?
9.3% by weight, across 16 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-xlp.json
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[](https://www.pairbook.io/pair/vig-vs-xlp/)
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Hubs: VIG correlations · XLP correlations
