VIG vs XLRE: Correlation & Overlap
Vanguard Dividend Appreciation ETF (VIG) and Real Estate Select Sector SPDR Fund (XLRE) show a strong relationship: their 3-year correlation of weekly returns is 0.65. 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 XLRE?
On 3 years of weekly data the VIG/XLRE correlation comes out at 0.65, strong. Lately the two have drifted apart, with the 1-year correlation at 0.54 versus 0.65 over 3 years. The 5-year figure is 0.76, and annualized covariance runs at 129.8 %².
Among the 106 assets we track against VIG, XLRE ranks #42 by 3-year correlation. The trailing year gives VIG the advantage: +17.1% versus +9.5%, a 7.6-point spread. The rolling one-year correlation moved between 0.54 and 0.86 over the past three years, a moderate range.
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 XLRE: side by side
| VIG (Vanguard Dividend Appreciation ETF) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +17.1% | +9.5% |
| 5-year return | +64.0% | +11.4% |
| Volatility (ann.) | 11.9% | 16.7% |
| Beta vs S&P 500 | 0.74 | 0.57 |
| Max drawdown (3Y) | -15.0% | -16.6% |
| Dividend yield | 1.50% | 3.12% |
| Expense ratio | 0.04% | 0.08% |
| Assets under management | $130.9B | $8.6B |
| 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. On the fund side, XLRE sits in the Real Estate category at State Street Investment Management, with $8.6B under management, 31 holdings, a 0.08% expense ratio, a 3.12% trailing dividend yield.
Portfolio overlap between VIG and XLRE
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 XLRE: WELL (11.43%), PLD (9.06%), EQIX (7.14%), AMT (5.49%), DLR (5.01%).
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 | XLRE |
|---|---|---|
| 2022 | -9.8% | -26.2% |
| 2023 | +14.5% | +12.4% |
| 2024 | +17.0% | +5.1% |
| 2025 | +14.2% | +2.6% |
| 2026 | +11.6% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VIG and XLRE good diversifiers for each other?
Only partially. A correlation of 0.65 means VIG and XLRE 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 XLRE?
The VIG/XLRE correlation stands at 0.65 on a 3-year window (1 year: 0.54, 5 years: 0.76), computed from weekly returns as of 2026-08-27.
Is XLRE a good diversifier for VIG?
Only partially. A correlation of 0.65 means VIG and XLRE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do VIG and XLRE overlap?
Per the issuers' own portfolio disclosures (2026-07-31), the overlap is 0% by weight over 0 common positions.
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Related comparisons
Hubs: VIG correlations · XLRE correlations
