VIG vs XYL: Correlation
Vanguard Dividend Appreciation ETF (VIG) and Xylem Inc. (XYL) show a strong relationship: their 3-year correlation of weekly returns is 0.64.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VIG and XYL?
On 3 years of weekly data the VIG/XYL correlation comes out at 0.64, strong. Lately the two have drifted apart, with the 1-year correlation at 0.41 versus 0.64 over 3 years. The 5-year figure is 0.68, and annualized covariance runs at 180.8 %².
Among the 106 assets we track against VIG, XYL ranks #46 by 3-year correlation. The last year tells two different stories: VIG led by 38.2 percentage points, +17.1% for VIG against -21.1% for XYL. The relationship is regime-dependent: the rolling one-year correlation swung between 0.26 and 0.82 over the past three years, so this pair behaves very differently depending on the market environment. Risk is not evenly split, since XYL carries 2.0 times the volatility of the other side.
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 XYL: side by side
| VIG (Vanguard Dividend Appreciation ETF) | XYL (Xylem Inc.) | |
|---|---|---|
| 1-year return | +17.1% | -21.1% |
| 5-year return | +64.0% | -12.5% |
| Volatility (ann.) | 11.9% | 23.9% |
| Beta vs S&P 500 | 0.74 | 0.96 |
| Max drawdown (3Y) | -15.0% | -30.0% |
| Market cap | – | $26.3B |
| P/E (trailing) | – | 26.8 |
| Dividend yield | 1.50% | 1.47% |
| Expense ratio | 0.04% | – |
| Assets under management | $130.9B | – |
| Sector / category | ETF · Dividend | Industrials |
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.
Year-by-year returns
| Year | VIG | XYL |
|---|---|---|
| 2022 | -9.8% | -6.6% |
| 2023 | +14.5% | +4.8% |
| 2024 | +17.0% | +2.6% |
| 2025 | +14.2% | +18.8% |
| 2026 | +11.6% | -16.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
XYL represents 0.12% of VIG's portfolio, so part of any move in VIG is XYL itself, and the correlation between them is partly mechanical.
Are VIG and XYL good diversifiers for each other?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between VIG and XYL?
The VIG/XYL correlation stands at 0.64 on a 3-year window (1 year: 0.41, 5 years: 0.68), computed from weekly returns as of 2026-08-27.
Is XYL a good diversifier for VIG?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.64 mean?
A reading of 0.64 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vig-vs-xyl.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vig-vs-xyl/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VIG correlations · XYL correlations
