VOO vs XLI: Correlation & Overlap
How closely do Vanguard S&P 500 ETF (VOO) and Industrial Select Sector SPDR Fund (XLI) trade together? Their weekly returns over three years give a correlation of 0.82, which is very strong. The two funds also share 8.7% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VOO and XLI?
On 3 years of weekly data the VOO/XLI correlation comes out at 0.82, very strong, meaning they move nearly in lockstep. The past 12 months show a weaker link (0.60) than the 3-year average (0.82). The 5-year figure is 0.86, and annualized covariance runs at 184.8 %².
By 3-year correlation, XLI places #36 of the 124 assets tracked against VOO. Neither side won the trailing year by much: +20.6% against +18.3%. On a rolling one-year basis the correlation drifted between 0.59 and 0.92, 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.
VOO vs XLI: side by side
| VOO (Vanguard S&P 500 ETF) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.6% | +18.3% |
| 5-year return | +83.0% | +84.0% |
| Volatility (ann.) | 14.4% | 15.7% |
| Beta vs S&P 500 | 0.99 | 0.89 |
| Max drawdown (3Y) | -18.7% | -18.5% |
| Dividend yield | 1.07% | 1.15% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $1,686.9B | $32.9B |
| Sector / category | ETF · US Large Cap | Sector ETF |
VOO is a Large Blend fund from Vanguard: $1,686.9B under management, 503 holdings, a 0.03% expense ratio, a 1.07% 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 VOO and XLI
The two portfolios are largely distinct. Weighing the shared positions, 8.7% of the two funds is identical, spread across 82 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in VOO | Weight in XLI |
|---|---|---|
| GE | 0.58% | 6.52% |
| CAT | 0.58% | 6.68% |
| RTX | 0.45% | 5.04% |
| GEV | 0.41% | 4.52% |
| UNP | 0.27% | 3.25% |
| BA | 0.26% | 2.95% |
| ETN | 0.25% | 2.87% |
| DE | 0.23% | 2.81% |
| UBER | 0.22% | 2.82% |
| PH | 0.19% | 2.31% |
| LMT | 0.18% | 2.02% |
| HWM | 0.18% | 1.90% |
| ADP | 0.17% | 1.98% |
| TT | 0.16% | 1.81% |
| PWR | 0.16% | 1.63% |
Largest positions held only by VOO: NVDA (7.56%), AAPL (7.05%), MSFT (5.37%), AMZN (4.13%), GOOGL (3.25%). Only by XLI: FERG (0.81%).
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 | VOO | XLI |
|---|---|---|
| 2022 | -18.2% | -5.6% |
| 2023 | +26.3% | +18.1% |
| 2024 | +25.0% | +17.3% |
| 2025 | +17.8% | +19.3% |
| 2026 | +13.7% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VOO and XLI good diversifiers for each other?
Not really. At 0.82, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between VOO and XLI?
As of 2026-08-27, the correlation of weekly returns between VOO and XLI is 0.82 over 3 years, 0.60 over 1 year and 0.86 over 5 years.
Is XLI a good diversifier for VOO?
Not really. At 0.82, the two trade almost as one position, and owning both buys little extra protection.
How much do VOO and XLI overlap?
Per the issuers' own portfolio disclosures (2026-07-31), the overlap is 8.7% by weight over 82 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/voo-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/voo-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: VOO correlations · XLI correlations
