VOO vs XLV: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard S&P 500 ETF (VOO) and Health Care Select Sector SPDR Fund (XLV) carry a correlation of 0.41, a moderate link. Looking through to holdings, 9.1% 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 VOO and XLV?
Across a 3-year window, the weekly returns of VOO and XLV correlate at 0.41, moderate. The past 12 months show a weaker link (0.09) than the 3-year average (0.41). Stretching to 5 years gives 0.58, with an annualized covariance of 87.6 %².
Within VOO's tracked universe of 124 assets, XLV comes in at #109 by 3-year correlation. On 12-month performance XLV holds a 6.9-point edge, +20.6% against +27.5%. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.14 to 0.68.
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 XLV: side by side
| VOO (Vanguard S&P 500 ETF) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.6% | +27.5% |
| 5-year return | +83.0% | +37.4% |
| Volatility (ann.) | 14.4% | 14.7% |
| Beta vs S&P 500 | 0.99 | 0.42 |
| Max drawdown (3Y) | -18.7% | -17.1% |
| Dividend yield | 1.07% | 1.56% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $1,686.9B | $41.7B |
| Sector / category | ETF · US Large Cap | Sector ETF |
On the fund side, VOO sits in the Large Blend category at Vanguard, with $1,686.9B under management, 503 holdings, a 0.03% expense ratio, a 1.07% trailing dividend yield. On the fund side, XLV sits in the Health category at State Street Investment Management, with $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield.
Portfolio overlap between VOO and XLV
The two portfolios are largely distinct. Weighing the shared positions, 9.1% of the two funds is identical, spread across 59 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in VOO | Weight in XLV |
|---|---|---|
| LLY | 1.41% | 15.03% |
| JNJ | 0.96% | 10.38% |
| ABBV | 0.69% | 7.42% |
| UNH | 0.58% | 5.82% |
| MRK | 0.50% | 6.04% |
| TMO | 0.33% | 3.76% |
| AMGN | 0.32% | 3.80% |
| ABT | 0.29% | 3.17% |
| GILD | 0.25% | 2.94% |
| PFE | 0.22% | 2.58% |
| BMY | 0.21% | 2.20% |
| CVS | 0.21% | 1.92% |
| ISRG | 0.19% | 2.10% |
| DHR | 0.19% | 2.17% |
| VRTX | 0.19% | 2.22% |
Largest positions held only by VOO: NVDA (7.56%), AAPL (7.05%), MSFT (5.37%), AMZN (4.13%), GOOGL (3.25%). Only by XLV: IXCU6 (0.03%), 2602335D (0.00%).
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 | XLV |
|---|---|---|
| 2022 | -18.2% | -2.1% |
| 2023 | +26.3% | +2.1% |
| 2024 | +25.0% | +2.5% |
| 2025 | +17.8% | +14.5% |
| 2026 | +13.7% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VOO and XLV good diversifiers for each other?
A fair diversifier. At 0.41, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between VOO and XLV?
Using weekly returns as of 2026-08-27: 0.41 over 3 years, with 0.09 over the last year and 0.58 over 5 years.
Is XLV a good diversifier for VOO?
A fair diversifier. At 0.41, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do VOO and XLV overlap?
9.1% by weight, across 59 common holdings, based on issuer-disclosed portfolios as of 2026-07-31.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/voo-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/voo-vs-xlv/)
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Hubs: VOO correlations · XLV correlations
