VRTX vs XLV: Correlation
How closely do Vertex Pharmaceuticals (VRTX) and Health Care Select Sector SPDR Fund (XLV) trade together? Their weekly returns over three years give a correlation of 0.55, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VRTX and XLV?
On 3 years of weekly data the VRTX/XLV correlation comes out at 0.55, moderate. Recent behaviour matches the longer record: 0.59 over 1 year against 0.55 over 3. The 5-year figure is 0.54, and annualized covariance runs at 244.5 %².
Few assets follow VRTX as closely as XLV, which ranks #2 of 31 tracked partners. On 12-month performance VRTX holds a 13.2-point edge, +40.7% against +27.5%. Stability stands out here, with the rolling one-year correlation confined to 0.44 through 0.69. Risk is not evenly split, since VRTX carries 2.1 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.
VRTX vs XLV: side by side
| VRTX (Vertex Pharmaceuticals) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +40.7% | +27.5% |
| 5-year return | +174.5% | +37.4% |
| Volatility (ann.) | 30.3% | 14.7% |
| Beta vs S&P 500 | 0.55 | 0.42 |
| Max drawdown (3Y) | -29.1% | -17.1% |
| Market cap | $138.8B | – |
| P/E (trailing) | 31.9 | – |
| Dividend yield | 0.00% | 1.56% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $41.7B |
| Sector / category | Health Care | Sector ETF |
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.
Year-by-year returns
| Year | VRTX | XLV |
|---|---|---|
| 2022 | +31.5% | -2.1% |
| 2023 | +40.9% | +2.1% |
| 2024 | -1.0% | +2.5% |
| 2025 | +12.6% | +14.5% |
| 2026 | +20.8% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLV holds VRTX at a 2.22% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are VRTX and XLV good diversifiers for each other?
Somewhat, no more. With 0.55 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between VRTX and XLV?
Using weekly returns as of 2026-08-27: 0.55 over 3 years, with 0.59 over the last year and 0.54 over 5 years.
Is XLV a good diversifier for VRTX?
Somewhat, no more. With 0.55 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.55 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vrtx-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vrtx-vs-xlv/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: VRTX correlations · XLV correlations
