VT vs XLC: Correlation & Overlap
Vanguard Total World Stock ETF (VT) and Communication Services Select Sector SPDR Fund (XLC) show a strong relationship: their 3-year correlation of weekly returns is 0.78. The two funds also share 5.7% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VT and XLC?
Across a 3-year window, the weekly returns of VT and XLC correlate at 0.78, strong. Lately the two have drifted apart, with the 1-year correlation at 0.67 versus 0.78 over 3 years. Stretching to 5 years gives 0.80, with an annualized covariance of 172.4 %².
Within VT's tracked universe of 136 assets, XLC comes in at #48 by 3-year correlation. The last year tells two different stories: VT led by 21.2 percentage points, +22.7% for VT against +1.5% for XLC. The rolling one-year correlation moved between 0.61 and 0.91 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.
VT vs XLC: side by side
| VT (Vanguard Total World Stock ETF) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.7% | +1.5% |
| 5-year return | +67.7% | +37.5% |
| Volatility (ann.) | 13.9% | 16.0% |
| Beta vs S&P 500 | 0.92 | 0.90 |
| Max drawdown (3Y) | -16.5% | -18.0% |
| Dividend yield | 1.59% | 1.32% |
| Expense ratio | 0.06% | 0.08% |
| Assets under management | $97.9B | $21.7B |
| Sector / category | ETF · Global | Sector ETF |
VT, Vanguard's Global Large-Stock Blend fund, carries $97.9B under management, 5308 holdings, a 0.06% expense ratio, a 1.59% trailing dividend yield. On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Portfolio overlap between VT and XLC
The two portfolios are largely distinct, with 23 holdings in common adding up to 5.7% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in VT | Weight in XLC |
|---|---|---|
| GOOGL | 1.89% | 10.29% |
| GOOG | 1.49% | 8.22% |
| META | 1.10% | 16.73% |
| NFLX | 0.27% | 4.84% |
| VZ | 0.18% | 4.99% |
| DIS | 0.15% | 4.88% |
| T | 0.15% | 5.20% |
| APP | 0.09% | 1.30% |
| CMCSA | 0.08% | 4.93% |
| TMUS | 0.07% | 4.53% |
| WBD | 0.06% | 4.65% |
| TTWO | 0.04% | 4.14% |
| LYV | 0.03% | 4.39% |
| OMC | 0.02% | 4.52% |
| RDDT | 0.02% | 0.32% |
Largest positions held only by VT: NVDA (4.20%), AAPL (4.00%), MSFT (3.09%), AMZN (2.36%), AVGO (1.62%). Only by XLC: PSKY (0.61%).
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 | VT | XLC |
|---|---|---|
| 2022 | -18.0% | -37.6% |
| 2023 | +22.0% | +52.8% |
| 2024 | +16.5% | +34.7% |
| 2025 | +22.4% | +23.1% |
| 2026 | +15.2% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VT and XLC good diversifiers for each other?
To a limited degree. At 0.78 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between VT and XLC?
The VT/XLC correlation stands at 0.78 on a 3-year window (1 year: 0.67, 5 years: 0.80), computed from weekly returns as of 2026-08-27.
Is XLC a good diversifier for VT?
To a limited degree. At 0.78 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do VT and XLC overlap?
The two funds share 23 holdings amounting to 5.7% of weight, per issuer portfolio files dated 2026-07-31.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vt-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vt-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
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Hubs: VT correlations · XLC correlations
