VT vs XLE: Correlation & Overlap
Vanguard Total World Stock ETF (VT) and Energy Select Sector SPDR Fund (XLE) show a weak relationship: their 3-year correlation of weekly returns is 0.17. Looking through to holdings, 2.0% 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 VT and XLE?
Across a 3-year window, the weekly returns of VT and XLE correlate at 0.17, weak. Lately the two have drifted apart, with the 1-year correlation at -0.40 versus 0.17 over 3 years. Stretching to 5 years gives 0.28, with an annualized covariance of 54.6 %².
By 3-year correlation, XLE places #126 of the 136 assets tracked against VT. Their recent paths diverged sharply: over the last 12 months XLE outperformed by 21.3 percentage points (+22.7% for VT against +44.0% for XLE). The relationship is regime-dependent: the rolling one-year correlation swung between -0.42 and 0.56 over the past three years, so this pair behaves very differently depending on the market environment. Risk is not evenly split, since XLE carries 1.7 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.
VT vs XLE: side by side
| VT (Vanguard Total World Stock ETF) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.7% | +44.0% |
| 5-year return | +67.7% | +206.7% |
| Volatility (ann.) | 13.9% | 23.1% |
| Beta vs S&P 500 | 0.92 | 0.27 |
| Max drawdown (3Y) | -16.5% | -20.1% |
| Dividend yield | 1.59% | 2.55% |
| Expense ratio | 0.06% | 0.08% |
| Assets under management | $97.9B | $39.2B |
| Sector / category | ETF · Global | Sector ETF |
VT is a Global Large-Stock Blend fund from Vanguard: $97.9B under management, 5308 holdings, a 0.06% expense ratio, a 1.59% trailing dividend yield. XLE is an Equity Energy fund from State Street Investment Management: $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% trailing dividend yield.
Portfolio overlap between VT and XLE
The two portfolios are largely distinct. Weighing the shared positions, 2.0% of the two funds is identical, spread across 21 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in VT | Weight in XLE |
|---|---|---|
| XOM | 0.58% | 20.03% |
| CVX | 0.33% | 14.84% |
| COP | 0.13% | 6.30% |
| MPC | 0.08% | 5.40% |
| VLO | 0.08% | 5.05% |
| WMB | 0.08% | 3.84% |
| PSX | 0.08% | 5.37% |
| EOG | 0.07% | 4.24% |
| SLB | 0.07% | 4.46% |
| KMI | 0.06% | 3.72% |
| BKR | 0.05% | 3.65% |
| TRGP | 0.05% | 3.74% |
| OKE | 0.05% | 3.55% |
| DVN | 0.05% | 3.20% |
| EQT | 0.05% | 2.03% |
Largest positions held only by VT: NVDA (4.20%), AAPL (4.00%), MSFT (3.09%), AMZN (2.36%), GOOGL (1.89%). Only by XLE: IXPU6 (0.01%).
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 | XLE |
|---|---|---|
| 2022 | -18.0% | +64.3% |
| 2023 | +22.0% | -0.6% |
| 2024 | +16.5% | +5.6% |
| 2025 | +22.4% | +7.9% |
| 2026 | +15.2% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VT and XLE good diversifiers for each other?
Yes. With a correlation of 0.17, VT and XLE have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VT and XLE?
As of 2026-08-27, the correlation of weekly returns between VT and XLE is 0.17 over 3 years, -0.40 over 1 year and 0.28 over 5 years.
Is XLE a good diversifier for VT?
Yes. With a correlation of 0.17, VT and XLE have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
How much do VT and XLE overlap?
Per the issuers' own portfolio disclosures (2026-07-31), the overlap is 2.0% by weight over 21 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vt-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vt-vs-xle/)
Free with attribution; caching and terms are described in the API documentation.
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