VT vs XLI: Correlation & Overlap
How closely do Vanguard Total World Stock ETF (VT) and Industrial Select Sector SPDR Fund (XLI) trade together? Their weekly returns over three years give a correlation of 0.84, which is very strong. The two funds also share 5.1% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VT and XLI?
Across a 3-year window, the weekly returns of VT and XLI correlate at 0.84, very strong, meaning they move nearly in lockstep. Lately the two have drifted apart, with the 1-year correlation at 0.69 versus 0.84 over 3 years. Stretching to 5 years gives 0.87, with an annualized covariance of 183.8 %².
By 3-year correlation, XLI places #35 of the 136 assets tracked against VT. Their 12-month results are close: +22.7% for VT against +18.3% for XLI. The link looks structural: the rolling one-year correlation barely moved, holding between 0.69 and 0.93.
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 XLI: side by side
| VT (Vanguard Total World Stock ETF) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.7% | +18.3% |
| 5-year return | +67.7% | +84.0% |
| Volatility (ann.) | 13.9% | 15.7% |
| Beta vs S&P 500 | 0.92 | 0.89 |
| Max drawdown (3Y) | -16.5% | -18.5% |
| Dividend yield | 1.59% | 1.15% |
| Expense ratio | 0.06% | 0.08% |
| Assets under management | $97.9B | $32.9B |
| 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. 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 VT and XLI
The two portfolios are largely distinct: 5.1% of the funds' weight sits in the same underlying holdings (83 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in VT | Weight in XLI |
|---|---|---|
| GE | 0.33% | 6.52% |
| CAT | 0.33% | 6.68% |
| RTX | 0.26% | 5.04% |
| GEV | 0.24% | 4.52% |
| BA | 0.22% | 2.95% |
| UNP | 0.16% | 3.25% |
| ETN | 0.14% | 2.87% |
| DE | 0.13% | 2.81% |
| UBER | 0.12% | 2.82% |
| PH | 0.11% | 2.31% |
| LMT | 0.11% | 2.02% |
| HWM | 0.10% | 1.90% |
| ADP | 0.10% | 1.98% |
| TT | 0.09% | 1.81% |
| PWR | 0.09% | 1.63% |
Largest positions held only by VT: NVDA (4.20%), AAPL (4.00%), MSFT (3.09%), AMZN (2.36%), GOOGL (1.89%). Only by XLI: .
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 | XLI |
|---|---|---|
| 2022 | -18.0% | -5.6% |
| 2023 | +22.0% | +18.1% |
| 2024 | +16.5% | +17.3% |
| 2025 | +22.4% | +19.3% |
| 2026 | +15.2% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VT and XLI good diversifiers for each other?
No. With a correlation of 0.84, VT and XLI move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between VT and XLI?
Using weekly returns as of 2026-08-27: 0.84 over 3 years, with 0.69 over the last year and 0.87 over 5 years.
Is XLI a good diversifier for VT?
No. With a correlation of 0.84, VT and XLI move nearly in lockstep, so holding both adds very little diversification.
How much do VT and XLI overlap?
Per the issuers' own portfolio disclosures (2026-07-31), the overlap is 5.1% by weight over 83 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vt-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vt-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: VT correlations · XLI correlations
