VT vs XLP: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard Total World Stock ETF (VT) and Consumer Staples Select Sector SPDR Fund (XLP) carry a correlation of 0.38, a moderate link. By holdings, the two funds overlap 2.8% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VT and XLP?
On 3 years of weekly data the VT/XLP correlation comes out at 0.38, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.17 versus 0.38 over 3 years. The 5-year figure is 0.53, and annualized covariance runs at 58.7 %².
By 3-year correlation, XLP places #123 of the 136 assets tracked against VT. The trailing year gives VT the advantage: +22.7% versus +8.3%, a 14.4-point spread. Across three years, the rolling one-year figure varied moderately, from 0.17 to 0.64.
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 XLP: side by side
| VT (Vanguard Total World Stock ETF) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.7% | +8.3% |
| 5-year return | +67.7% | +34.7% |
| Volatility (ann.) | 13.9% | 11.1% |
| Beta vs S&P 500 | 0.92 | 0.23 |
| Max drawdown (3Y) | -16.5% | -9.7% |
| Dividend yield | 1.59% | 2.58% |
| Expense ratio | 0.06% | 0.08% |
| Assets under management | $97.9B | $14.6B |
| 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, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Portfolio overlap between VT and XLP
The two portfolios are largely distinct: 2.8% of the funds' weight sits in the same underlying holdings (34 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in VT | Weight in XLP |
|---|---|---|
| WMT | 0.44% | 9.62% |
| COST | 0.38% | 8.92% |
| KO | 0.30% | 7.34% |
| PG | 0.30% | 7.10% |
| PM | 0.27% | 6.36% |
| PEP | 0.17% | 4.39% |
| MO | 0.10% | 4.21% |
| DG | 0.09% | 1.70% |
| MDLZ | 0.07% | 4.37% |
| EL | 0.07% | 1.63% |
| CL | 0.06% | 4.56% |
| MNST | 0.06% | 4.28% |
| TGT | 0.06% | 4.67% |
| ADM | 0.05% | 2.42% |
| SYY | 0.04% | 2.50% |
Largest positions held only by VT: NVDA (4.20%), AAPL (4.00%), MSFT (3.09%), AMZN (2.36%), GOOGL (1.89%). Only by XLP: IXRU6 (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 | VT | XLP |
|---|---|---|
| 2022 | -18.0% | -0.8% |
| 2023 | +22.0% | -0.8% |
| 2024 | +16.5% | +12.2% |
| 2025 | +22.4% | +1.5% |
| 2026 | +15.2% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VT and XLP good diversifiers for each other?
A fair diversifier. At 0.38, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between VT and XLP?
The VT/XLP correlation stands at 0.38 on a 3-year window (1 year: 0.17, 5 years: 0.53), computed from weekly returns as of 2026-08-27.
Is XLP a good diversifier for VT?
A fair diversifier. At 0.38, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do VT and XLP overlap?
Per the issuers' own portfolio disclosures (2026-07-31), the overlap is 2.8% by weight over 34 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vt-vs-xlp.json
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[](https://www.pairbook.io/pair/vt-vs-xlp/)
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