VT vs XLRE: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard Total World Stock ETF (VT) and Real Estate Select Sector SPDR Fund (XLRE) carry a correlation of 0.55, a moderate link. By holdings, the two funds overlap 1.1% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VT and XLRE?
Across a 3-year window, the weekly returns of VT and XLRE correlate at 0.55, moderate. The past 12 months show a weaker link (0.35) than the 3-year average (0.55). Stretching to 5 years gives 0.69, with an annualized covariance of 128.3 %².
Within VT's tracked universe of 136 assets, XLRE comes in at #99 by 3-year correlation. On 12-month performance VT holds a 13.2-point edge, +22.7% against +9.5%. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.35 to 0.88.
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 XLRE: side by side
| VT (Vanguard Total World Stock ETF) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.7% | +9.5% |
| 5-year return | +67.7% | +11.4% |
| Volatility (ann.) | 13.9% | 16.7% |
| Beta vs S&P 500 | 0.92 | 0.57 |
| Max drawdown (3Y) | -16.5% | -16.6% |
| Dividend yield | 1.59% | 3.12% |
| Expense ratio | 0.06% | 0.08% |
| Assets under management | $97.9B | $8.6B |
| 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, XLRE sits in the Real Estate category at State Street Investment Management, with $8.6B under management, 31 holdings, a 0.08% expense ratio, a 3.12% trailing dividend yield.
Portfolio overlap between VT and XLRE
The two portfolios are largely distinct: 1.1% of the funds' weight sits in the same underlying holdings (29 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in VT | Weight in XLRE |
|---|---|---|
| WELL | 0.15% | 11.43% |
| PLD | 0.12% | 9.06% |
| EQIX | 0.09% | 7.14% |
| AMT | 0.07% | 5.49% |
| SPG | 0.07% | 4.72% |
| DLR | 0.06% | 5.01% |
| O | 0.05% | 4.46% |
| PSA | 0.05% | 4.63% |
| VTR | 0.04% | 4.59% |
| CBRE | 0.04% | 4.45% |
| IRM | 0.03% | 3.65% |
| CCI | 0.03% | 3.33% |
| EXR | 0.03% | 3.08% |
| VICI | 0.02% | 2.87% |
| ESS | 0.02% | 1.87% |
Largest positions held only by VT: NVDA (4.20%), AAPL (4.00%), MSFT (3.09%), AMZN (2.36%), GOOGL (1.89%). Only by XLRE: VMRK (4.96%), XARU6 (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 | XLRE |
|---|---|---|
| 2022 | -18.0% | -26.2% |
| 2023 | +22.0% | +12.4% |
| 2024 | +16.5% | +5.1% |
| 2025 | +22.4% | +2.6% |
| 2026 | +15.2% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VT and XLRE good diversifiers for each other?
To a limited degree. At 0.55 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 XLRE?
Using weekly returns as of 2026-08-27: 0.55 over 3 years, with 0.35 over the last year and 0.69 over 5 years.
Is XLRE a good diversifier for VT?
To a limited degree. At 0.55 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 XLRE overlap?
1.1% by weight, across 29 common holdings, based on issuer-disclosed portfolios as of 2026-07-31.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vt-vs-xlre.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/vt-vs-xlre/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VT correlations · XLRE correlations
