VT vs XLU: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard Total World Stock ETF (VT) and Utilities Select Sector SPDR Fund (XLU) carry a correlation of 0.31, a moderate link. The two funds also share 1.3% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VT and XLU?
Over the past 3 years, VT and XLU moved with a correlation of 0.31, which is moderate. The link has loosened recently: the 1-year correlation (0.02) runs below the 3-year figure (0.31). Over 5 years the correlation is 0.43, and the annualized covariance of weekly returns is 66.9 %².
Among the 136 assets we track against VT, XLU ranks #125 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months VT outperformed by 18.6 percentage points (+22.7% for VT against +4.1% for XLU). The relationship is regime-dependent: the rolling one-year correlation swung between 0.01 and 0.58 over the past three years, so this pair behaves very differently depending on the market environment.
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 XLU: side by side
| VT (Vanguard Total World Stock ETF) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.7% | +4.1% |
| 5-year return | +67.7% | +46.3% |
| Volatility (ann.) | 13.9% | 15.8% |
| Beta vs S&P 500 | 0.92 | 0.26 |
| Max drawdown (3Y) | -16.5% | -13.1% |
| Dividend yield | 1.59% | 2.70% |
| Expense ratio | 0.06% | 0.08% |
| Assets under management | $97.9B | $23.1B |
| 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. XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Portfolio overlap between VT and XLU
The two portfolios are largely distinct. Weighing the shared positions, 1.3% of the two funds is identical, spread across 31 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in VT | Weight in XLU |
|---|---|---|
| NEE | 0.16% | 12.94% |
| DTE | 0.12% | 2.11% |
| SO | 0.09% | 7.45% |
| DUK | 0.08% | 7.00% |
| CEG | 0.08% | 6.58% |
| AEP | 0.06% | 4.94% |
| D | 0.05% | 4.33% |
| SRE | 0.05% | 4.11% |
| PPL | 0.05% | 1.94% |
| VST | 0.04% | 3.27% |
| ETR | 0.04% | 3.62% |
| XEL | 0.04% | 3.57% |
| EXC | 0.04% | 3.35% |
| ED | 0.03% | 2.93% |
| PCG | 0.03% | 2.96% |
Largest positions held only by VT: NVDA (4.20%), AAPL (4.00%), MSFT (3.09%), AMZN (2.36%), GOOGL (1.89%). Only by XLU: .
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 | XLU |
|---|---|---|
| 2022 | -18.0% | +1.4% |
| 2023 | +22.0% | -7.2% |
| 2024 | +16.5% | +23.3% |
| 2025 | +22.4% | +16.0% |
| 2026 | +15.2% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VT and XLU good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.31 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between VT and XLU?
As of 2026-08-27, the correlation of weekly returns between VT and XLU is 0.31 over 3 years, 0.02 over 1 year and 0.43 over 5 years.
Is XLU a good diversifier for VT?
Yes, to a useful degree: a correlation of 0.31 leaves real independence between the two, which historically damped combined volatility.
How much do VT and XLU overlap?
Per the issuers' own portfolio disclosures (2026-07-31), the overlap is 1.3% by weight over 31 common positions.
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