VT vs XLV: Correlation & Overlap
Vanguard Total World Stock ETF (VT) and Health Care Select Sector SPDR Fund (XLV) show a moderate relationship: their 3-year correlation of weekly returns is 0.46. The two funds also share 5.3% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VT and XLV?
Over the past 3 years, VT and XLV moved with a correlation of 0.46, which is moderate. The past 12 months show a weaker link (0.17) than the 3-year average (0.46). Over 5 years the correlation is 0.58, and the annualized covariance of weekly returns is 93.8 %².
Among the 136 assets we track against VT, XLV ranks #117 by 3-year correlation. Neither side won the trailing year by much: +22.7% against +27.5%. Across three years, the rolling one-year figure varied moderately, from 0.22 to 0.66.
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 XLV: side by side
| VT (Vanguard Total World Stock ETF) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.7% | +27.5% |
| 5-year return | +67.7% | +37.4% |
| Volatility (ann.) | 13.9% | 14.7% |
| Beta vs S&P 500 | 0.92 | 0.42 |
| Max drawdown (3Y) | -16.5% | -17.1% |
| Dividend yield | 1.59% | 1.56% |
| Expense ratio | 0.06% | 0.08% |
| Assets under management | $97.9B | $41.7B |
| 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. On the fund side, XLV sits in the Health category at State Street Investment Management, with $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield.
Portfolio overlap between VT and XLV
The two portfolios are largely distinct: 5.3% of the funds' weight sits in the same underlying holdings (59 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in VT | Weight in XLV |
|---|---|---|
| LLY | 0.82% | 15.03% |
| JNJ | 0.55% | 10.38% |
| ABBV | 0.40% | 7.42% |
| UNH | 0.34% | 5.82% |
| MRK | 0.31% | 6.04% |
| TMO | 0.19% | 3.76% |
| AMGN | 0.19% | 3.80% |
| ABT | 0.16% | 3.17% |
| GILD | 0.15% | 2.94% |
| PFE | 0.13% | 2.58% |
| CVS | 0.12% | 1.92% |
| BMY | 0.12% | 2.20% |
| ISRG | 0.11% | 2.10% |
| DHR | 0.11% | 2.17% |
| VRTX | 0.11% | 2.22% |
Largest positions held only by VT: NVDA (4.20%), AAPL (4.00%), MSFT (3.09%), AMZN (2.36%), GOOGL (1.89%). Only by XLV: IXCU6 (0.03%), 2602335D (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 | XLV |
|---|---|---|
| 2022 | -18.0% | -2.1% |
| 2023 | +22.0% | +2.1% |
| 2024 | +16.5% | +2.5% |
| 2025 | +22.4% | +14.5% |
| 2026 | +15.2% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VT and XLV good diversifiers for each other?
Reasonably. At 0.46, VT and XLV keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between VT and XLV?
Using weekly returns as of 2026-08-27: 0.46 over 3 years, with 0.17 over the last year and 0.58 over 5 years.
Is XLV a good diversifier for VT?
Reasonably. At 0.46, VT and XLV keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do VT and XLV overlap?
The two funds share 59 holdings amounting to 5.3% of weight, per issuer portfolio files dated 2026-07-31.
Use this data
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