VT vs XLY: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard Total World Stock ETF (VT) and Consumer Discretionary Select Sector SPDR Fund (XLY) carry a correlation of 0.82, a very strong link. The two funds also share 5.5% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VT and XLY?
On 3 years of weekly data the VT/XLY correlation comes out at 0.82, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.79 over 1 year against 0.82 over 3. The 5-year figure is 0.85, and annualized covariance runs at 224.1 %².
Among the 136 assets we track against VT, XLY ranks #40 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months VT outperformed by 22.8 percentage points (+22.7% for VT against -0.1% for XLY). The rolling one-year correlation stayed in a tight band between 0.79 and 0.87 over the past three years, which points to a structural rather than episodic relationship.
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 XLY: side by side
| VT (Vanguard Total World Stock ETF) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.7% | -0.1% |
| 5-year return | +67.7% | +31.8% |
| Volatility (ann.) | 13.9% | 19.7% |
| Beta vs S&P 500 | 0.92 | 1.15 |
| Max drawdown (3Y) | -16.5% | -26.0% |
| Dividend yield | 1.59% | 0.78% |
| Expense ratio | 0.06% | 0.08% |
| Assets under management | $97.9B | $22.5B |
| Sector / category | ETF · Global | Sector ETF |
On the fund side, VT sits in the Global Large-Stock Blend category at Vanguard, with $97.9B under management, 5308 holdings, a 0.06% expense ratio, a 1.59% trailing dividend yield. XLY is a Consumer Cyclical fund from State Street Investment Management: $22.5B under management, 47 holdings, a 0.08% expense ratio, a 0.78% trailing dividend yield.
Portfolio overlap between VT and XLY
The two portfolios are largely distinct, with 47 holdings in common adding up to 5.5% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in VT | Weight in XLY |
|---|---|---|
| AMZN | 2.36% | 24.32% |
| TSLA | 0.81% | 16.18% |
| HD | 0.30% | 5.54% |
| MCD | 0.17% | 4.11% |
| TJX | 0.16% | 3.55% |
| BKNG | 0.13% | 4.04% |
| SBUX | 0.11% | 3.08% |
| LOW | 0.10% | 2.94% |
| MAR | 0.07% | 1.96% |
| RCL | 0.07% | 1.80% |
| GM | 0.07% | 1.94% |
| ROST | 0.07% | 1.90% |
| ORLY | 0.07% | 1.85% |
| DASH | 0.07% | 2.24% |
| HLT | 0.06% | 1.89% |
Largest positions held only by VT: NVDA (4.20%), AAPL (4.00%), MSFT (3.09%), GOOGL (1.89%), AVGO (1.62%). Only by XLY: .
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 | XLY |
|---|---|---|
| 2022 | -18.0% | -36.3% |
| 2023 | +22.0% | +39.6% |
| 2024 | +16.5% | +26.5% |
| 2025 | +22.4% | +7.4% |
| 2026 | +15.2% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VT and XLY good diversifiers for each other?
Not really. At 0.82, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between VT and XLY?
Using weekly returns as of 2026-08-27: 0.82 over 3 years, with 0.79 over the last year and 0.85 over 5 years.
Is XLY a good diversifier for VT?
Not really. At 0.82, the two trade almost as one position, and owning both buys little extra protection.
How much do VT and XLY overlap?
5.5% by weight, across 47 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-xly.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vt-vs-xly/)
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