VTI vs XLC: Correlation & Overlap
Vanguard Total Stock Market ETF (VTI) and Communication Services Select Sector SPDR Fund (XLC) show a very strong relationship: their 3-year correlation of weekly returns is 0.80. Looking through to holdings, 8.8% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VTI and XLC?
Across a 3-year window, the weekly returns of VTI and XLC correlate at 0.80, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.73) sits close to the 3-year figure. Stretching to 5 years gives 0.82, with an annualized covariance of 187.6 %².
Within VTI's tracked universe of 157 assets, XLC comes in at #38 by 3-year correlation. The last year tells two different stories: VTI led by 19.2 percentage points, +20.7% for VTI against +1.5% for XLC. Across three years, the rolling one-year figure varied moderately, from 0.62 to 0.91.
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.
VTI vs XLC: side by side
| VTI (Vanguard Total Stock Market ETF) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.7% | +1.5% |
| 5-year return | +74.8% | +37.5% |
| Volatility (ann.) | 14.6% | 16.0% |
| Beta vs S&P 500 | 1.01 | 0.90 |
| Max drawdown (3Y) | -19.3% | -18.0% |
| Dividend yield | 1.06% | 1.32% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $2,290.0B | $21.7B |
| Sector / category | ETF · US Large Cap | Sector ETF |
VTI, Vanguard's Large Blend fund, carries $2,290.0B under management, 3140 holdings, a 0.03% expense ratio, a 1.06% trailing dividend yield. On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Portfolio overlap between VTI and XLC
The two portfolios are largely distinct, with 24 holdings in common adding up to 8.8% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in VTI | Weight in XLC |
|---|---|---|
| GOOGL | 2.91% | 10.29% |
| GOOG | 2.32% | 8.22% |
| META | 1.70% | 16.73% |
| NFLX | 0.42% | 4.84% |
| VZ | 0.24% | 4.99% |
| DIS | 0.23% | 4.88% |
| T | 0.22% | 5.20% |
| APP | 0.15% | 1.30% |
| CMCSA | 0.12% | 4.93% |
| TMUS | 0.10% | 4.53% |
| WBD | 0.09% | 4.65% |
| TTWO | 0.06% | 4.14% |
| LYV | 0.04% | 4.39% |
| OMC | 0.03% | 4.52% |
| RDDT | 0.03% | 0.32% |
Largest positions held only by VTI: NVDA (6.42%), AAPL (6.31%), MSFT (4.80%), AMZN (3.66%), AVGO (2.56%). Only by XLC: .
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 | VTI | XLC |
|---|---|---|
| 2022 | -19.5% | -37.6% |
| 2023 | +26.0% | +52.8% |
| 2024 | +23.8% | +34.7% |
| 2025 | +17.1% | +23.1% |
| 2026 | +14.2% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VTI and XLC good diversifiers for each other?
No. With a correlation of 0.80, VTI and XLC move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between VTI and XLC?
Using weekly returns as of 2026-08-27: 0.80 over 3 years, with 0.73 over the last year and 0.82 over 5 years.
Is XLC a good diversifier for VTI?
No. With a correlation of 0.80, VTI and XLC move nearly in lockstep, so holding both adds very little diversification.
How much do VTI and XLC overlap?
8.8% by weight, across 24 common holdings, based on issuer-disclosed portfolios as of 2026-07-31.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vti-vs-xlc.json
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[](https://www.pairbook.io/pair/vti-vs-xlc/)
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Related comparisons
Hubs: VTI correlations · XLC correlations
