VTI vs XLI: Correlation & Overlap
Vanguard Total Stock Market ETF (VTI) and Industrial Select Sector SPDR Fund (XLI) show a very strong relationship: their 3-year correlation of weekly returns is 0.84. By holdings, the two funds overlap 7.9% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VTI and XLI?
On 3 years of weekly data the VTI/XLI correlation comes out at 0.84, very strong, meaning they move nearly in lockstep. Lately the two have drifted apart, with the 1-year correlation at 0.64 versus 0.84 over 3 years. The 5-year figure is 0.87, and annualized covariance runs at 193.5 %².
By 3-year correlation, XLI places #33 of the 157 assets tracked against VTI. Their 12-month results are close: +20.7% for VTI against +18.3% for XLI. On a rolling one-year basis the correlation drifted between 0.63 and 0.93, a moderate band.
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 XLI: side by side
| VTI (Vanguard Total Stock Market ETF) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.7% | +18.3% |
| 5-year return | +74.8% | +84.0% |
| Volatility (ann.) | 14.6% | 15.7% |
| Beta vs S&P 500 | 1.01 | 0.89 |
| Max drawdown (3Y) | -19.3% | -18.5% |
| Dividend yield | 1.06% | 1.15% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $2,290.0B | $32.9B |
| 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. XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Portfolio overlap between VTI and XLI
The two portfolios are largely distinct. Weighing the shared positions, 7.9% of the two funds is identical, spread across 83 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in VTI | Weight in XLI |
|---|---|---|
| GE | 0.52% | 6.52% |
| CAT | 0.52% | 6.68% |
| RTX | 0.40% | 5.04% |
| GEV | 0.37% | 4.52% |
| UNP | 0.24% | 3.25% |
| BA | 0.24% | 2.95% |
| ETN | 0.22% | 2.87% |
| DE | 0.21% | 2.81% |
| UBER | 0.20% | 2.82% |
| LMT | 0.19% | 2.02% |
| PH | 0.17% | 2.31% |
| HWM | 0.16% | 1.90% |
| ADP | 0.15% | 1.98% |
| TT | 0.14% | 1.81% |
| PWR | 0.14% | 1.63% |
Largest positions held only by VTI: NVDA (6.42%), AAPL (6.31%), MSFT (4.80%), AMZN (3.66%), GOOGL (2.91%). Only by XLI: .
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 | XLI |
|---|---|---|
| 2022 | -19.5% | -5.6% |
| 2023 | +26.0% | +18.1% |
| 2024 | +23.8% | +17.3% |
| 2025 | +17.1% | +19.3% |
| 2026 | +14.2% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VTI and XLI good diversifiers for each other?
Not really. At 0.84, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between VTI and XLI?
The VTI/XLI correlation stands at 0.84 on a 3-year window (1 year: 0.64, 5 years: 0.87), computed from weekly returns as of 2026-08-27.
Is XLI a good diversifier for VTI?
Not really. At 0.84, the two trade almost as one position, and owning both buys little extra protection.
How much do VTI and XLI overlap?
Per the issuers' own portfolio disclosures (2026-07-31), the overlap is 7.9% by weight over 83 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vti-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vti-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: VTI correlations · XLI correlations
