VTI vs XLP: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard Total Stock Market ETF (VTI) and Consumer Staples Select Sector SPDR Fund (XLP) carry a correlation of 0.32, a moderate link. Looking through to holdings, 4.1% 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 XLP?
On 3 years of weekly data the VTI/XLP correlation comes out at 0.32, moderate. The past 12 months show a weaker link (0.06) than the 3-year average (0.32). The 5-year figure is 0.53, and annualized covariance runs at 52.2 %².
By 3-year correlation, XLP places #145 of the 157 assets tracked against VTI. On 12-month performance VTI holds a 12.4-point edge, +20.7% against +8.3%. This link changes with the market regime, having swung between 0.06 and 0.66 on a rolling one-year basis.
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 XLP: side by side
| VTI (Vanguard Total Stock Market ETF) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.7% | +8.3% |
| 5-year return | +74.8% | +34.7% |
| Volatility (ann.) | 14.6% | 11.1% |
| Beta vs S&P 500 | 1.01 | 0.23 |
| Max drawdown (3Y) | -19.3% | -9.7% |
| Dividend yield | 1.06% | 2.58% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $2,290.0B | $14.6B |
| Sector / category | ETF · US Large Cap | Sector ETF |
On the fund side, VTI sits in the Large Blend category at Vanguard, with $2,290.0B under management, 3140 holdings, a 0.03% expense ratio, a 1.06% trailing dividend yield. On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Portfolio overlap between VTI and XLP
The two portfolios are largely distinct, with 34 holdings in common adding up to 4.1% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in VTI | Weight in XLP |
|---|---|---|
| WMT | 0.68% | 9.62% |
| COST | 0.59% | 8.92% |
| PG | 0.47% | 7.10% |
| KO | 0.42% | 7.34% |
| PM | 0.41% | 6.36% |
| PEP | 0.27% | 4.39% |
| MO | 0.16% | 4.21% |
| MDLZ | 0.11% | 4.37% |
| CL | 0.10% | 4.56% |
| MNST | 0.09% | 4.28% |
| TGT | 0.09% | 4.67% |
| SYY | 0.06% | 2.50% |
| KDP | 0.06% | 2.75% |
| ADM | 0.05% | 2.42% |
| KVUE | 0.05% | 2.32% |
Largest positions held only by VTI: NVDA (6.42%), AAPL (6.31%), MSFT (4.80%), AMZN (3.66%), GOOGL (2.91%). Only by XLP: IXRU6 (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 | VTI | XLP |
|---|---|---|
| 2022 | -19.5% | -0.8% |
| 2023 | +26.0% | -0.8% |
| 2024 | +23.8% | +12.2% |
| 2025 | +17.1% | +1.5% |
| 2026 | +14.2% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VTI and XLP good diversifiers for each other?
A fair diversifier. At 0.32, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between VTI and XLP?
Using weekly returns as of 2026-08-27: 0.32 over 3 years, with 0.06 over the last year and 0.53 over 5 years.
Is XLP a good diversifier for VTI?
A fair diversifier. At 0.32, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do VTI and XLP overlap?
Per the issuers' own portfolio disclosures (2026-07-31), the overlap is 4.1% by weight over 34 common positions.
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Hubs: VTI correlations · XLP correlations
