VTI vs XLRE: Correlation & Overlap
How closely do Vanguard Total Stock Market ETF (VTI) and Real Estate Select Sector SPDR Fund (XLRE) trade together? Their weekly returns over three years give a correlation of 0.53, which is moderate. Looking through to holdings, 1.6% 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 XLRE?
Across a 3-year window, the weekly returns of VTI and XLRE correlate at 0.53, moderate. The past 12 months show a weaker link (0.29) than the 3-year average (0.53). Stretching to 5 years gives 0.69, with an annualized covariance of 128.7 %².
Among the 157 assets we track against VTI, XLRE ranks #113 by 3-year correlation. The trailing year gives VTI the advantage: +20.7% versus +9.5%, a 11.2-point spread. This link changes with the market regime, having swung between 0.29 and 0.88 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 XLRE: side by side
| VTI (Vanguard Total Stock Market ETF) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.7% | +9.5% |
| 5-year return | +74.8% | +11.4% |
| Volatility (ann.) | 14.6% | 16.7% |
| Beta vs S&P 500 | 1.01 | 0.57 |
| Max drawdown (3Y) | -19.3% | -16.6% |
| Dividend yield | 1.06% | 3.12% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $2,290.0B | $8.6B |
| 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, XLRE sits in the Real Estate category at State Street Investment Management, with $8.6B under management, 31 holdings, a 0.08% expense ratio, a 3.12% trailing dividend yield.
Portfolio overlap between VTI and XLRE
The two portfolios are largely distinct, with 29 holdings in common adding up to 1.6% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in VTI | Weight in XLRE |
|---|---|---|
| WELL | 0.23% | 11.43% |
| PLD | 0.19% | 9.06% |
| EQIX | 0.14% | 7.14% |
| AMT | 0.11% | 5.49% |
| SPG | 0.10% | 4.72% |
| DLR | 0.09% | 5.01% |
| O | 0.08% | 4.46% |
| PSA | 0.08% | 4.63% |
| VTR | 0.06% | 4.59% |
| CBRE | 0.06% | 4.45% |
| IRM | 0.05% | 3.65% |
| CCI | 0.05% | 3.33% |
| EXR | 0.04% | 3.08% |
| VICI | 0.04% | 2.87% |
| SBAC | 0.03% | 1.99% |
Largest positions held only by VTI: NVDA (6.42%), AAPL (6.31%), MSFT (4.80%), AMZN (3.66%), GOOGL (2.91%). Only by XLRE: VMRK (4.96%), XARU6 (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 | XLRE |
|---|---|---|
| 2022 | -19.5% | -26.2% |
| 2023 | +26.0% | +12.4% |
| 2024 | +23.8% | +5.1% |
| 2025 | +17.1% | +2.6% |
| 2026 | +14.2% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VTI and XLRE good diversifiers for each other?
Only partially. A correlation of 0.53 means VTI and XLRE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between VTI and XLRE?
The VTI/XLRE correlation stands at 0.53 on a 3-year window (1 year: 0.29, 5 years: 0.69), computed from weekly returns as of 2026-08-27.
Is XLRE a good diversifier for VTI?
Only partially. A correlation of 0.53 means VTI and XLRE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do VTI and XLRE overlap?
Per the issuers' own portfolio disclosures (2026-07-31), the overlap is 1.6% by weight over 29 common positions.
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Related comparisons
Hubs: VTI correlations · XLRE correlations
