VTI vs XLV: Correlation & Overlap
How closely do Vanguard Total Stock Market ETF (VTI) and Health Care Select Sector SPDR Fund (XLV) trade together? Their weekly returns over three years give a correlation of 0.43, which is moderate. Looking through to holdings, 8.2% 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 XLV?
On 3 years of weekly data the VTI/XLV correlation comes out at 0.43, moderate. The link has loosened recently: the 1-year correlation (0.12) runs below the 3-year figure (0.43). The 5-year figure is 0.59, and annualized covariance runs at 93.4 %².
Among the 157 assets we track against VTI, XLV ranks #138 by 3-year correlation. The trailing year gives XLV the advantage: +20.7% versus +27.5%, a 6.8-point spread. Across three years, the rolling one-year figure varied moderately, from 0.18 to 0.67.
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 XLV: side by side
| VTI (Vanguard Total Stock Market ETF) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.7% | +27.5% |
| 5-year return | +74.8% | +37.4% |
| Volatility (ann.) | 14.6% | 14.7% |
| Beta vs S&P 500 | 1.01 | 0.42 |
| Max drawdown (3Y) | -19.3% | -17.1% |
| Dividend yield | 1.06% | 1.56% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $2,290.0B | $41.7B |
| 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, XLV sits in the Health category at State Street Investment Management, with $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield.
Portfolio overlap between VTI and XLV
The two portfolios are largely distinct: 8.2% of the funds' weight sits in the same underlying holdings (59 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in VTI | Weight in XLV |
|---|---|---|
| LLY | 1.36% | 15.03% |
| JNJ | 0.86% | 10.38% |
| ABBV | 0.62% | 7.42% |
| UNH | 0.52% | 5.82% |
| MRK | 0.45% | 6.04% |
| TMO | 0.30% | 3.76% |
| AMGN | 0.29% | 3.80% |
| ABT | 0.26% | 3.17% |
| GILD | 0.23% | 2.94% |
| PFE | 0.20% | 2.58% |
| BMY | 0.19% | 2.20% |
| CVS | 0.19% | 1.92% |
| ISRG | 0.17% | 2.10% |
| DHR | 0.17% | 2.17% |
| VRTX | 0.17% | 2.22% |
Largest positions held only by VTI: NVDA (6.42%), AAPL (6.31%), MSFT (4.80%), AMZN (3.66%), GOOGL (2.91%). Only by XLV: IXCU6 (0.03%), 2602335D (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 | XLV |
|---|---|---|
| 2022 | -19.5% | -2.1% |
| 2023 | +26.0% | +2.1% |
| 2024 | +23.8% | +2.5% |
| 2025 | +17.1% | +14.5% |
| 2026 | +14.2% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VTI and XLV good diversifiers for each other?
A fair diversifier. At 0.43, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between VTI and XLV?
As of 2026-08-27, the correlation of weekly returns between VTI and XLV is 0.43 over 3 years, 0.12 over 1 year and 0.59 over 5 years.
Is XLV a good diversifier for VTI?
A fair diversifier. At 0.43, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do VTI and XLV overlap?
8.2% by weight, across 59 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-xlv.json
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[](https://www.pairbook.io/pair/vti-vs-xlv/)
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Related comparisons
Hubs: VTI correlations · XLV correlations
