VTI vs XYL: Correlation
How closely do Vanguard Total Stock Market ETF (VTI) and Xylem Inc. (XYL) trade together? Their weekly returns over three years give a correlation of 0.60, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VTI and XYL?
Across a 3-year window, the weekly returns of VTI and XYL correlate at 0.60, strong. The past 12 months show a weaker link (0.32) than the 3-year average (0.60). Stretching to 5 years gives 0.64, with an annualized covariance of 210.6 %².
Among the 157 assets we track against VTI, XYL ranks #81 by 3-year correlation. Correlation aside, the last 12 months split them widely, with VTI ahead by 41.8 points (+20.7% versus -21.1%). The relationship is regime-dependent: the rolling one-year correlation swung between 0.17 and 0.79 over the past three years, so this pair behaves very differently depending on the market environment. Risk is not evenly split, since XYL carries 1.6 times the volatility of the other side.
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 XYL: side by side
| VTI (Vanguard Total Stock Market ETF) | XYL (Xylem Inc.) | |
|---|---|---|
| 1-year return | +20.7% | -21.1% |
| 5-year return | +74.8% | -12.5% |
| Volatility (ann.) | 14.6% | 23.9% |
| Beta vs S&P 500 | 1.01 | 0.96 |
| Max drawdown (3Y) | -19.3% | -30.0% |
| Market cap | – | $26.3B |
| P/E (trailing) | – | 26.8 |
| Dividend yield | 1.06% | 1.47% |
| Expense ratio | 0.03% | – |
| Assets under management | $2,290.0B | – |
| Sector / category | ETF · US Large Cap | Industrials |
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.
Year-by-year returns
| Year | VTI | XYL |
|---|---|---|
| 2022 | -19.5% | -6.6% |
| 2023 | +26.0% | +4.8% |
| 2024 | +23.8% | +2.6% |
| 2025 | +17.1% | +18.8% |
| 2026 | +14.2% | -16.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VTI and XYL good diversifiers for each other?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between VTI and XYL?
Using weekly returns as of 2026-08-27: 0.60 over 3 years, with 0.32 over the last year and 0.64 over 5 years.
Is XYL a good diversifier for VTI?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.60 mean?
On the −1 to +1 scale, 0.60 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vti-vs-xyl.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vti-vs-xyl/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VTI correlations · XYL correlations
