VTV vs XLB: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard Value ETF (VTV) and Materials Select Sector SPDR Fund (XLB) carry a correlation of 0.83, a very strong link. The two funds also share 3.0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VTV and XLB?
Across a 3-year window, the weekly returns of VTV and XLB correlate at 0.83, very strong, meaning they move nearly in lockstep. The link has loosened recently: the 1-year correlation (0.71) runs below the 3-year figure (0.83). Stretching to 5 years gives 0.85, with an annualized covariance of 166.3 %².
Within VTV's tracked universe of 149 assets, XLB comes in at #16 by 3-year correlation. On 12-month performance VTV holds a 8.1-point edge, +25.7% against +17.6%. The rolling one-year correlation stayed in a tight band between 0.74 and 0.92 over the past three years, which points to a structural rather than episodic relationship.
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.
VTV vs XLB: side by side
| VTV (Vanguard Value ETF) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.7% | +17.6% |
| 5-year return | +79.1% | +36.9% |
| Volatility (ann.) | 11.9% | 16.7% |
| Beta vs S&P 500 | 0.65 | 0.72 |
| Max drawdown (3Y) | -14.5% | -23.2% |
| Dividend yield | 1.86% | 1.68% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $256.4B | $8.3B |
| Sector / category | ETF · US Style | Sector ETF |
VTV, Vanguard's Large Value fund, carries $256.4B under management, 308 holdings, a 0.03% expense ratio, a 1.86% trailing dividend yield. XLB is a Natural Resources fund from State Street Investment Management: $8.3B under management, 26 holdings, a 0.08% expense ratio, a 1.68% trailing dividend yield.
Portfolio overlap between VTV and XLB
The two portfolios are largely distinct. Weighing the shared positions, 3.0% of the two funds is identical, spread across 16 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in VTV | Weight in XLB |
|---|---|---|
| LIN | 0.82% | 12.94% |
| NEM | 0.37% | 8.02% |
| FCX | 0.34% | 6.48% |
| APD | 0.24% | 4.71% |
| CRH | 0.24% | 4.12% |
| NUE | 0.22% | 4.28% |
| CTVA | 0.20% | 4.72% |
| SHW | 0.15% | 4.87% |
| PPG | 0.09% | 3.32% |
| PKG | 0.08% | 2.85% |
| STLD | 0.06% | 3.73% |
| MLM | 0.06% | 4.09% |
| DOW | 0.04% | 2.85% |
| IP | 0.04% | 2.86% |
| IFF | 0.04% | 2.90% |
Largest positions held only by VTV: JPM (3.51%), MU (3.46%), BRK.B (2.99%), XOM (2.40%), JNJ (2.30%). Only by XLB: ECL (4.80%), VMC (4.26%), SW (3.39%), AMCR (2.84%), CF (2.52%).
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 | VTV | XLB |
|---|---|---|
| 2022 | -2.1% | -12.3% |
| 2023 | +9.3% | +12.5% |
| 2024 | +16.0% | +0.1% |
| 2025 | +15.3% | +9.9% |
| 2026 | +19.3% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VTV and XLB good diversifiers for each other?
No: a correlation of 0.83 means VTV and XLB tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between VTV and XLB?
Using weekly returns as of 2026-08-27: 0.83 over 3 years, with 0.71 over the last year and 0.85 over 5 years.
Is XLB a good diversifier for VTV?
No: a correlation of 0.83 means VTV and XLB tend to fall together, which is precisely when diversification is supposed to help.
How much do VTV and XLB overlap?
3.0% by weight, across 16 common holdings, based on issuer-disclosed portfolios as of 2026-07-31.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vtv-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/vtv-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: VTV correlations · XLB correlations
