VTV vs XLC: Correlation & Overlap
How closely do Vanguard Value ETF (VTV) and Communication Services Select Sector SPDR Fund (XLC) trade together? Their weekly returns over three years give a correlation of 0.58, which is moderate. Looking through to holdings, 2.8% 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 VTV and XLC?
Over the past 3 years, VTV and XLC moved with a correlation of 0.58, which is moderate. The past 12 months show a weaker link (0.28) than the 3-year average (0.58). Over 5 years the correlation is 0.63, and the annualized covariance of weekly returns is 110.5 %².
By 3-year correlation, XLC places #85 of the 149 assets tracked against VTV. The last year tells two different stories: VTV led by 24.2 percentage points, +25.7% for VTV against +1.5% for XLC. This link changes with the market regime, having swung between 0.28 and 0.82 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.
VTV vs XLC: side by side
| VTV (Vanguard Value ETF) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.7% | +1.5% |
| 5-year return | +79.1% | +37.5% |
| Volatility (ann.) | 11.9% | 16.0% |
| Beta vs S&P 500 | 0.65 | 0.90 |
| Max drawdown (3Y) | -14.5% | -18.0% |
| Dividend yield | 1.86% | 1.32% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $256.4B | $21.7B |
| Sector / category | ETF · US Style | Sector ETF |
VTV is a Large Value fund from Vanguard: $256.4B under management, 308 holdings, a 0.03% expense ratio, a 1.86% trailing dividend yield. On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Portfolio overlap between VTV and XLC
The two portfolios are largely distinct. Weighing the shared positions, 2.8% of the two funds is identical, spread across 9 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in VTV | Weight in XLC |
|---|---|---|
| VZ | 0.66% | 4.99% |
| DIS | 0.62% | 4.88% |
| T | 0.60% | 5.20% |
| CMCSA | 0.32% | 4.93% |
| TMUS | 0.28% | 4.53% |
| WBD | 0.23% | 4.65% |
| FOXA | 0.04% | 2.50% |
| FOX | 0.02% | 1.56% |
| CHTR | 0.02% | 3.18% |
Largest positions held only by VTV: JPM (3.51%), MU (3.46%), BRK.B (2.99%), XOM (2.40%), JNJ (2.30%). Only by XLC: META (16.73%), GOOGL (10.29%), GOOG (8.22%), NFLX (4.84%), OMC (4.52%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-07-31. Top 9 common positions shown.
Year-by-year returns
| Year | VTV | XLC |
|---|---|---|
| 2022 | -2.1% | -37.6% |
| 2023 | +9.3% | +52.8% |
| 2024 | +16.0% | +34.7% |
| 2025 | +15.3% | +23.1% |
| 2026 | +19.3% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VTV and XLC good diversifiers for each other?
Only partially. A correlation of 0.58 means VTV and XLC 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 VTV and XLC?
The VTV/XLC correlation stands at 0.58 on a 3-year window (1 year: 0.28, 5 years: 0.63), computed from weekly returns as of 2026-08-27.
Is XLC a good diversifier for VTV?
Only partially. A correlation of 0.58 means VTV and XLC share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do VTV and XLC overlap?
2.8% by weight, across 9 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-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vtv-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
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Hubs: VTV correlations · XLC correlations
