VTV vs XLE: Correlation & Overlap
Vanguard Value ETF (VTV) and Energy Select Sector SPDR Fund (XLE) show a moderate relationship: their 3-year correlation of weekly returns is 0.45. Looking through to holdings, 7.5% 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 XLE?
Across a 3-year window, the weekly returns of VTV and XLE correlate at 0.45, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.02 versus 0.45 over 3 years. Stretching to 5 years gives 0.52, with an annualized covariance of 123.7 %².
By 3-year correlation, XLE places #127 of the 149 assets tracked against VTV. The last year tells two different stories: XLE led by 18.3 percentage points, +25.7% for VTV against +44.0% for XLE. This link changes with the market regime, having swung between -0.01 and 0.71 on a rolling one-year basis. One caveat on sizing: XLE is 1.9 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 XLE: side by side
| VTV (Vanguard Value ETF) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.7% | +44.0% |
| 5-year return | +79.1% | +206.7% |
| Volatility (ann.) | 11.9% | 23.1% |
| Beta vs S&P 500 | 0.65 | 0.27 |
| Max drawdown (3Y) | -14.5% | -20.1% |
| Dividend yield | 1.86% | 2.55% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $256.4B | $39.2B |
| Sector / category | ETF · US Style | Sector ETF |
On the fund side, VTV sits in the Large Value category at Vanguard, with $256.4B under management, 308 holdings, a 0.03% expense ratio, a 1.86% trailing dividend yield. XLE is an Equity Energy fund from State Street Investment Management: $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% trailing dividend yield.
Portfolio overlap between VTV and XLE
The two portfolios are largely distinct, with 17 holdings in common adding up to 7.5% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in VTV | Weight in XLE |
|---|---|---|
| XOM | 2.40% | 20.03% |
| CVX | 1.39% | 14.84% |
| COP | 0.55% | 6.30% |
| VLO | 0.35% | 5.05% |
| MPC | 0.34% | 5.40% |
| WMB | 0.33% | 3.84% |
| PSX | 0.32% | 5.37% |
| EOG | 0.29% | 4.24% |
| SLB | 0.28% | 4.46% |
| KMI | 0.23% | 3.72% |
| BKR | 0.22% | 3.65% |
| OKE | 0.21% | 3.55% |
| DVN | 0.19% | 3.20% |
| OXY | 0.16% | 2.52% |
| FANG | 0.15% | 2.30% |
Largest positions held only by VTV: JPM (3.51%), MU (3.46%), BRK.B (2.99%), JNJ (2.30%), WMT (1.82%). Only by XLE: TRGP (3.74%), EXE (1.37%), TPL (1.27%), APA (0.86%), IXPU6 (0.01%).
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 | XLE |
|---|---|---|
| 2022 | -2.1% | +64.3% |
| 2023 | +9.3% | -0.6% |
| 2024 | +16.0% | +5.6% |
| 2025 | +15.3% | +7.9% |
| 2026 | +19.3% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VTV and XLE good diversifiers for each other?
A fair diversifier. At 0.45, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between VTV and XLE?
Using weekly returns as of 2026-08-27: 0.45 over 3 years, with 0.02 over the last year and 0.52 over 5 years.
Is XLE a good diversifier for VTV?
A fair diversifier. At 0.45, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do VTV and XLE overlap?
7.5% by weight, across 17 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-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vtv-vs-xle/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: VTV correlations · XLE correlations
