VTV vs XLI: Correlation & Overlap
How closely do Vanguard Value ETF (VTV) and Industrial Select Sector SPDR Fund (XLI) trade together? Their weekly returns over three years give a correlation of 0.89, which is very strong. The two funds also share 14.6% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VTV and XLI?
Across a 3-year window, the weekly returns of VTV and XLI correlate at 0.89, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.81) sits close to the 3-year figure. Stretching to 5 years gives 0.91, with an annualized covariance of 167.5 %².
By 3-year correlation, XLI places #9 of the 149 assets tracked against VTV. The trailing year gives VTV the advantage: +25.7% versus +18.3%, a 7.4-point spread. Stability stands out here, with the rolling one-year correlation confined to 0.82 through 0.95.
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 XLI: side by side
| VTV (Vanguard Value ETF) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.7% | +18.3% |
| 5-year return | +79.1% | +84.0% |
| Volatility (ann.) | 11.9% | 15.7% |
| Beta vs S&P 500 | 0.65 | 0.89 |
| Max drawdown (3Y) | -14.5% | -18.5% |
| Dividend yield | 1.86% | 1.15% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $256.4B | $32.9B |
| 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. XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Portfolio overlap between VTV and XLI
The two portfolios are largely distinct, with 50 holdings in common adding up to 14.6% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in VTV | Weight in XLI |
|---|---|---|
| CAT | 1.40% | 6.68% |
| RTX | 1.08% | 5.04% |
| GE | 0.70% | 6.52% |
| UNP | 0.65% | 3.25% |
| ETN | 0.60% | 2.87% |
| DE | 0.57% | 2.81% |
| LMT | 0.50% | 2.02% |
| PH | 0.46% | 2.31% |
| ADP | 0.40% | 1.98% |
| TT | 0.37% | 1.81% |
| GD | 0.37% | 1.71% |
| CSX | 0.35% | 1.70% |
| MMM | 0.34% | 1.66% |
| WM | 0.34% | 1.44% |
| JCI | 0.33% | 1.55% |
Largest positions held only by VTV: JPM (3.51%), MU (3.46%), BRK.B (2.99%), XOM (2.40%), JNJ (2.30%). Only by XLI: GEV (4.52%), BA (2.95%), HWM (1.90%), VRT (1.79%), PWR (1.63%).
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 | XLI |
|---|---|---|
| 2022 | -2.1% | -5.6% |
| 2023 | +9.3% | +18.1% |
| 2024 | +16.0% | +17.3% |
| 2025 | +15.3% | +19.3% |
| 2026 | +19.3% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VTV and XLI good diversifiers for each other?
Not really. At 0.89, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between VTV and XLI?
The VTV/XLI correlation stands at 0.89 on a 3-year window (1 year: 0.81, 5 years: 0.91), computed from weekly returns as of 2026-08-27.
Is XLI a good diversifier for VTV?
Not really. At 0.89, the two trade almost as one position, and owning both buys little extra protection.
How much do VTV and XLI overlap?
The two funds share 50 holdings amounting to 14.6% of weight, per issuer portfolio files dated 2026-07-31.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vtv-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vtv-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: VTV correlations · XLI correlations
