VTV vs XLP: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard Value ETF (VTV) and Consumer Staples Select Sector SPDR Fund (XLP) carry a correlation of 0.59, a moderate link. The two funds also share 8.8% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VTV and XLP?
On 3 years of weekly data the VTV/XLP correlation comes out at 0.59, moderate. Recent behaviour matches the longer record: 0.58 over 1 year against 0.59 over 3. The 5-year figure is 0.69, and annualized covariance runs at 78.0 %².
By 3-year correlation, XLP places #80 of the 149 assets tracked against VTV. Their recent paths diverged sharply: over the last 12 months VTV outperformed by 17.4 percentage points (+25.7% for VTV against +8.3% for XLP). On a rolling one-year basis the correlation drifted between 0.50 and 0.78, a moderate band.
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 XLP: side by side
| VTV (Vanguard Value ETF) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.7% | +8.3% |
| 5-year return | +79.1% | +34.7% |
| Volatility (ann.) | 11.9% | 11.1% |
| Beta vs S&P 500 | 0.65 | 0.23 |
| Max drawdown (3Y) | -14.5% | -9.7% |
| Dividend yield | 1.86% | 2.58% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $256.4B | $14.6B |
| 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. On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Portfolio overlap between VTV and XLP
The two portfolios are largely distinct: 8.8% of the funds' weight sits in the same underlying holdings (25 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in VTV | Weight in XLP |
|---|---|---|
| WMT | 1.82% | 9.62% |
| PG | 1.25% | 7.10% |
| KO | 1.12% | 7.34% |
| PM | 1.11% | 6.36% |
| PEP | 0.71% | 4.39% |
| MO | 0.42% | 4.21% |
| MDLZ | 0.30% | 4.37% |
| CL | 0.27% | 4.56% |
| TGT | 0.24% | 4.67% |
| SYY | 0.15% | 2.50% |
| KDP | 0.15% | 2.75% |
| ADM | 0.14% | 2.42% |
| KVUE | 0.14% | 2.32% |
| KMB | 0.14% | 2.30% |
| DG | 0.10% | 1.70% |
Largest positions held only by VTV: JPM (3.51%), MU (3.46%), BRK.B (2.99%), XOM (2.40%), JNJ (2.30%). Only by XLP: COST (8.92%), MNST (4.28%), CASY (1.87%), BG (0.96%), SJM (0.88%).
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 | XLP |
|---|---|---|
| 2022 | -2.1% | -0.8% |
| 2023 | +9.3% | -0.8% |
| 2024 | +16.0% | +12.2% |
| 2025 | +15.3% | +1.5% |
| 2026 | +19.3% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VTV and XLP good diversifiers for each other?
Somewhat, no more. With 0.59 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between VTV and XLP?
Using weekly returns as of 2026-08-27: 0.59 over 3 years, with 0.58 over the last year and 0.69 over 5 years.
Is XLP a good diversifier for VTV?
Somewhat, no more. With 0.59 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do VTV and XLP overlap?
Per the issuers' own portfolio disclosures (2026-07-31), the overlap is 8.8% by weight over 25 common positions.
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Hubs: VTV correlations · XLP correlations
