VTV vs XLRE: Correlation & Overlap
Vanguard Value ETF (VTV) and Real Estate Select Sector SPDR Fund (XLRE) show a strong relationship: their 3-year correlation of weekly returns is 0.72. By holdings, the two funds overlap 2.4% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VTV and XLRE?
Across a 3-year window, the weekly returns of VTV and XLRE correlate at 0.72, strong. Little has changed lately, as the 1-year reading of 0.65 lands near the 3-year figure. Stretching to 5 years gives 0.76, with an annualized covariance of 143.5 %².
Among the 149 assets we track against VTV, XLRE ranks #32 by 3-year correlation. Correlation aside, the last 12 months split them widely, with VTV ahead by 16.2 points (+25.7% versus +9.5%). Across three years, the rolling one-year figure varied moderately, from 0.59 to 0.85.
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 XLRE: side by side
| VTV (Vanguard Value ETF) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.7% | +9.5% |
| 5-year return | +79.1% | +11.4% |
| Volatility (ann.) | 11.9% | 16.7% |
| Beta vs S&P 500 | 0.65 | 0.57 |
| Max drawdown (3Y) | -14.5% | -16.6% |
| Dividend yield | 1.86% | 3.12% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $256.4B | $8.6B |
| 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, XLRE sits in the Real Estate category at State Street Investment Management, with $8.6B under management, 31 holdings, a 0.08% expense ratio, a 3.12% trailing dividend yield.
Portfolio overlap between VTV and XLRE
The two portfolios are largely distinct, with 12 holdings in common adding up to 2.4% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in VTV | Weight in XLRE |
|---|---|---|
| PLD | 0.50% | 9.06% |
| AMT | 0.30% | 5.49% |
| SPG | 0.26% | 4.72% |
| DLR | 0.25% | 5.01% |
| PSA | 0.20% | 4.63% |
| VTR | 0.17% | 4.59% |
| CBRE | 0.16% | 4.45% |
| IRM | 0.13% | 3.65% |
| CCI | 0.12% | 3.33% |
| EXR | 0.12% | 3.08% |
| O | 0.11% | 4.46% |
| VICI | 0.10% | 2.87% |
Largest positions held only by VTV: JPM (3.51%), MU (3.46%), BRK.B (2.99%), XOM (2.40%), JNJ (2.30%). Only by XLRE: WELL (11.43%), EQIX (7.14%), VMRK (4.96%), SBAC (1.99%), ESS (1.87%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-07-31. Top 12 common positions shown.
Year-by-year returns
| Year | VTV | XLRE |
|---|---|---|
| 2022 | -2.1% | -26.2% |
| 2023 | +9.3% | +12.4% |
| 2024 | +16.0% | +5.1% |
| 2025 | +15.3% | +2.6% |
| 2026 | +19.3% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VTV and XLRE good diversifiers for each other?
Only partially. A correlation of 0.72 means VTV and XLRE 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 XLRE?
As of 2026-08-27, the correlation of weekly returns between VTV and XLRE is 0.72 over 3 years, 0.65 over 1 year and 0.76 over 5 years.
Is XLRE a good diversifier for VTV?
Only partially. A correlation of 0.72 means VTV and XLRE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do VTV and XLRE overlap?
2.4% by weight, across 12 common holdings, based on issuer-disclosed portfolios as of 2026-07-31.
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Related comparisons
Hubs: VTV correlations · XLRE correlations
