VTV vs XLU: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard Value ETF (VTV) and Utilities Select Sector SPDR Fund (XLU) carry a correlation of 0.50, a moderate link. The two funds also share 4.7% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VTV and XLU?
Across a 3-year window, the weekly returns of VTV and XLU correlate at 0.50, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.33 versus 0.50 over 3 years. Stretching to 5 years gives 0.60, with an annualized covariance of 93.8 %².
Among the 149 assets we track against VTV, XLU ranks #114 by 3-year correlation. The last year tells two different stories: VTV led by 21.6 percentage points, +25.7% for VTV against +4.1% for XLU. The rolling one-year correlation moved between 0.24 and 0.67 over the past three years, a moderate range.
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 XLU: side by side
| VTV (Vanguard Value ETF) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.7% | +4.1% |
| 5-year return | +79.1% | +46.3% |
| Volatility (ann.) | 11.9% | 15.8% |
| Beta vs S&P 500 | 0.65 | 0.26 |
| Max drawdown (3Y) | -14.5% | -13.1% |
| Dividend yield | 1.86% | 2.70% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $256.4B | $23.1B |
| 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. XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Portfolio overlap between VTV and XLU
The two portfolios are largely distinct. Weighing the shared positions, 4.7% of the two funds is identical, spread across 26 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in VTV | Weight in XLU |
|---|---|---|
| NEE | 0.64% | 12.94% |
| SO | 0.40% | 7.45% |
| DUK | 0.36% | 7.00% |
| CEG | 0.32% | 6.58% |
| AEP | 0.26% | 4.94% |
| D | 0.23% | 4.33% |
| SRE | 0.22% | 4.11% |
| ETR | 0.19% | 3.62% |
| VST | 0.19% | 3.27% |
| XEL | 0.18% | 3.57% |
| EXC | 0.17% | 3.35% |
| ED | 0.15% | 2.93% |
| PEG | 0.14% | 2.72% |
| PCG | 0.14% | 2.96% |
| WEC | 0.13% | 2.58% |
Largest positions held only by VTV: JPM (3.51%), MU (3.46%), BRK.B (2.99%), XOM (2.40%), JNJ (2.30%). Only by XLU: ATO (2.08%), NRG (1.80%), EVRG (1.40%), PNW (0.88%), AES (0.77%).
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 | XLU |
|---|---|---|
| 2022 | -2.1% | +1.4% |
| 2023 | +9.3% | -7.2% |
| 2024 | +16.0% | +23.3% |
| 2025 | +15.3% | +16.0% |
| 2026 | +19.3% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VTV and XLU good diversifiers for each other?
Somewhat, no more. With 0.50 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between VTV and XLU?
As of 2026-08-27, the correlation of weekly returns between VTV and XLU is 0.50 over 3 years, 0.33 over 1 year and 0.60 over 5 years.
Is XLU a good diversifier for VTV?
Somewhat, no more. With 0.50 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do VTV and XLU overlap?
4.7% by weight, across 26 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-xlu.json
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[](https://www.pairbook.io/pair/vtv-vs-xlu/)
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Related comparisons
Hubs: VTV correlations · XLU correlations
