VTV vs XLV: Correlation & Overlap
Vanguard Value ETF (VTV) and Health Care Select Sector SPDR Fund (XLV) show a strong relationship: their 3-year correlation of weekly returns is 0.64. By holdings, the two funds overlap 15.6% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VTV and XLV?
On 3 years of weekly data the VTV/XLV correlation comes out at 0.64, strong. The link has loosened recently: the 1-year correlation (0.50) runs below the 3-year figure (0.64). The 5-year figure is 0.70, and annualized covariance runs at 111.8 %².
Within VTV's tracked universe of 149 assets, XLV comes in at #55 by 3-year correlation. Neither side won the trailing year by much: +25.7% against +27.5%. On a rolling one-year basis the correlation drifted between 0.54 and 0.81, 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 XLV: side by side
| VTV (Vanguard Value ETF) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.7% | +27.5% |
| 5-year return | +79.1% | +37.4% |
| Volatility (ann.) | 11.9% | 14.7% |
| Beta vs S&P 500 | 0.65 | 0.42 |
| Max drawdown (3Y) | -14.5% | -17.1% |
| Dividend yield | 1.86% | 1.56% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $256.4B | $41.7B |
| 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, XLV sits in the Health category at State Street Investment Management, with $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield.
Portfolio overlap between VTV and XLV
The two portfolios partially overlap, with 36 holdings in common adding up to 15.6% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in VTV | Weight in XLV |
|---|---|---|
| JNJ | 2.30% | 10.38% |
| ABBV | 1.65% | 7.42% |
| UNH | 1.40% | 5.82% |
| MRK | 1.20% | 6.04% |
| TMO | 0.80% | 3.76% |
| AMGN | 0.77% | 3.80% |
| ABT | 0.69% | 3.17% |
| GILD | 0.60% | 2.94% |
| PFE | 0.53% | 2.58% |
| BMY | 0.50% | 2.20% |
| CVS | 0.50% | 1.92% |
| DHR | 0.46% | 2.17% |
| MDT | 0.41% | 1.89% |
| MCK | 0.38% | 1.72% |
| ELV | 0.30% | 1.40% |
Largest positions held only by VTV: JPM (3.51%), MU (3.46%), BRK.B (2.99%), XOM (2.40%), WMT (1.82%). Only by XLV: LLY (15.03%), VRTX (2.22%), ISRG (2.10%), MRNA (0.84%), IDXX (0.70%).
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 | XLV |
|---|---|---|
| 2022 | -2.1% | -2.1% |
| 2023 | +9.3% | +2.1% |
| 2024 | +16.0% | +2.5% |
| 2025 | +15.3% | +14.5% |
| 2026 | +19.3% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VTV and XLV good diversifiers for each other?
Only partially. A correlation of 0.64 means VTV and XLV 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 XLV?
The VTV/XLV correlation stands at 0.64 on a 3-year window (1 year: 0.50, 5 years: 0.70), computed from weekly returns as of 2026-08-27.
Is XLV a good diversifier for VTV?
Only partially. A correlation of 0.64 means VTV and XLV share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do VTV and XLV overlap?
The two funds share 36 holdings amounting to 15.6% of weight, per issuer portfolio files dated 2026-07-31.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vtv-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vtv-vs-xlv/)
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Hubs: VTV correlations · XLV correlations
