VTV vs XLY: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard Value ETF (VTV) and Consumer Discretionary Select Sector SPDR Fund (XLY) carry a correlation of 0.63, a strong link. The two funds also share 3.9% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VTV and XLY?
On 3 years of weekly data the VTV/XLY correlation comes out at 0.63, strong. The link has loosened recently: the 1-year correlation (0.41) runs below the 3-year figure (0.63). The 5-year figure is 0.69, and annualized covariance runs at 147.1 %².
By 3-year correlation, XLY places #59 of the 149 assets tracked against VTV. Their recent paths diverged sharply: over the last 12 months VTV outperformed by 25.8 percentage points (+25.7% for VTV against -0.1% for XLY). Across three years, the rolling one-year figure varied moderately, from 0.43 to 0.81. One caveat on sizing: XLY is 1.7 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 XLY: side by side
| VTV (Vanguard Value ETF) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.7% | -0.1% |
| 5-year return | +79.1% | +31.8% |
| Volatility (ann.) | 11.9% | 19.7% |
| Beta vs S&P 500 | 0.65 | 1.15 |
| Max drawdown (3Y) | -14.5% | -26.0% |
| Dividend yield | 1.86% | 0.78% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $256.4B | $22.5B |
| 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. XLY is a Consumer Cyclical fund from State Street Investment Management: $22.5B under management, 47 holdings, a 0.08% expense ratio, a 0.78% trailing dividend yield.
Portfolio overlap between VTV and XLY
The two portfolios are largely distinct: 3.9% of the funds' weight sits in the same underlying holdings (19 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in VTV | Weight in XLY |
|---|---|---|
| HD | 1.23% | 5.54% |
| LOW | 0.43% | 2.94% |
| ROST | 0.30% | 1.90% |
| GM | 0.30% | 1.94% |
| F | 0.21% | 1.36% |
| EBAY | 0.19% | 1.15% |
| NKE | 0.19% | 1.15% |
| GRMN | 0.18% | 1.18% |
| RCL | 0.14% | 1.80% |
| DHI | 0.14% | 0.98% |
| CCL | 0.13% | 0.82% |
| PHM | 0.09% | 0.62% |
| DRI | 0.09% | 0.62% |
| ULTA | 0.08% | 0.59% |
| LEN | 0.07% | 0.47% |
Largest positions held only by VTV: JPM (3.51%), MU (3.46%), BRK.B (2.99%), XOM (2.40%), JNJ (2.30%). Only by XLY: AMZN (24.32%), TSLA (16.18%), MCD (4.11%), BKNG (4.04%), TJX (3.55%).
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 | XLY |
|---|---|---|
| 2022 | -2.1% | -36.3% |
| 2023 | +9.3% | +39.6% |
| 2024 | +16.0% | +26.5% |
| 2025 | +15.3% | +7.4% |
| 2026 | +19.3% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VTV and XLY good diversifiers for each other?
To a limited degree. At 0.63 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between VTV and XLY?
As of 2026-08-27, the correlation of weekly returns between VTV and XLY is 0.63 over 3 years, 0.41 over 1 year and 0.69 over 5 years.
Is XLY a good diversifier for VTV?
To a limited degree. At 0.63 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do VTV and XLY overlap?
The two funds share 19 holdings amounting to 3.9% of weight, per issuer portfolio files dated 2026-07-31.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vtv-vs-xly.json
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[](https://www.pairbook.io/pair/vtv-vs-xly/)
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Related comparisons
Hubs: VTV correlations · XLY correlations
