VTV vs XYL: Correlation
Vanguard Value ETF (VTV) and Xylem Inc. (XYL) show a strong relationship: their 3-year correlation of weekly returns is 0.62.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VTV and XYL?
On 3 years of weekly data the VTV/XYL correlation comes out at 0.62, strong. The past 12 months show a weaker link (0.41) than the 3-year average (0.62). The 5-year figure is 0.64, and annualized covariance runs at 175.6 %².
Within VTV's tracked universe of 149 assets, XYL comes in at #63 by 3-year correlation. The last year tells two different stories: VTV led by 46.8 percentage points, +25.7% for VTV against -21.1% for XYL. The relationship is regime-dependent: the rolling one-year correlation swung between 0.25 and 0.83 over the past three years, so this pair behaves very differently depending on the market environment. One caveat on sizing: XYL is 2.0 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 XYL: side by side
| VTV (Vanguard Value ETF) | XYL (Xylem Inc.) | |
|---|---|---|
| 1-year return | +25.7% | -21.1% |
| 5-year return | +79.1% | -12.5% |
| Volatility (ann.) | 11.9% | 23.9% |
| Beta vs S&P 500 | 0.65 | 0.96 |
| Max drawdown (3Y) | -14.5% | -30.0% |
| Market cap | – | $26.3B |
| P/E (trailing) | – | 26.8 |
| Dividend yield | 1.86% | 1.47% |
| Expense ratio | 0.03% | – |
| Assets under management | $256.4B | – |
| Sector / category | ETF · US Style | Industrials |
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.
Year-by-year returns
| Year | VTV | XYL |
|---|---|---|
| 2022 | -2.1% | -6.6% |
| 2023 | +9.3% | +4.8% |
| 2024 | +16.0% | +2.6% |
| 2025 | +15.3% | +18.8% |
| 2026 | +19.3% | -16.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.1% of VTV is XYL itself, so the fund partly moves with the stock by construction.
Are VTV and XYL good diversifiers for each other?
Only partially. A correlation of 0.62 means VTV and XYL 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 XYL?
Using weekly returns as of 2026-08-27: 0.62 over 3 years, with 0.41 over the last year and 0.64 over 5 years.
Is XYL a good diversifier for VTV?
Only partially. A correlation of 0.62 means VTV and XYL share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.62 mean?
On the −1 to +1 scale, 0.62 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vtv-vs-xyl.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vtv-vs-xyl/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VTV correlations · XYL correlations
