VUG vs XLE: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard Growth ETF (VUG) and Energy Select Sector SPDR Fund (XLE) carry a correlation of 0.02, a near-zero link. Looking through to holdings, 0.3% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VUG and XLE?
Over the past 3 years, VUG and XLE moved with a correlation of 0.02, which is near zero, meaning they move largely independently. Lately the two have drifted apart, with the 1-year correlation at -0.49 versus 0.02 over 3 years. Over 5 years the correlation is 0.11, and the annualized covariance of weekly returns is 7.4 %².
Within VUG's tracked universe of 103 assets, XLE comes in at #93 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLE ahead by 27.8 points (+16.2% versus +44.0%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.50 to 0.44.
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.
VUG vs XLE: side by side
| VUG (Vanguard Growth ETF) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +16.2% | +44.0% |
| 5-year return | +78.4% | +206.7% |
| Volatility (ann.) | 19.4% | 23.1% |
| Beta vs S&P 500 | 1.28 | 0.27 |
| Max drawdown (3Y) | -22.8% | -20.1% |
| Dividend yield | 0.40% | 2.55% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $372.0B | $39.2B |
| Sector / category | ETF · US Style | Sector ETF |
VUG, Vanguard's Large Growth fund, carries $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% trailing dividend yield. XLE is an Equity Energy fund from State Street Investment Management: $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% trailing dividend yield.
Portfolio overlap between VUG and XLE
The two portfolios are largely distinct, with 3 holdings in common adding up to 0.3% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by VUG: NVDA (12.84%), AAPL (12.63%), MSFT (9.61%), GOOGL (5.81%), AMZN (5.16%). Only by XLE: XOM (20.03%), CVX (14.84%), COP (6.30%), MPC (5.40%), PSX (5.37%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-07-31. Top 3 common positions shown.
Year-by-year returns
| Year | VUG | XLE |
|---|---|---|
| 2022 | -33.2% | +64.3% |
| 2023 | +46.8% | -0.6% |
| 2024 | +32.7% | +5.6% |
| 2025 | +19.4% | +7.9% |
| 2026 | +9.6% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VUG and XLE good diversifiers for each other?
Yes. With a correlation of 0.02, VUG and XLE have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VUG and XLE?
As of 2026-08-27, the correlation of weekly returns between VUG and XLE is 0.02 over 3 years, -0.49 over 1 year and 0.11 over 5 years.
Is XLE a good diversifier for VUG?
Yes. With a correlation of 0.02, VUG and XLE have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
How much do VUG and XLE overlap?
0.3% by weight, across 3 common holdings, based on issuer-disclosed portfolios as of 2026-07-31.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vug-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vug-vs-xle/)
Free with attribution; caching and terms are described in the API documentation.
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Hubs: VUG correlations · XLE correlations
