VUG vs XLI: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard Growth ETF (VUG) and Industrial Select Sector SPDR Fund (XLI) carry a correlation of 0.67, a strong link. Looking through to holdings, 4.3% 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 XLI?
Across a 3-year window, the weekly returns of VUG and XLI correlate at 0.67, strong. The past 12 months show a weaker link (0.40) than the 3-year average (0.67). Stretching to 5 years gives 0.73, with an annualized covariance of 204.2 %².
Within VUG's tracked universe of 103 assets, XLI comes in at #33 by 3-year correlation. Their 12-month results are close: +16.2% for VUG against +18.3% for XLI. Across three years, the rolling one-year figure varied moderately, from 0.38 to 0.87.
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 XLI: side by side
| VUG (Vanguard Growth ETF) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +16.2% | +18.3% |
| 5-year return | +78.4% | +84.0% |
| Volatility (ann.) | 19.4% | 15.7% |
| Beta vs S&P 500 | 1.28 | 0.89 |
| Max drawdown (3Y) | -22.8% | -18.5% |
| Dividend yield | 0.40% | 1.15% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $372.0B | $32.9B |
| 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. XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Portfolio overlap between VUG and XLI
The two portfolios are largely distinct: 4.3% of the funds' weight sits in the same underlying holdings (16 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in VUG | Weight in XLI |
|---|---|---|
| GEV | 0.76% | 4.52% |
| GE | 0.54% | 6.52% |
| BA | 0.49% | 2.95% |
| HWM | 0.33% | 1.90% |
| PWR | 0.29% | 1.63% |
| VRT | 0.27% | 1.79% |
| UBER | 0.22% | 2.82% |
| CTAS | 0.21% | 1.23% |
| TDG | 0.21% | 1.19% |
| GWW | 0.19% | 1.02% |
| FIX | 0.19% | 1.00% |
| FAST | 0.17% | 1.04% |
| AXON | 0.13% | 0.86% |
| ODFL | 0.13% | 0.64% |
| VRSK | 0.09% | 0.43% |
Largest positions held only by VUG: NVDA (12.84%), AAPL (12.63%), MSFT (9.61%), GOOGL (5.81%), AMZN (5.16%). Only by XLI: CAT (6.68%), RTX (5.04%), UNP (3.25%), ETN (2.87%), DE (2.81%).
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 | VUG | XLI |
|---|---|---|
| 2022 | -33.2% | -5.6% |
| 2023 | +46.8% | +18.1% |
| 2024 | +32.7% | +17.3% |
| 2025 | +19.4% | +19.3% |
| 2026 | +9.6% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VUG and XLI good diversifiers for each other?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between VUG and XLI?
Using weekly returns as of 2026-08-27: 0.67 over 3 years, with 0.40 over the last year and 0.73 over 5 years.
Is XLI a good diversifier for VUG?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do VUG and XLI overlap?
4.3% by weight, across 16 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-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vug-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: VUG correlations · XLI correlations
