VUG vs XLV: Correlation & Overlap
How closely do Vanguard Growth ETF (VUG) and Health Care Select Sector SPDR Fund (XLV) trade together? Their weekly returns over three years give a correlation of 0.25, which is weak. The two funds also share 4.5% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VUG and XLV?
Over the past 3 years, VUG and XLV moved with a correlation of 0.25, which is weak. The past 12 months show a weaker link (-0.08) than the 3-year average (0.25). Over 5 years the correlation is 0.45, and the annualized covariance of weekly returns is 72.5 %².
Within VUG's tracked universe of 103 assets, XLV comes in at #90 by 3-year correlation. The trailing year gives XLV the advantage: +16.2% versus +27.5%, a 11.3-point spread. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.03 to 0.53.
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 XLV: side by side
| VUG (Vanguard Growth ETF) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +16.2% | +27.5% |
| 5-year return | +78.4% | +37.4% |
| Volatility (ann.) | 19.4% | 14.7% |
| Beta vs S&P 500 | 1.28 | 0.42 |
| Max drawdown (3Y) | -22.8% | -17.1% |
| Dividend yield | 0.40% | 1.56% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $372.0B | $41.7B |
| 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. 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 VUG and XLV
The two portfolios are largely distinct: 4.5% of the funds' weight sits in the same underlying holdings (12 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in VUG | Weight in XLV |
|---|---|---|
| LLY | 2.72% | 15.03% |
| ISRG | 0.36% | 2.10% |
| VRTX | 0.35% | 2.22% |
| SYK | 0.18% | 1.82% |
| IDXX | 0.14% | 0.70% |
| BSX | 0.12% | 1.14% |
| DXCM | 0.11% | 0.55% |
| VEEV | 0.11% | 0.59% |
| RMD | 0.11% | 0.55% |
| MTD | 0.10% | 0.45% |
| WST | 0.09% | 0.39% |
| WAT | 0.07% | 0.65% |
Largest positions held only by VUG: NVDA (12.84%), AAPL (12.63%), MSFT (9.61%), GOOGL (5.81%), AMZN (5.16%). Only by XLV: JNJ (10.38%), ABBV (7.42%), MRK (6.04%), UNH (5.82%), AMGN (3.80%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-07-31. Top 12 common positions shown.
Year-by-year returns
| Year | VUG | XLV |
|---|---|---|
| 2022 | -33.2% | -2.1% |
| 2023 | +46.8% | +2.1% |
| 2024 | +32.7% | +2.5% |
| 2025 | +19.4% | +14.5% |
| 2026 | +9.6% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VUG and XLV good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.25 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between VUG and XLV?
As of 2026-08-27, the correlation of weekly returns between VUG and XLV is 0.25 over 3 years, -0.08 over 1 year and 0.45 over 5 years.
Is XLV a good diversifier for VUG?
Yes, to a useful degree: a correlation of 0.25 leaves real independence between the two, which historically damped combined volatility.
How much do VUG and XLV overlap?
4.5% by weight, across 12 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-xlv.json
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[](https://www.pairbook.io/pair/vug-vs-xlv/)
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Hubs: VUG correlations · XLV correlations
