VYM vs XLRE: Correlation & Overlap
How closely do Vanguard High Dividend Yield ETF (VYM) and Real Estate Select Sector SPDR Fund (XLRE) trade together? Their weekly returns over three years give a correlation of 0.69, which is strong. By holdings, the two funds overlap 0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VYM and XLRE?
Over the past 3 years, VYM and XLRE moved with a correlation of 0.69, which is strong. Little has changed lately, as the 1-year reading of 0.60 lands near the 3-year figure. Over 5 years the correlation is 0.73, and the annualized covariance of weekly returns is 142.2 %².
By 3-year correlation, XLRE places #42 of the 122 assets tracked against VYM. On 12-month performance VYM holds a 11.6-point edge, +21.1% against +9.5%. On a rolling one-year basis the correlation drifted between 0.57 and 0.83, a moderate band.
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.
VYM vs XLRE: side by side
| VYM (Vanguard High Dividend Yield ETF) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +21.1% | +9.5% |
| 5-year return | +76.6% | +11.4% |
| Volatility (ann.) | 12.3% | 16.7% |
| Beta vs S&P 500 | 0.69 | 0.57 |
| Max drawdown (3Y) | -14.5% | -16.6% |
| Dividend yield | 2.24% | 3.12% |
| Expense ratio | 0.04% | 0.08% |
| Assets under management | $99.2B | $8.6B |
| Sector / category | ETF · Dividend | Sector ETF |
VYM, Vanguard's Large Value fund, carries $99.2B under management, 604 holdings, a 0.04% expense ratio, a 2.24% trailing dividend yield. On the fund side, XLRE sits in the Real Estate category at State Street Investment Management, with $8.6B under management, 31 holdings, a 0.08% expense ratio, a 3.12% trailing dividend yield.
Portfolio overlap between VYM and XLRE
The two portfolios are largely distinct. Weighing the shared positions, 0% of the two funds is identical, spread across 0 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by VYM: AVGO (7.37%), JPM (3.83%), XOM (2.63%), JNJ (2.51%), CSCO (1.87%). Only by XLRE: WELL (11.43%), PLD (9.06%), EQIX (7.14%), AMT (5.49%), DLR (5.01%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-07-31.
Year-by-year returns
| Year | VYM | XLRE |
|---|---|---|
| 2022 | -0.4% | -26.2% |
| 2023 | +6.6% | +12.4% |
| 2024 | +17.6% | +5.1% |
| 2025 | +15.4% | +2.6% |
| 2026 | +15.9% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VYM and XLRE good diversifiers for each other?
Somewhat, no more. With 0.69 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between VYM and XLRE?
The VYM/XLRE correlation stands at 0.69 on a 3-year window (1 year: 0.60, 5 years: 0.73), computed from weekly returns as of 2026-08-27.
Is XLRE a good diversifier for VYM?
Somewhat, no more. With 0.69 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do VYM and XLRE overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-07-31.
Use this data
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Related comparisons
Hubs: VYM correlations · XLRE correlations
