XLB vs XLV: Correlation & Overlap
Materials Select Sector SPDR Fund (XLB) and Health Care Select Sector SPDR Fund (XLV) show a moderate relationship: their 3-year correlation of weekly returns is 0.58. Looking through to holdings, 0% 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 XLB and XLV?
Over the past 3 years, XLB and XLV moved with a correlation of 0.58, which is moderate. The link has loosened recently: the 1-year correlation (0.45) runs below the 3-year figure (0.58). Over 5 years the correlation is 0.59, and the annualized covariance of weekly returns is 142.7 %².
Among the 140 assets we track against XLB, XLV ranks #77 by 3-year correlation. On 12-month performance XLV holds a 9.9-point edge, +17.6% against +27.5%. The rolling one-year correlation moved between 0.46 and 0.73 over the past three years, a moderate range.
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.
XLB vs XLV: side by side
| XLB (Materials Select Sector SPDR Fund) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +17.6% | +27.5% |
| 5-year return | +36.9% | +37.4% |
| Volatility (ann.) | 16.7% | 14.7% |
| Beta vs S&P 500 | 0.72 | 0.42 |
| Max drawdown (3Y) | -23.2% | -17.1% |
| Dividend yield | 1.68% | 1.56% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $8.3B | $41.7B |
| Sector / category | Sector ETF | Sector ETF |
On the fund side, XLB sits in the Natural Resources category at State Street Investment Management, with $8.3B under management, 26 holdings, a 0.08% expense ratio, a 1.68% 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 XLB and XLV
The two portfolios are largely distinct, with 0 holdings in common adding up to 0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by XLB: LIN (12.94%), NEM (8.02%), FCX (6.48%), SHW (4.87%), ECL (4.80%). Only by XLV: LLY (15.03%), JNJ (10.38%), ABBV (7.42%), MRK (6.04%), UNH (5.82%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | XLB | XLV |
|---|---|---|
| 2022 | -12.3% | -2.1% |
| 2023 | +12.5% | +2.1% |
| 2024 | +0.1% | +2.5% |
| 2025 | +9.9% | +14.5% |
| 2026 | +18.3% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLB and XLV good diversifiers for each other?
To a limited degree. At 0.58 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between XLB and XLV?
Using weekly returns as of 2026-08-27: 0.58 over 3 years, with 0.45 over the last year and 0.59 over 5 years.
Is XLV a good diversifier for XLB?
To a limited degree. At 0.58 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do XLB and XLV overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/xlb-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/xlb-vs-xlv/)
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Hubs: XLB correlations · XLV correlations
