XLC vs XLV: Correlation & Overlap
Measured on weekly returns over the past three years, Communication Services Select Sector SPDR Fund (XLC) and Health Care Select Sector SPDR Fund (XLV) carry a correlation of 0.33, a moderate link. 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 XLC and XLV?
Over the past 3 years, XLC and XLV moved with a correlation of 0.33, which is moderate. The link has loosened recently: the 1-year correlation (0.04) runs below the 3-year figure (0.33). Over 5 years the correlation is 0.45, and the annualized covariance of weekly returns is 78.2 %².
By 3-year correlation, XLV places #73 of the 91 assets tracked against XLC. Their recent paths diverged sharply: over the last 12 months XLV outperformed by 26.0 percentage points (+1.5% for XLC against +27.5% for XLV). Across three years, the rolling one-year figure varied moderately, from 0.11 to 0.58.
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.
XLC vs XLV: side by side
| XLC (Communication Services Select Sector SPDR Fund) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +1.5% | +27.5% |
| 5-year return | +37.5% | +37.4% |
| Volatility (ann.) | 16.0% | 14.7% |
| Beta vs S&P 500 | 0.90 | 0.42 |
| Max drawdown (3Y) | -18.0% | -17.1% |
| Dividend yield | 1.32% | 1.56% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $21.7B | $41.7B |
| Sector / category | Sector ETF | Sector ETF |
On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% 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 XLC and XLV
The two portfolios are largely distinct: 0% of the funds' weight sits in the same underlying holdings (0 common positions). Correlation tells you they move together; overlap tells you why.
Largest positions held only by XLC: META (16.73%), GOOGL (10.29%), GOOG (8.22%), T (5.20%), VZ (4.99%). 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 | XLC | XLV |
|---|---|---|
| 2022 | -37.6% | -2.1% |
| 2023 | +52.8% | +2.1% |
| 2024 | +34.7% | +2.5% |
| 2025 | +23.1% | +14.5% |
| 2026 | -4.8% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLC and XLV good diversifiers for each other?
A fair diversifier. At 0.33, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between XLC and XLV?
The XLC/XLV correlation stands at 0.33 on a 3-year window (1 year: 0.04, 5 years: 0.45), computed from weekly returns as of 2026-08-27.
Is XLV a good diversifier for XLC?
A fair diversifier. At 0.33, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do XLC and XLV overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/xlc-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/xlc-vs-xlv/)
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Hubs: XLC correlations · XLV correlations
