XLF vs XLV: Correlation & Overlap
Measured on weekly returns over the past three years, Financial Select Sector SPDR Fund (XLF) and Health Care Select Sector SPDR Fund (XLV) carry a correlation of 0.46, a moderate link. The two funds also share 0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are XLF and XLV?
On 3 years of weekly data the XLF/XLV correlation comes out at 0.46, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.27 versus 0.46 over 3 years. The 5-year figure is 0.54, and annualized covariance runs at 110.4 %².
Among the 169 assets we track against XLF, XLV ranks #129 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLV ahead by 18.2 points (+9.3% versus +27.5%). The rolling one-year correlation moved between 0.32 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.
XLF vs XLV: side by side
| XLF (Financial Select Sector SPDR Fund) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +9.3% | +27.5% |
| 5-year return | +64.2% | +37.4% |
| Volatility (ann.) | 16.2% | 14.7% |
| Beta vs S&P 500 | 0.84 | 0.42 |
| Max drawdown (3Y) | -15.5% | -17.1% |
| Dividend yield | 1.42% | 1.56% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $57.9B | $41.7B |
| Sector / category | Sector ETF | Sector ETF |
XLF, State Street Investment Management's Financial fund, carries $57.9B under management, 77 holdings, a 0.08% expense ratio, a 1.42% 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 XLF 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 XLF: JPM (11.61%), BRK.B (11.25%), V (7.74%), MA (5.87%), BAC (4.94%). 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 | XLF | XLV |
|---|---|---|
| 2022 | -10.6% | -2.1% |
| 2023 | +12.0% | +2.1% |
| 2024 | +30.6% | +2.5% |
| 2025 | +14.9% | +14.5% |
| 2026 | +6.6% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLF and XLV good diversifiers for each other?
A fair diversifier. At 0.46, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between XLF and XLV?
Using weekly returns as of 2026-08-27: 0.46 over 3 years, with 0.27 over the last year and 0.54 over 5 years.
Is XLV a good diversifier for XLF?
A fair diversifier. At 0.46, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do XLF 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/xlf-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/xlf-vs-xlv/)
Free with attribution; caching and terms are described in the API documentation.
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Hubs: XLF correlations · XLV correlations
