XLI vs XLV: Correlation & Overlap
Measured on weekly returns over the past three years, Industrial Select Sector SPDR Fund (XLI) and Health Care Select Sector SPDR Fund (XLV) carry a correlation of 0.47, a moderate link. 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 XLI and XLV?
On 3 years of weekly data the XLI/XLV correlation comes out at 0.47, moderate. The past 12 months show a weaker link (0.23) than the 3-year average (0.47). The 5-year figure is 0.55, and annualized covariance runs at 108.1 %².
Within XLI's tracked universe of 204 assets, XLV comes in at #169 by 3-year correlation. Over the last 12 months XLV came out ahead by 9.2 percentage points (+18.3% against +27.5%). The rolling one-year correlation moved between 0.30 and 0.68 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.
XLI vs XLV: side by side
| XLI (Industrial Select Sector SPDR Fund) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +18.3% | +27.5% |
| 5-year return | +84.0% | +37.4% |
| Volatility (ann.) | 15.7% | 14.7% |
| Beta vs S&P 500 | 0.89 | 0.42 |
| Max drawdown (3Y) | -18.5% | -17.1% |
| Dividend yield | 1.15% | 1.56% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $32.9B | $41.7B |
| Sector / category | Sector ETF | Sector ETF |
XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% 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 XLI and XLV
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 XLI: CAT (6.68%), GE (6.52%), RTX (5.04%), GEV (4.52%), UNP (3.25%). 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 | XLI | XLV |
|---|---|---|
| 2022 | -5.6% | -2.1% |
| 2023 | +18.1% | +2.1% |
| 2024 | +17.3% | +2.5% |
| 2025 | +19.3% | +14.5% |
| 2026 | +15.9% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLI and XLV good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.47 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between XLI and XLV?
The XLI/XLV correlation stands at 0.47 on a 3-year window (1 year: 0.23, 5 years: 0.55), computed from weekly returns as of 2026-08-27.
Is XLV a good diversifier for XLI?
Yes, to a useful degree: a correlation of 0.47 leaves real independence between the two, which historically damped combined volatility.
How much do XLI and XLV overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
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Hubs: XLI correlations · XLV correlations
