XLP vs XLV: Correlation & Overlap
Measured on weekly returns over the past three years, Consumer Staples Select Sector SPDR Fund (XLP) and Health Care Select Sector SPDR Fund (XLV) carry a correlation of 0.48, 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 XLP and XLV?
Across a 3-year window, the weekly returns of XLP and XLV correlate at 0.48, moderate. The relationship has been stable: the 1-year correlation (0.47) sits close to the 3-year figure. Stretching to 5 years gives 0.59, with an annualized covariance of 79.3 %².
Among the 110 assets we track against XLP, XLV ranks #44 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLV ahead by 19.2 points (+8.3% versus +27.5%). On a rolling one-year basis the correlation drifted between 0.33 and 0.79, 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.
XLP vs XLV: side by side
| XLP (Consumer Staples Select Sector SPDR Fund) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +8.3% | +27.5% |
| 5-year return | +34.7% | +37.4% |
| Volatility (ann.) | 11.1% | 14.7% |
| Beta vs S&P 500 | 0.23 | 0.42 |
| Max drawdown (3Y) | -9.7% | -17.1% |
| Dividend yield | 2.58% | 1.56% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $14.6B | $41.7B |
| Sector / category | Sector ETF | Sector ETF |
XLP, State Street Investment Management's Consumer Defensive fund, carries $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% 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 XLP 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 XLP: WMT (9.62%), COST (8.92%), KO (7.34%), PG (7.10%), PM (6.36%). 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 | XLP | XLV |
|---|---|---|
| 2022 | -0.8% | -2.1% |
| 2023 | -0.8% | +2.1% |
| 2024 | +12.2% | +2.5% |
| 2025 | +1.5% | +14.5% |
| 2026 | +10.9% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLP and XLV good diversifiers for each other?
Reasonably. At 0.48, XLP and XLV keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between XLP and XLV?
As of 2026-08-27, the correlation of weekly returns between XLP and XLV is 0.48 over 3 years, 0.47 over 1 year and 0.59 over 5 years.
Is XLV a good diversifier for XLP?
Reasonably. At 0.48, XLP and XLV keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do XLP and XLV overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
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