XLRE vs XLV: Correlation & Overlap
How closely do Real Estate Select Sector SPDR Fund (XLRE) and Health Care Select Sector SPDR Fund (XLV) trade together? Their weekly returns over three years give a correlation of 0.53, which is moderate. 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 XLRE and XLV?
On 3 years of weekly data the XLRE/XLV correlation comes out at 0.53, moderate. Recent behaviour matches the longer record: 0.48 over 1 year against 0.53 over 3. The 5-year figure is 0.62, and annualized covariance runs at 131.1 %².
By 3-year correlation, XLV places #76 of the 116 assets tracked against XLRE. Correlation aside, the last 12 months split them widely, with XLV ahead by 18.0 points (+9.5% versus +27.5%). Stability stands out here, with the rolling one-year correlation confined to 0.45 through 0.63.
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.
XLRE vs XLV: side by side
| XLRE (Real Estate Select Sector SPDR Fund) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +9.5% | +27.5% |
| 5-year return | +11.4% | +37.4% |
| Volatility (ann.) | 16.7% | 14.7% |
| Beta vs S&P 500 | 0.57 | 0.42 |
| Max drawdown (3Y) | -16.6% | -17.1% |
| Dividend yield | 3.12% | 1.56% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $8.6B | $41.7B |
| Sector / category | Sector ETF | Sector ETF |
On the fund side, XLRE sits in the Real Estate category at State Street Investment Management, with $8.6B under management, 31 holdings, a 0.08% expense ratio, a 3.12% 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 XLRE 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 XLRE: WELL (11.43%), PLD (9.06%), EQIX (7.14%), AMT (5.49%), DLR (5.01%). 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 | XLRE | XLV |
|---|---|---|
| 2022 | -26.2% | -2.1% |
| 2023 | +12.4% | +2.1% |
| 2024 | +5.1% | +2.5% |
| 2025 | +2.6% | +14.5% |
| 2026 | +12.4% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLRE and XLV good diversifiers for each other?
Only partially. A correlation of 0.53 means XLRE and XLV share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between XLRE and XLV?
The XLRE/XLV correlation stands at 0.53 on a 3-year window (1 year: 0.48, 5 years: 0.62), computed from weekly returns as of 2026-08-27.
Is XLV a good diversifier for XLRE?
Only partially. A correlation of 0.53 means XLRE and XLV share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do XLRE 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/xlre-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/xlre-vs-xlv/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: XLRE correlations · XLV correlations
