XLV vs XLY: Correlation & Overlap
How closely do Health Care Select Sector SPDR Fund (XLV) and Consumer Discretionary Select Sector SPDR Fund (XLY) trade together? Their weekly returns over three years give a correlation of 0.30, which is moderate. 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 XLV and XLY?
Across a 3-year window, the weekly returns of XLV and XLY correlate at 0.30, moderate. The link has loosened recently: the 1-year correlation (0.09) runs below the 3-year figure (0.30). Stretching to 5 years gives 0.42, with an annualized covariance of 86.7 %².
Within XLV's tracked universe of 130 assets, XLY comes in at #99 by 3-year correlation. The last year tells two different stories: XLV led by 27.6 percentage points, +27.5% for XLV against -0.1% for XLY. On a rolling one-year basis the correlation drifted between 0.12 and 0.48, 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.
XLV vs XLY: side by side
| XLV (Health Care Select Sector SPDR Fund) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +27.5% | -0.1% |
| 5-year return | +37.4% | +31.8% |
| Volatility (ann.) | 14.7% | 19.7% |
| Beta vs S&P 500 | 0.42 | 1.15 |
| Max drawdown (3Y) | -17.1% | -26.0% |
| Dividend yield | 1.56% | 0.78% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $41.7B | $22.5B |
| Sector / category | Sector ETF | Sector ETF |
XLV, State Street Investment Management's Health fund, carries $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield. XLY is a Consumer Cyclical fund from State Street Investment Management: $22.5B under management, 47 holdings, a 0.08% expense ratio, a 0.78% trailing dividend yield.
Portfolio overlap between XLV and XLY
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 XLV: LLY (15.03%), JNJ (10.38%), ABBV (7.42%), MRK (6.04%), UNH (5.82%). Only by XLY: AMZN (24.32%), TSLA (16.18%), HD (5.54%), MCD (4.11%), BKNG (4.04%).
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 | XLV | XLY |
|---|---|---|
| 2022 | -2.1% | -36.3% |
| 2023 | +2.1% | +39.6% |
| 2024 | +2.5% | +26.5% |
| 2025 | +14.5% | +7.4% |
| 2026 | +11.8% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLV and XLY good diversifiers for each other?
Reasonably. At 0.30, XLV and XLY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between XLV and XLY?
Using weekly returns as of 2026-08-27: 0.30 over 3 years, with 0.09 over the last year and 0.42 over 5 years.
Is XLY a good diversifier for XLV?
Reasonably. At 0.30, XLV and XLY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do XLV and XLY overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
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Hubs: XLV correlations · XLY correlations
