XLV vs ZTS: Correlation
Health Care Select Sector SPDR Fund (XLV) and Zoetis (ZTS) show a moderate relationship: their 3-year correlation of weekly returns is 0.41.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are XLV and ZTS?
Over the past 3 years, XLV and ZTS moved with a correlation of 0.41, which is moderate. Recent behaviour matches the longer record: 0.31 over 1 year against 0.41 over 3. Over 5 years the correlation is 0.53, and the annualized covariance of weekly returns is 179.3 %².
Among the 130 assets we track against XLV, ZTS ranks #77 by 3-year correlation. The last year tells two different stories: XLV led by 78.3 percentage points, +27.5% for XLV against -50.8% for ZTS. On a rolling one-year basis the correlation drifted between 0.30 and 0.70, a moderate band. Note the risk asymmetry: ZTS runs 2.0 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 ZTS: side by side
| XLV (Health Care Select Sector SPDR Fund) | ZTS (Zoetis) | |
|---|---|---|
| 1-year return | +27.5% | -50.8% |
| 5-year return | +37.4% | -61.5% |
| Volatility (ann.) | 14.7% | 30.1% |
| Beta vs S&P 500 | 0.42 | 0.51 |
| Max drawdown (3Y) | -17.1% | -63.0% |
| Market cap | – | $31.0B |
| P/E (trailing) | – | 12.7 |
| Dividend yield | 1.56% | 2.66% |
| Expense ratio | 0.08% | – |
| Assets under management | $41.7B | – |
| Sector / category | Sector ETF | Health Care |
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.
Year-by-year returns
| Year | XLV | ZTS |
|---|---|---|
| 2022 | -2.1% | -39.5% |
| 2023 | +2.1% | +35.9% |
| 2024 | +2.5% | -16.6% |
| 2025 | +14.5% | -21.8% |
| 2026 | +11.8% | -39.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
ZTS represents 0.52% of XLV's portfolio, so part of any move in XLV is ZTS itself, and the correlation between them is partly mechanical.
Are XLV and ZTS good diversifiers for each other?
A fair diversifier. At 0.41, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between XLV and ZTS?
As of 2026-08-27, the correlation of weekly returns between XLV and ZTS is 0.41 over 3 years, 0.31 over 1 year and 0.53 over 5 years.
Is ZTS a good diversifier for XLV?
A fair diversifier. At 0.41, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.41 mean?
On the −1 to +1 scale, 0.41 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/xlv-vs-zts.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/xlv-vs-zts/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: XLV correlations · ZTS correlations
