IEFA vs XLY: 0% overlap

iShares Core MSCI EAFE ETF and Consumer Discretionary Select Sector SPDR Fund share 0.2% of their portfolios by weight — computed as Σ min(wA, wB) over every holding both funds own.

Hold both, 50/50
2.0Effective Funds

You would hold two tickers and get the diversification of 2.0. Two funds that shared nothing would score 2.0; two identical funds score 1.0.

Overlap
0.2%
IEFA expense ratio
0.07%
XLY expense ratio
0.08%

Top shared holdings

IEFA and XLY hold 5 of the same securities. The ten contributing most to the overlap figure:

Holdingin IEFAin XLYΔ
TSCO0.2%0.4%0.3%
CASH0.0%0.1%0.1%
BBY0.0%0.4%0.4%
PHM0.0%0.6%0.6%
HAS0.0%0.3%0.3%

Where IEFA and XLY differ

Sector weights as a share of each fund, ordered by the size of the gap rather than the size of the sector — two funds that overlap heavily still usually diverge somewhere.

SectorIEFAXLYΔ
Consumer Discretionary8.8%99.9%91.1pp
Financials24.2%0.0%+24.2pp
Industrials19.6%0.0%+19.6pp
Information Technology11.9%0.0%+11.9pp
Health Care7.6%0.0%+7.6pp
Consumer Staples6.7%0.0%+6.7pp
Materials6.4%0.0%+6.4pp
Utilities4.2%0.0%+4.2pp

Δ is IEFA minus XLY, in percentage points. Sector data is not published by every issuer, so “Unclassified” is a real category rather than a gap in the table.

What each fund holds alone

Only in IEFA
2,561 positions

99.3% of IEFA by weight, held in no part of XLY.

Only in XLY
43 positions

98.1% of XLY by weight, held in no part of IEFA.

A large count with a small weight is the usual shape: the positions one fund adds are typically its smallest ones.

Concentration and cost

IEFAXLY
Top 10 holdings12.5%68.0%
Positions held2,56749
Cost per $10,000 held, per year$7$8

Cost is the expense ratio applied to $10,000; it excludes any brokerage commission, bid-ask spread or tax consequence. Figures are facts about the funds, not a suggestion about which to hold.

Frequently asked

How much do IEFA and XLY overlap?

IEFA and XLY overlap 0.2% by portfolio weight — largely distinct portfolios. They share 5 holdings. The figure comes from current issuer holdings files (IEFA as of 2026-07-23, XLY as of 2026-07-23).

How is the overlap between IEFA and XLY calculated?

As the sum of the smaller weight in each fund, over every holding both funds own: Σ min(wA, wB). If IEFA holds a stock at 6% and XLY holds the same stock at 4%, 4% counts as shared. The result is bounded between 0% and 100%, and it is computed after looking through any fund-of-funds to the underlying holdings.

Is it redundant to hold both IEFA and XLY?

That depends on your goals — we state facts, not advice. At 0.2% overlap, each fund still contributes meaningfully distinct exposure.

What does IEFA own that XLY doesn't?

IEFA holds 2,567 positions and XLY holds 49; 2,561 of IEFA's positions don't appear in XLY at all, and they are 99.3% of IEFA by weight.

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Related comparisons

Sources: issuer holdings files, IEFA as of 2026-07-23, XLY as of 2026-07-23. Weights are fractions of each fund. Diagnostics, not advice.