VEA vs XLU: 1% overlap
Vanguard FTSE Developed Markets ETF and Utilities Select Sector SPDR Fund share 0.7% of their portfolios by weight — computed as Σ min(wA, wB) over every holding both funds own.
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.
Top shared holdings
VEA and XLU hold 4 of the same securities. The ten contributing most to the overlap figure:
| Holding | in VEA | in XLU | Δ |
|---|---|---|---|
| CASH | 1.4% | 0.3% | 1.0% |
| DTE | 0.3% | 2.1% | 1.8% |
| PPL | 0.1% | 1.9% | 1.8% |
| SRE | 0.0% | 4.2% | 4.2% |
Where VEA and XLU 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.
| Sector | VEA | XLU | Δ |
|---|---|---|---|
| Utilities | 3.3% | 99.7% | −96.3pp |
| Financials | 20.7% | 0.0% | +20.7pp |
| Information Technology | 17.1% | 0.0% | +17.1pp |
| Industrials | 16.9% | 0.0% | +16.9pp |
| Unclassified | 8.9% | 0.0% | +8.9pp |
| Consumer Discretionary | 7.3% | 0.0% | +7.3pp |
| Health Care | 6.2% | 0.0% | +6.2pp |
| Consumer Staples | 5.6% | 0.0% | +5.6pp |
Δ is VEA minus XLU, 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
98.3% of VEA by weight, held in no part of XLU.
91.4% of XLU by weight, held in no part of VEA.
A large count with a small weight is the usual shape: the positions one fund adds are typically its smallest ones.
Concentration and cost
| VEA | XLU | |
|---|---|---|
| Top 10 holdings | 15.2% | 58.0% |
| Positions held | 3,792 | 33 |
| Cost per $10,000 held, per year | $3 | $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 VEA and XLU overlap?
VEA and XLU overlap 0.7% by portfolio weight — largely distinct portfolios. They share 4 holdings. The figure comes from current issuer holdings files (VEA as of 2026-06-30, XLU as of 2026-07-23).
How is the overlap between VEA and XLU calculated?
As the sum of the smaller weight in each fund, over every holding both funds own: Σ min(wA, wB). If VEA holds a stock at 6% and XLU 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 VEA and XLU?
That depends on your goals — we state facts, not advice. At 0.7% overlap, each fund still contributes meaningfully distinct exposure.
What does VEA own that XLU doesn't?
VEA holds 3,792 positions and XLU holds 33; 3,788 of VEA's positions don't appear in XLU at all, and they are 98.3% of VEA by weight.
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Related comparisons
Sources: issuer holdings files, VEA as of 2026-06-30, XLU as of 2026-07-23. Weights are fractions of each fund. Diagnostics, not advice.