VFMO vs XLI: 12% overlap
Vanguard U.S. Momentum Factor ETF and Industrial Select Sector SPDR Fund share 11.9% of their portfolios by weight — computed as Σ min(wA, wB) over every holding both funds own.
Different holding dates. These holdings were published about 4 months apart — VFMO as of 2026-03-31, the rest through 2026-07-27. Each fund is compared using its most recent file, so any trading in between shows up as a difference.
You would hold two tickers and get the diversification of 1.9. Two funds that shared nothing would score 2.0; two identical funds score 1.0.
Top shared holdings
VFMO and XLI hold 31 of the same securities. The ten contributing most to the overlap figure:
| Holding | in VFMO | in XLI | Δ |
|---|---|---|---|
| GEV | 1.1% | 4.7% | 3.6% |
| VRT | 0.9% | 1.9% | 1.0% |
| HWM | 0.9% | 2.0% | 1.2% |
| CAT | 0.8% | 7.1% | 6.3% |
| RTX | 0.6% | 5.2% | 4.5% |
| NOC | 0.6% | 1.3% | 0.7% |
| GE | 0.6% | 6.6% | 6.0% |
| LMT | 0.6% | 2.1% | 1.5% |
| CMI | 0.6% | 1.6% | 1.1% |
| JCI | 0.5% | 1.5% | 1.0% |
Where VFMO and XLI 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 | VFMO | XLI | Δ |
|---|---|---|---|
| Industrials | 24.4% | 99.9% | −75.5pp |
| Health Care | 22.3% | 0.0% | +22.3pp |
| Information Technology | 17.0% | 0.0% | +17.0pp |
| Consumer Discretionary | 7.8% | 0.0% | +7.8pp |
| Energy | 7.7% | 0.0% | +7.7pp |
| Financials | 6.3% | 0.0% | +6.3pp |
| Materials | 6.2% | 0.0% | +6.2pp |
| Communication Services | 3.4% | 0.0% | +3.4pp |
Δ is VFMO minus XLI, 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
86.7% of VFMO by weight, held in no part of XLI.
46.3% of XLI by weight, held in no part of VFMO.
A large count with a small weight is the usual shape: the positions one fund adds are typically its smallest ones.
Concentration and cost
| VFMO | XLI | |
|---|---|---|
| Top 10 holdings | 10.2% | 39.7% |
| Positions held | 672 | 83 |
| Cost per $10,000 held, per year | $13 | $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 VFMO and XLI overlap?
VFMO and XLI overlap 11.9% by portfolio weight — largely distinct portfolios. They share 31 holdings. The figure comes from current issuer holdings files (VFMO as of 2026-03-31, XLI as of 2026-07-27).
How is the overlap between VFMO and XLI calculated?
As the sum of the smaller weight in each fund, over every holding both funds own: Σ min(wA, wB). If VFMO holds a stock at 6% and XLI 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 VFMO and XLI?
That depends on your goals — we state facts, not advice. At 11.9% overlap, each fund still contributes meaningfully distinct exposure.
What does VFMO own that XLI doesn't?
VFMO holds 672 positions and XLI holds 83; 641 of VFMO's positions don't appear in XLI at all, and they are 86.7% of VFMO by weight.
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Related comparisons
Sources: issuer holdings files, VFMO as of 2026-03-31, XLI as of 2026-07-27. Weights are fractions of each fund. Diagnostics, not advice.