VIG vs XLI: 11% overlap
Vanguard Dividend Appreciation ETF and Industrial Select Sector SPDR Fund share 10.7% 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 1.9. Two funds that shared nothing would score 2.0; two identical funds score 1.0.
Top shared holdings
VIG and XLI hold 39 of the same securities. The ten contributing most to the overlap figure:
| Holding | in VIG | in XLI | Δ |
|---|---|---|---|
| CAT | 2.1% | 7.3% | 5.1% |
| ETN | 0.7% | 2.9% | 2.1% |
| UNP | 0.7% | 3.2% | 2.5% |
| LMT | 0.5% | 2.0% | 1.6% |
| CMI | 0.4% | 1.6% | 1.2% |
| GD | 0.4% | 1.7% | 1.3% |
| ADP | 0.4% | 1.7% | 1.3% |
| CSX | 0.4% | 1.7% | 1.4% |
| WM | 0.4% | 1.6% | 1.2% |
| EMR | 0.3% | 1.4% | 1.1% |
Where VIG 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 | VIG | XLI | Δ |
|---|---|---|---|
| Industrials | 12.2% | 99.9% | −87.8pp |
| Information Technology | 26.3% | 0.0% | +26.3pp |
| Financials | 20.2% | 0.0% | +20.2pp |
| Health Care | 17.7% | 0.0% | +17.7pp |
| Consumer Staples | 9.3% | 0.0% | +9.3pp |
| Consumer Discretionary | 4.3% | 0.0% | +4.3pp |
| Materials | 3.4% | 0.0% | +3.4pp |
| Utilities | 3.0% | 0.0% | +3.0pp |
Δ is VIG 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
88.7% of VIG by weight, held in no part of XLI.
57.2% of XLI by weight, held in no part of VIG.
A large count with a small weight is the usual shape: the positions one fund adds are typically its smallest ones.
Concentration and cost
| VIG | XLI | |
|---|---|---|
| Top 10 holdings | 31.9% | 40.0% |
| Positions held | 333 | 83 |
| Cost per $10,000 held, per year | $4 | $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 VIG and XLI overlap?
VIG and XLI overlap 10.7% by portfolio weight — largely distinct portfolios. They share 39 holdings. The figure comes from current issuer holdings files (VIG as of 2026-06-30, XLI as of 2026-07-23).
How is the overlap between VIG and XLI calculated?
As the sum of the smaller weight in each fund, over every holding both funds own: Σ min(wA, wB). If VIG 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 VIG and XLI?
That depends on your goals — we state facts, not advice. At 10.7% overlap, each fund still contributes meaningfully distinct exposure.
What does VIG own that XLI doesn't?
VIG holds 333 positions and XLI holds 83; 294 of VIG's positions don't appear in XLI at all, and they are 88.7% of VIG by weight.
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Related comparisons
Sources: issuer holdings files, VIG as of 2026-06-30, XLI as of 2026-07-23. Weights are fractions of each fund. Diagnostics, not advice.