VSMAX vs XLY: 2% overlap
Vanguard Small-Cap Index Admiral and Consumer Discretionary Select Sector SPDR Fund share 2.5% 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
VSMAX and XLY hold 16 of the same securities. The ten contributing most to the overlap figure:
| Holding | in VSMAX | in XLY | Δ |
|---|---|---|---|
| TPR | 0.4% | 0.8% | 0.4% |
| WSM | 0.3% | 0.7% | 0.4% |
| GPC | 0.2% | 0.4% | 0.2% |
| BBY | 0.2% | 0.4% | 0.3% |
| RL | 0.2% | 0.4% | 0.2% |
| DECK | 0.2% | 0.4% | 0.2% |
| APTV | 0.2% | 0.3% | 0.2% |
| HAS | 0.1% | 0.3% | 0.2% |
| DPZ | 0.1% | 0.3% | 0.1% |
| NCLH | 0.1% | 0.2% | 0.1% |
Where VSMAX 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.
| Sector | VSMAX | XLY | Δ |
|---|---|---|---|
| Consumer Discretionary | 9.9% | 99.9% | −90.0pp |
| Industrials | 21.0% | 0.0% | +21.0pp |
| Information Technology | 16.1% | 0.0% | +16.1pp |
| Financials | 12.7% | 0.0% | +12.7pp |
| Health Care | 11.9% | 0.0% | +11.9pp |
| Real Estate | 7.1% | 0.0% | +7.1pp |
| Materials | 5.3% | 0.0% | +5.3pp |
| Energy | 3.7% | 0.0% | +3.7pp |
Δ is VSMAX 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
95.9% of VSMAX by weight, held in no part of XLY.
94.0% of XLY by weight, held in no part of VSMAX.
A large count with a small weight is the usual shape: the positions one fund adds are typically its smallest ones.
Concentration and cost
| VSMAX | XLY | |
|---|---|---|
| Top 10 holdings | 5.6% | 68.0% |
| Positions held | 1,308 | 49 |
| Cost per $10,000 held, per year | $5 | $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 VSMAX and XLY overlap?
VSMAX and XLY overlap 2.5% by portfolio weight — largely distinct portfolios. They share 16 holdings. The figure comes from current issuer holdings files (VSMAX as of 2026-06-30, XLY as of 2026-07-23).
How is the overlap between VSMAX and XLY calculated?
As the sum of the smaller weight in each fund, over every holding both funds own: Σ min(wA, wB). If VSMAX 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 VSMAX and XLY?
That depends on your goals — we state facts, not advice. At 2.5% overlap, each fund still contributes meaningfully distinct exposure.
What does VSMAX own that XLY doesn't?
VSMAX holds 1,308 positions and XLY holds 49; 1,292 of VSMAX's positions don't appear in XLY at all, and they are 95.9% of VSMAX by weight.
You probably hold more than two funds
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Related comparisons
Sources: issuer holdings files, VSMAX as of 2026-06-30, XLY as of 2026-07-23. Weights are fractions of each fund. Diagnostics, not advice.