VTI vs XLB: 2% overlap

Vanguard Total Stock Market ETF and Materials Select Sector SPDR Fund share 1.7% 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
1.7%
VTI expense ratio
0.03%
XLB expense ratio
0.08%

Top shared holdings

VTI and XLB hold 26 of the same securities. The ten contributing most to the overlap figure:

Holdingin VTIin XLBΔ
LIN0.3%13.9%13.5%
NEM0.1%6.0%5.9%
FCX0.1%5.4%5.3%
SHW0.1%4.5%4.4%
CASH0.6%0.1%0.5%
CRH0.1%4.3%4.2%
ECL0.1%4.5%4.4%
APD0.1%4.7%4.6%
CTVA0.1%5.3%5.2%
NUE0.1%4.2%4.2%

Where VTI and XLB 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.

SectorVTIXLBΔ
Materials2.0%99.8%97.8pp
Information Technology35.2%0.0%+35.2pp
Financials11.9%0.0%+11.9pp
Industrials10.4%0.0%+10.4pp
Health Care9.5%0.0%+9.5pp
Consumer Discretionary9.2%0.0%+9.2pp
Communication Services9.1%0.0%+9.1pp
Consumer Staples4.3%0.0%+4.3pp

Δ is VTI minus XLB, 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 VTI
3,469 positions

97.8% of VTI by weight, held in no part of XLB.

Only in XLB
1 positions

2.7% of XLB by weight, held in no part of VTI.

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

Concentration and cost

VTIXLB
Top 10 holdings31.9%57.4%
Positions held3,49528
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 VTI and XLB overlap?

VTI and XLB overlap 1.7% by portfolio weight — largely distinct portfolios. They share 26 holdings. The figure comes from current issuer holdings files (VTI as of 2026-06-30, XLB as of 2026-07-23).

How is the overlap between VTI and XLB calculated?

As the sum of the smaller weight in each fund, over every holding both funds own: Σ min(wA, wB). If VTI holds a stock at 6% and XLB 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 VTI and XLB?

That depends on your goals — we state facts, not advice. At 1.7% overlap, each fund still contributes meaningfully distinct exposure.

What does VTI own that XLB doesn't?

VTI holds 3,495 positions and XLB holds 28; 3,469 of VTI's positions don't appear in XLB at all, and they are 97.8% of VTI by weight.

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Related comparisons

Sources: issuer holdings files, VTI as of 2026-06-30, XLB as of 2026-07-23. Weights are fractions of each fund. Diagnostics, not advice.