VWO vs XLF: 0% overlap

Vanguard FTSE Emerging Markets ETF and Financial Select Sector SPDR Fund share 0.1% 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
0.1%
VWO expense ratio
0.06%
XLF expense ratio
0.08%

Top shared holdings

VWO and XLF hold 1 of the same securities. The ten contributing most to the overlap figure:

Holdingin VWOin XLFΔ
CASH4.2%0.1%4.1%

Where VWO and XLF 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.

SectorVWOXLFΔ
Financials17.2%99.9%82.7pp
Information Technology31.6%0.0%+31.6pp
Unclassified9.3%0.0%+9.3pp
Consumer Discretionary7.9%0.0%+7.9pp
Industrials5.9%0.0%+5.9pp
Materials5.7%0.0%+5.7pp
Communication Services5.4%0.0%+5.4pp
Cash and/or Derivatives4.2%0.1%+4.1pp

Δ is VWO minus XLF, 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 VWO
5,002 positions

95.8% of VWO by weight, held in no part of XLF.

Only in XLF
76 positions

99.9% of XLF by weight, held in no part of VWO.

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

Concentration and cost

VWOXLF
Top 10 holdings30.3%57.0%
Positions held5,00378
Cost per $10,000 held, per year$6$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 VWO and XLF overlap?

VWO and XLF overlap 0.1% by portfolio weight — largely distinct portfolios. They share 1 holdings. The figure comes from current issuer holdings files (VWO as of 2026-06-30, XLF as of 2026-07-23).

How is the overlap between VWO and XLF calculated?

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

That depends on your goals — we state facts, not advice. At 0.1% overlap, each fund still contributes meaningfully distinct exposure.

What does VWO own that XLF doesn't?

VWO holds 5,003 positions and XLF holds 78; 5,002 of VWO's positions don't appear in XLF at all, and they are 95.8% of VWO by weight.

You probably hold more than two funds

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Related comparisons

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