VYM vs XLC: 3% overlap

Vanguard High Dividend Yield ETF and Communication Services Select Sector SPDR Fund share 3.1% 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
3.1%
VYM expense ratio
0.04%
XLC expense ratio
0.08%

Top shared holdings

VYM and XLC hold 9 of the same securities. The ten contributing most to the overlap figure:

Holdingin VYMin XLCΔ
VZ0.7%4.6%3.8%
DIS0.7%4.3%3.6%
T0.6%4.9%4.3%
CMCSA0.4%4.2%3.8%
TMUS0.3%4.5%4.2%
CASH0.5%0.2%0.3%
OMC0.1%4.2%4.1%
FOXA0.0%2.1%2.0%
FOX0.0%1.3%1.3%

Where VYM and XLC 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.

SectorVYMXLCΔ
Communication Services3.1%99.8%96.8pp
Financials20.9%0.0%+20.9pp
Information Technology16.7%0.0%+16.7pp
Industrials13.2%0.0%+13.2pp
Health Care13.1%0.0%+13.1pp
Energy8.5%0.0%+8.5pp
Consumer Staples8.0%0.0%+8.0pp
Consumer Discretionary6.4%0.0%+6.4pp

Δ is VYM minus XLC, 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 VYM
597 positions

96.6% of VYM by weight, held in no part of XLC.

Only in XLC
15 positions

69.8% of XLC by weight, held in no part of VYM.

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

Concentration and cost

VYMXLC
Top 10 holdings26.0%68.6%
Positions held60625
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 VYM and XLC overlap?

VYM and XLC overlap 3.1% by portfolio weight — largely distinct portfolios. They share 9 holdings. The figure comes from current issuer holdings files (VYM as of 2026-06-30, XLC as of 2026-07-23).

How is the overlap between VYM and XLC calculated?

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

That depends on your goals — we state facts, not advice. At 3.1% overlap, each fund still contributes meaningfully distinct exposure.

What does VYM own that XLC doesn't?

VYM holds 606 positions and XLC holds 25; 597 of VYM's positions don't appear in XLC at all, and they are 96.6% of VYM by weight.

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