Does XLE diversify a portfolio of VOO 60%, QQQ 20% and VXUS 20%?

What the answer measures
VOO 60QQQ 20VXUS 20
XLE
Up to six ETFs. Add a weight after a colon to every ETF, or to none: VOO:60, or an amount such as VOO:25000, which the address turns into a weight. The answer measures the weekly correlation of the large US ETFs of the list below with them, the lowest first.Name up to six ETFs a side. Add a weight after a colon to every ETF you hold, or to none: QQQ:40, or an amount such as QQQ:25000, which the address turns into a weight. Without weights the ETFs count equally.

The overlap of XLE with VOO 60%, QQQ 20% and VXUS 20% is 2.2% by weight, by the issuer files of 2026-08-31 for VOO and VXUS, and 2026-10-12 for QQQ and XLE; their weekly returns had a 0.13 correlation over 156 weeks to 2026-10-13, and 0.65 on the 60 weeks the portfolio fell.

Correlation measures how two ETFs move together: 1 means always together, 0 means no link, below 0 means opposite. Overlap measures how much of an ETF's weight is in companies you already hold, counted at the smaller weight.

Edited by VoidLab Data through Last revised

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How does XLE compare with your portfolio?

Numbered by the ranking: the lowest overlap first, then the lowest weekly correlation.

1XLE

Energy Select Sector SPDR Fund

0.13weekly correlation with your portfolio

Moved almost independently of your portfolio

  • Overlap with your portfolio2.2% by weight
  • When your portfolio fell0.65 correlation over the 60 weeks your portfolio fell: it moved mostly with it
  • With 10% in it13.5% volatility, instead of 14.5% without it

How did $100 grow in the portfolio and XLE?

The same 156 weeks for every line, to 2026-10-13. Where a coloured line moves differently from the black one, that ETF moved differently from your portfolio.

$100 in the portfolio became $194 over the 156 weeks from 2023-10-20 to 2026-10-13; in XLE $161. Each line compounds the weekly returns the correlations are measured on.

How did XLE move against VOO 60%, QQQ 20% and VXUS 20%, week by week?

Each dot is one of the 156 weeks to 2026-10-13. Its position across is the weekly return of VOO 60%, QQQ 20% and VXUS 20%, and its height is the weekly return of the ETF named on the panel.

  • The 60 down weeks, when your ETFs fell (left of the zero line)
  • The other 96 weeks

XLE

Correlation 0.13, on down weeks 0.65

The panels use the same weeks and weekly returns as the correlations above. In every panel, the scale across runs from -10% to +10% and the scale up from -20% to +20%. The weekly returns come from the fund files of VOO, QQQ, VXUS and XLE.

How does XLE compare, figure by figure?

ETFOverlapby weightWeekly correlation156 weeksOn down weeks60 weeksMega-cap techLargest sectorLargest countryoutside the US
XLEEnergy Select Sector SPDR Fund2.2%0.130.650.0%Energy 99.8%None, 99.8% US
Mega-cap tech
0.0%
Largest sector
Energy 99.8%
Largest outside the US
None, 99.8% US
VOO, QQQ, VXUSYoursyour ETFs, at your weights29.9%Technology 37.5%Japan 3.1%
Mega-cap tech
29.9%
Largest sector
Technology 37.5%
Largest outside the US
Japan 3.1%

Sorted by overlap, then by weekly correlation, lowest first. Bold: the lowest of its column, when they differ. Holdings files: VOO 2026-08-31, QQQ 2026-10-12, VXUS 2026-08-31, XLE 2026-10-12. Weekly returns over the 156 weeks to 2026-10-13; down weeks are the 60 weeks their combined return was below zero.

  • With 10% in XLE and 90% in VOO, QQQ and VXUS at their weights, the portfolio's annualised weekly volatility over the 156 weeks to 2026-10-13 would have been 13.5% instead of 14.5%.

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Questions and answers

How much of XLE is in companies VOO 60%, QQQ 20% and VXUS 20% also hold?
100.0% of XLE's weight is in 21 holdings they also hold (by ticker); counted at the smaller of the two weights, the overlap is 2.2%. XOM, CVX and COP account for 0.61, 0.35 and 0.15 points of it. XLE holdings of 2026-10-12.
How much of XLE is in mega-cap tech, and how much of VOO 60%, QQQ 20% and VXUS 20%?
XLE 0.0%; VOO 60%, QQQ 20% and VXUS 20% hold 29.9%.
How much of XLE is in the United States, and how much of VOO 60%, QQQ 20% and VXUS 20%?
XLE: 99.8% in the United States (holdings of 2026-10-12). VOO 60%, QQQ 20% and VXUS 20% hold 79.3% there.

How each figure is measured, and the order of the table: how the numbers are produced.

The 30 ETFs and the rule

From the ETFs of the list, leaving out any ETF the portfolio holds: in each group, the ETF whose weekly returns had the lowest correlation with the portfolio's over the weeks both have, up to 156, compared before rounding; the answer opens on the 3 groups whose lowest is lowest, and an exact tie keeps the order of the list.

US stocks
VTI, RSP, QQQ, VTV, SCHD, VO, IWM, AVUV, USMV, QUAL, MTUM
Sector stocks
XLU, XLP, XLV, XLE, VNQ, VNQI, IGF
International stocks
VXUS, VEA, AVDV
Emerging market stocks
VWO
Bonds
BND, SHY, IEF, TLT, TIP, LQD, HYG
Commodities
GLD

Chosen on 2026-10-10: 30 large US ETFs across six kinds of exposure, one ETF per exposure, the same list for every portfolio. Left out on purpose: S&P 500 ETFs weighted by company size, near duplicates of VTI; sector ETFs for technology, financials, industrials, consumer discretionary, communication services and materials; Treasury bills; single commodities other than gold; gold miners; bitcoin; and leveraged, inverse and volatility products. The list and its weekly returns as one file: candidates.json.