# Which ETFs diversify VOO the most?

Over the 156 weeks to 2026-10-13, among 30 large US ETFs, the bond ETF with the lowest weekly correlation with VOO was SHY, at 0.03, the commodity ETF GLD, at 0.14, and the sector stock ETF XLE, at 0.17.

Correlation measures how two ETFs move together: 1 means always together, 0 means no link, below 0 means opposite.

Measurement, not investment advice.

## What are the top 3 ETFs that diversify VOO most?

### [SHY](https://tickerinside.com/etf/shy/), iShares 1-3 Year Treasury Bond ETF (Bonds)

- Correlation with VOO: 0.03. Moved almost independently of VOO.
- In VOO's 61 down weeks: -0.28, it tended to move the other way.
- With 10% in it, the portfolio's volatility would have been 12.7% instead of 14.1%.

### [GLD](https://tickerinside.com/etf/gld/), SPDR Gold Shares (Commodities)

- Correlation with VOO: 0.14. Moved almost independently of VOO.
- In VOO's 61 down weeks: 0.17, it moved almost independently.
- With 10% in it, the portfolio's volatility would have been 13.1% instead of 14.1%.

### [XLE](https://tickerinside.com/etf/xle/), Energy Select Sector SPDR Fund (Sector stocks)

- Correlation with VOO: 0.17. Moved almost independently of VOO.
- In VOO's 61 down weeks: 0.69, it moved mostly with it.
- With 10% in it, the portfolio's volatility would have been 13.3% instead of 14.1%.

Weekly returns over the 156 weeks to 2026-10-13; down weeks are the 61 weeks VOO's weekly return was below zero. Overlap by weight from the issuer files of 2026-08-31 to 2026-10-12.

## How did $100 grow in VOO, SHY, GLD and XLE?

$100 in VOO became $192 over the 156 weeks from 2023-10-20 to 2026-10-13; in SHY $112, in GLD $208 and in XLE $161. Each line compounds the weekly returns the correlations are measured on.

## How do the other 27 ETFs of the list compare?

The top 3 take one ETF per group; the others follow from 4, lowest correlation first.

| # | ETF | Group | Correlation | On down weeks |
|---:|---|---|---:|---:|
| 4 | [IEF](https://tickerinside.com/etf/ief/), iShares 7-10 Year Treasury Bond ETF | Bonds | 0.06 | -0.30 |
| 5 | [TLT](https://tickerinside.com/etf/tlt/), iShares 20+ Year Treasury Bond ETF | Bonds | 0.09 | -0.28 |
| 6 | [BND](https://tickerinside.com/etf/bnd/), Vanguard Total Bond Market ETF | Bonds | 0.16 | -0.23 |
| 7 | [TIP](https://tickerinside.com/etf/tip/), iShares TIPS Bond ETF | Bonds | 0.17 | -0.12 |
| 8 | [XLU](https://tickerinside.com/etf/xlu/), Utilities Select Sector SPDR Fund | Sector stocks | 0.22 | 0.19 |
| 9 | [LQD](https://tickerinside.com/etf/lqd/), iShares iBoxx Investment Grade Corporate Bond ETF | Bonds | 0.28 | -0.14 |
| 10 | [XLP](https://tickerinside.com/etf/xlp/), Consumer Staples Select Sector SPDR Fund | Sector stocks | 0.30 | 0.19 |
| 11 | [XLV](https://tickerinside.com/etf/xlv/), Health Care Select Sector SPDR Fund | Sector stocks | 0.41 | 0.30 |
| 12 | [IGF](https://tickerinside.com/etf/igf/), iShares Global Infrastructure ETF | Sector stocks | 0.47 | 0.35 |
| 13 | [VNQ](https://tickerinside.com/etf/vnq/), Vanguard Real Estate ETF | Sector stocks | 0.49 | 0.40 |
| 14 | [VNQI](https://tickerinside.com/etf/vnqi/), Vanguard Global ex-U.S. Real Estate ETF | Sector stocks | 0.56 | 0.30 |
| 15 | [SCHD](https://tickerinside.com/etf/schd/), Schwab US Dividend Equity ETF | US stocks | 0.58 | 0.61 |
| 16 | [AVUV](https://tickerinside.com/etf/avuv/), Avantis U.S. Small Cap Value ETF | US stocks | 0.66 | 0.61 |
| 17 | HYG, iShares iBoxx High Yield Corporate Bond ETF | Bonds | 0.68 | 0.48 |
| 18 | [AVDV](https://tickerinside.com/etf/avdv/), Avantis International Small Cap Value ETF | International stocks | 0.68 | 0.62 |
| 19 | [VWO](https://tickerinside.com/etf/vwo/), Vanguard FTSE Emerging Markets ETF | Emerging market stocks | 0.71 | 0.55 |
| 20 | [USMV](https://tickerinside.com/etf/usmv/), iShares MSCI USA Min Vol Factor ETF | US stocks | 0.74 | 0.61 |
| 21 | [VEA](https://tickerinside.com/etf/vea/), Vanguard FTSE Developed Markets ETF | International stocks | 0.75 | 0.61 |
| 22 | [VXUS](https://tickerinside.com/etf/vxus/), Vanguard Total International Stock ETF | International stocks | 0.76 | 0.61 |
| 23 | [IWM](https://tickerinside.com/etf/iwm/), iShares Russell 2000 ETF | US stocks | 0.77 | 0.69 |
| 24 | [VTV](https://tickerinside.com/etf/vtv/), Vanguard Value ETF | US stocks | 0.79 | 0.73 |
| 25 | [RSP](https://tickerinside.com/etf/rsp/), Invesco S&P 500 Equal Weight ETF | US stocks | 0.84 | 0.78 |
| 26 | [VO](https://tickerinside.com/etf/vo/), Vanguard Mid-Cap ETF | US stocks | 0.87 | 0.82 |
| 27 | [MTUM](https://tickerinside.com/etf/mtum/), iShares MSCI USA Momentum Factor ETF | US stocks | 0.87 | 0.78 |
| 28 | [QQQ](https://tickerinside.com/etf/qqq/), Invesco QQQ Trust | US stocks | 0.95 | 0.86 |
| 29 | [QUAL](https://tickerinside.com/etf/qual/), iShares MSCI USA Quality Factor ETF | US stocks | 0.97 | 0.93 |
| 30 | [VTI](https://tickerinside.com/etf/vti/), Vanguard Total Stock Market ETF | US stocks | 1.00 | 0.99 |

## How much do SHY, GLD and XLE overlap with VOO, and how volatile were they?

Overlap: the weight each ETF holds in companies VOO also holds, counted at the smaller weight; the lower, the less it repeats what you hold. Volatility: how much the weekly returns varied, annualised.

| ETF | Group | Weekly correlation, 156 weeks to 2026-10-13 | On down weeks, 61 weeks | Overlap by weight | Volatility, annualised |
|---|---|---:|---:|---:|---:|
| [SHY](https://tickerinside.com/etf/shy/), iShares 1-3 Year Treasury Bond ETF | Bonds | 0.03 | -0.28 | Holds bonds | 1.6% |
| [GLD](https://tickerinside.com/etf/gld/), SPDR Gold Shares | Commodities | 0.14 | 0.17 | Holds gold | 18.6% |
| [XLE](https://tickerinside.com/etf/xle/), Energy Select Sector SPDR Fund | Sector stocks | 0.17 | 0.69 | 3.5% | 22.9% |
| VOO, the ETF you hold | | | | | 14.1% |

- With 10% in SHY and 90% in VOO, the portfolio's annualised weekly volatility over the 156 weeks to 2026-10-13 would have been 12.7% instead of 14.1%.
- With 10% in GLD and 90% in VOO, the portfolio's annualised weekly volatility over the 156 weeks to 2026-10-13 would have been 13.1% instead of 14.1%.
- With 10% in XLE and 90% in VOO, the portfolio's annualised weekly volatility over the 156 weeks to 2026-10-13 would have been 13.3% instead of 14.1%.

## What do SHY, GLD and XLE hold, next to VOO?

Each ETF's weight in mega-cap tech, its largest sector or asset and its largest country outside the US.

| ETF | Holdings file | Mega-cap tech | Largest sector or asset | Largest outside the US |
|---|---|---:|---|---|
| SHY | SEC Form N-PORT, 2026-05-31 | None | US Treasury notes and bonds 99.0% (Money market funds 1.8%) | Not measured |
| GLD | Trust's own SEC filing, 2026-06-30 | None | Gold 100.0% | Not measured |
| XLE | Issuer file, 2026-10-12 | 0.0% | Energy 99.8% | None, 99.8% US |
| VOO, the ETF you hold | Issuer file, 2026-08-31 | 36.2% | Technology 37.9% | None, 100.0% US |

SHY holds US Treasury notes and bonds (99.0%) and money market funds (1.8%) of its net assets, by its Form N-PORT filing of 2026-05-31. GLD holds gold (100.0%) of its net assets, by its own SEC filing of 2026-06-30.

## Questions and answers

**Which ETF in each group of the list had the lowest weekly correlation with VOO?**
SHY 0.03 (bonds), GLD 0.14 (commodities), XLE 0.17 (sector stocks), SCHD 0.58 (US stocks), AVDV 0.68 (international stocks) and VWO 0.71 (emerging market stocks), over the 156 weeks to 2026-10-13, among 30 large US ETFs.

**How did SHY, GLD and XLE move on the weeks VOO fell?**
On the 61 weeks VOO fell, of the 156 to 2026-10-13, their weekly correlation with VOO was -0.28 for SHY, 0.17 for GLD and 0.69 for XLE.

**How would 10% in SHY, GLD or XLE have changed the volatility of VOO?**
Over the 156 weeks to 2026-10-13, the annualised weekly volatility of VOO was 14.1%; with 10% in SHY it would have been 12.7%, in GLD 13.1%, and in XLE 13.3%.

**How much of XLE is in companies VOO also holds?**
100.0% of XLE's weight is in 21 holdings VOO also holds (by ticker); counted at the smaller of the two weights, the overlap is 3.5%. XOM, CVX and COP account for 1.01, 0.58 and 0.24 points of it. XLE holdings of 2026-10-12.

## The list and the rule

Chosen on 2026-10-10: 30 large US ETFs across six kinds of exposure, one ETF per exposure, the same list for every portfolio.

- 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

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.

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.

How each figure is measured, and the order of the table: https://tickerinside.com/how-the-numbers-are-produced/#diversify

Share this answer: https://tickerinside.com/diversify/?have=VOO
JSON: https://tickerinside.com/api/v1/diversify?have=VOO
The list: https://tickerinside.com/api/v1/diversify/candidates.json
Sources: VOO https://tickerinside.com/etf/voo/, SHY https://tickerinside.com/etf/shy/, GLD https://tickerinside.com/etf/gld/, XLE https://tickerinside.com/etf/xle/.
Measurement, not investment advice. CC BY 4.0, cite as: TickerInside (tickerinside.com), Does it diversify me?, https://tickerinside.com/diversify/?have=VOO, from the ETFs' weekly prices and holdings files, dated as shown.
Canonical page: https://tickerinside.com/diversify/