A novel roving, and spun yarn produced from the roving, have a core and a sheath arrangement with substantially 100 percent of a first type of fiber in the sheath, and for a second type of fiber having distinctly different properties than the first fiber, about 75-90 percent in the core and about 25-10 percent in the sheath. Yarns having a cheaper fiber in the center (e.g. polyester) and a more expensive fiber on the outside (e.g. wool), or one having a higher strength core fiber and a more luxurious sheath fiber, can be produced. A sliver of first fibers and a distinct sliver of second fibers are fed in generally parallel paths. The slivers are continuously drafted to produce two distinct drafted slivers, and the path of at least one of the drafted slivers is changed so that the two slivers proceed in intersecting paths, and at substantially the same speed. The first fibers are continuously caused to wrap around the second fibers, with an angle of intersection between the two paths in the range of 60.degree.-120.degree., to produce a composite drafted sliver-roving, which is twisted to produce a roving. The roving is ring spun to produce a spun yarn with about 75-90 percent of the second fibers in the core and about 25-10 percent in the sheath, and substantially 100 percent of the first fibers in the sheath.