ARKK vs XLK: Correlation
ARK Innovation ETF (ARKK) and Technology Select Sector SPDR Fund (XLK) show a strong relationship: their 3-year correlation of weekly returns is 0.74.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARKK and XLK?
Over the past 3 years, ARKK and XLK moved with a correlation of 0.74, which is strong. Little has changed lately, as the 1-year reading of 0.73 lands near the 3-year figure. Over 5 years the correlation is 0.75, and the annualized covariance of weekly returns is 692.6 %².
Within ARKK's tracked universe of 122 assets, XLK comes in at #16 by 3-year correlation. The last year tells two different stories: XLK led by 27.7 percentage points, +15.7% for ARKK against +43.4% for XLK. Across three years, the rolling one-year figure varied moderately, from 0.62 to 0.87. One caveat on sizing: ARKK is 1.6 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ARKK vs XLK: side by side
| ARKK (ARK Innovation ETF) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +15.7% | +43.4% |
| 5-year return | -27.7% | +145.2% |
| Volatility (ann.) | 38.8% | 24.0% |
| Beta vs S&P 500 | 2.07 | 1.50 |
| Max drawdown (3Y) | -39.6% | -25.7% |
| Dividend yield | – | 0.45% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $115.4B |
| Sector / category | ETF · Thematic | Sector ETF |
On the fund side, XLK sits in the Technology category at State Street Investment Management, with $115.4B under management, 73 holdings, a 0.08% expense ratio, a 0.45% trailing dividend yield.
Year-by-year returns
| Year | ARKK | XLK |
|---|---|---|
| 2022 | -67.0% | -27.7% |
| 2023 | +69.0% | +56.0% |
| 2024 | +8.4% | +21.6% |
| 2025 | +35.5% | +24.6% |
| 2026 | +13.6% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARKK and XLK good diversifiers for each other?
To a limited degree. At 0.74 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between ARKK and XLK?
As of 2026-08-27, the correlation of weekly returns between ARKK and XLK is 0.74 over 3 years, 0.73 over 1 year and 0.75 over 5 years.
Is XLK a good diversifier for ARKK?
To a limited degree. At 0.74 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.74 mean?
On the −1 to +1 scale, 0.74 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/arkk-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/arkk-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ARKK correlations · XLK correlations
