AVGO vs XLK: Correlation
How closely do Broadcom (AVGO) and Technology Select Sector SPDR Fund (XLK) trade together? Their weekly returns over three years give a correlation of 0.75, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AVGO and XLK?
Over the past 3 years, AVGO and XLK moved with a correlation of 0.75, which is strong. Little has changed lately, as the 1-year reading of 0.67 lands near the 3-year figure. Over 5 years the correlation is 0.74, and the annualized covariance of weekly returns is 928.0 %².
Among the 33 assets we track against AVGO, XLK ranks #7 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLK ahead by 18.7 points (+24.7% versus +43.4%). The rolling one-year correlation moved between 0.59 and 0.86 over the past three years, a moderate range. One caveat on sizing: AVGO is 2.1 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.
AVGO vs XLK: side by side
| AVGO (Broadcom) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +24.7% | +43.4% |
| 5-year return | +718.0% | +145.2% |
| Volatility (ann.) | 51.3% | 24.0% |
| Beta vs S&P 500 | 2.45 | 1.50 |
| Max drawdown (3Y) | -41.1% | -25.7% |
| Market cap | $1,767.6B | – |
| P/E (trailing) | 59.2 | – |
| Dividend yield | 0.71% | 0.45% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $115.4B |
| Sector / category | Information Technology | 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 | AVGO | XLK |
|---|---|---|
| 2022 | -13.3% | -27.7% |
| 2023 | +104.2% | +56.0% |
| 2024 | +110.5% | +21.6% |
| 2025 | +50.6% | +24.6% |
| 2026 | +7.7% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 4.61% of XLK is AVGO itself, so the fund partly moves with the stock by construction.
Are AVGO and XLK good diversifiers for each other?
To a limited degree. At 0.75 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 AVGO and XLK?
Using weekly returns as of 2026-08-27: 0.75 over 3 years, with 0.67 over the last year and 0.74 over 5 years.
Is XLK a good diversifier for AVGO?
To a limited degree. At 0.75 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 0.75 mean?
On the −1 to +1 scale, 0.75 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/avgo-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/avgo-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: AVGO correlations · XLK correlations
