DGRO vs XLK: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Core Dividend Growth ETF (DGRO) and Technology Select Sector SPDR Fund (XLK) carry a correlation of 0.58, a moderate link. The two funds also share 15.8% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and XLK?
Across a 3-year window, the weekly returns of DGRO and XLK correlate at 0.58, moderate. The past 12 months show a weaker link (0.29) than the 3-year average (0.58). Stretching to 5 years gives 0.69, with an annualized covariance of 159.0 %².
By 3-year correlation, XLK places #79 of the 138 assets tracked against DGRO. Their recent paths diverged sharply: over the last 12 months XLK outperformed by 22.4 percentage points (+21.0% for DGRO against +43.4% for XLK). This link changes with the market regime, having swung between 0.27 and 0.82 on a rolling one-year basis. One caveat on sizing: XLK 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.
DGRO vs XLK: side by side
| DGRO (iShares Core Dividend Growth ETF) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +21.0% | +43.4% |
| 5-year return | +67.9% | +145.2% |
| Volatility (ann.) | 11.4% | 24.0% |
| Beta vs S&P 500 | 0.65 | 1.50 |
| Max drawdown (3Y) | -14.0% | -25.7% |
| Dividend yield | 1.89% | 0.45% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $42.8B | $115.4B |
| Sector / category | ETF · Dividend | Sector ETF |
DGRO is a Large Value fund from iShares: $42.8B under management, 383 holdings, a 0.08% expense ratio, a 1.89% trailing dividend yield. 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.
Portfolio overlap between DGRO and XLK
The two portfolios partially overlap: 15.8% of the funds' weight sits in the same underlying holdings (23 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in DGRO | Weight in XLK |
|---|---|---|
| MSFT | 3.39% | 10.10% |
| AAPL | 2.85% | 12.61% |
| AVGO | 2.28% | 4.61% |
| CSCO | 1.27% | 2.97% |
| IBM | 1.09% | 1.45% |
| ACN | 0.88% | 0.75% |
| QCOM | 0.59% | 1.15% |
| ORCL | 0.50% | 1.69% |
| ADI | 0.42% | 1.21% |
| AMAT | 0.35% | 2.55% |
| INTU | 0.31% | 0.64% |
| APH | 0.29% | 1.33% |
| LRCX | 0.27% | 2.62% |
| KLAC | 0.22% | 1.61% |
| MSI | 0.20% | 0.54% |
Largest positions held only by DGRO: JNJ (3.16%), JPM (3.14%), ABBV (3.03%), XOM (2.86%), MRK (2.20%). Only by XLK: NVDA (13.91%), AMD (4.09%), MU (3.99%), INTC (2.92%), PLTR (2.73%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | DGRO | XLK |
|---|---|---|
| 2022 | -7.9% | -27.7% |
| 2023 | +10.5% | +56.0% |
| 2024 | +16.6% | +21.6% |
| 2025 | +15.7% | +24.6% |
| 2026 | +15.2% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and XLK good diversifiers for each other?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between DGRO and XLK?
Using weekly returns as of 2026-08-27: 0.58 over 3 years, with 0.29 over the last year and 0.69 over 5 years.
Is XLK a good diversifier for DGRO?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do DGRO and XLK overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 15.8% by weight over 23 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dgro-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/dgro-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: DGRO correlations · XLK correlations
