FXI vs XLK: Correlation & Overlap
Measured on weekly returns over the past three years, iShares China Large-Cap ETF (FXI) and Technology Select Sector SPDR Fund (XLK) carry a correlation of 0.32, a moderate link. By holdings, the two funds overlap 0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FXI and XLK?
Over the past 3 years, FXI and XLK moved with a correlation of 0.32, which is moderate. Recent behaviour matches the longer record: 0.30 over 1 year against 0.32 over 3. Over 5 years the correlation is 0.30, and the annualized covariance of weekly returns is 193.7 %².
By 3-year correlation, XLK places #48 of the 74 assets tracked against FXI. Correlation aside, the last 12 months split them widely, with XLK ahead by 49.5 points (-6.1% versus +43.4%). On a rolling one-year basis the correlation drifted between 0.20 and 0.66, a moderate band.
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.
FXI vs XLK: side by side
| FXI (iShares China Large-Cap ETF) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -6.1% | +43.4% |
| 5-year return | -1.4% | +145.2% |
| Volatility (ann.) | 25.3% | 24.0% |
| Beta vs S&P 500 | 0.68 | 1.50 |
| Max drawdown (3Y) | -23.2% | -25.7% |
| Dividend yield | 1.87% | 0.45% |
| Expense ratio | 0.73% | 0.08% |
| Assets under management | $4.3B | $115.4B |
| Sector / category | ETF · International | Sector ETF |
FXI is a Greater China Region fund from iShares: $4.3B under management, 50 holdings, a 0.73% expense ratio, a 1.87% 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 FXI and XLK
The two portfolios are largely distinct. Weighing the shared positions, 0% of the two funds is identical, spread across 0 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by FXI: 9988 (9.72%), 939 (9.09%), 700 (8.51%), 1398 (6.35%), 1810 (5.16%). Only by XLK: NVDA (13.91%), AAPL (12.61%), MSFT (10.10%), AVGO (4.61%), AMD (4.09%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | FXI | XLK |
|---|---|---|
| 2022 | -20.7% | -27.7% |
| 2023 | -12.4% | +56.0% |
| 2024 | +29.0% | +21.6% |
| 2025 | +28.9% | +24.6% |
| 2026 | -7.3% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FXI and XLK good diversifiers for each other?
Reasonably. At 0.32, FXI and XLK keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between FXI and XLK?
The FXI/XLK correlation stands at 0.32 on a 3-year window (1 year: 0.30, 5 years: 0.30), computed from weekly returns as of 2026-08-27.
Is XLK a good diversifier for FXI?
Reasonably. At 0.32, FXI and XLK keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do FXI and XLK overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/fxi-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/fxi-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: FXI correlations · XLK correlations
