IBKR vs XLK: Correlation
Measured on weekly returns over the past three years, Interactive Brokers (IBKR) and Technology Select Sector SPDR Fund (XLK) carry a correlation of 0.56, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBKR and XLK?
On 3 years of weekly data the IBKR/XLK correlation comes out at 0.56, moderate. The relationship has been stable: the 1-year correlation (0.59) sits close to the 3-year figure. The 5-year figure is 0.50, and annualized covariance runs at 457.2 %².
By 3-year correlation, XLK places #15 of the 32 assets tracked against IBKR. The trailing year gives IBKR the advantage: +57.0% versus +43.4%, a 13.6-point spread. The relationship is regime-dependent: the rolling one-year correlation swung between 0.04 and 0.79 over the past three years, so this pair behaves very differently depending on the market environment.
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.
IBKR vs XLK: side by side
| IBKR (Interactive Brokers) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +57.0% | +43.4% |
| 5-year return | +516.0% | +145.2% |
| Volatility (ann.) | 33.9% | 24.0% |
| Beta vs S&P 500 | 1.37 | 1.50 |
| Max drawdown (3Y) | -38.7% | -25.7% |
| Market cap | $164.5B | – |
| P/E (trailing) | 38.5 | – |
| Dividend yield | 0.34% | 0.45% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $115.4B |
| Sector / category | Financials | 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 | IBKR | XLK |
|---|---|---|
| 2022 | -8.4% | -27.7% |
| 2023 | +15.1% | +56.0% |
| 2024 | +114.4% | +21.6% |
| 2025 | +46.4% | +24.6% |
| 2026 | +50.4% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBKR and XLK good diversifiers for each other?
Only partially. A correlation of 0.56 means IBKR and XLK share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between IBKR and XLK?
Using weekly returns as of 2026-08-27: 0.56 over 3 years, with 0.59 over the last year and 0.50 over 5 years.
Is XLK a good diversifier for IBKR?
Only partially. A correlation of 0.56 means IBKR and XLK share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.56 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
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Related comparisons
Hubs: IBKR correlations · XLK correlations
