IVV vs XLK: Correlation & Overlap
iShares Core S&P 500 ETF (IVV) and Technology Select Sector SPDR Fund (XLK) show a very strong relationship: their 3-year correlation of weekly returns is 0.90. The two funds also share 37.0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IVV and XLK?
On 3 years of weekly data the IVV/XLK correlation comes out at 0.90, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.87 lands near the 3-year figure. The 5-year figure is 0.91, and annualized covariance runs at 314.2 %².
Within IVV's tracked universe of 122 assets, XLK comes in at #15 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLK outperformed by 22.7 percentage points (+20.7% for IVV against +43.4% for XLK). Stability stands out here, with the rolling one-year correlation confined to 0.82 through 0.96. Note the risk asymmetry: XLK runs 1.7 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
IVV vs XLK: side by side
| IVV (iShares Core S&P 500 ETF) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.7% | +43.4% |
| 5-year return | +83.0% | +145.2% |
| Volatility (ann.) | 14.5% | 24.0% |
| Beta vs S&P 500 | 1.00 | 1.50 |
| Max drawdown (3Y) | -18.8% | -25.7% |
| Dividend yield | 1.09% | 0.45% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $869.2B | $115.4B |
| Sector / category | ETF · US Large Cap | Sector ETF |
IVV, iShares's Large Blend fund, carries $869.2B under management, 503 holdings, a 0.03% expense ratio, a 1.09% 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 IVV and XLK
The two portfolios partially overlap: 37.0% of the funds' weight sits in the same underlying holdings (73 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in IVV | Weight in XLK |
|---|---|---|
| NVDA | 7.67% | 13.91% |
| AAPL | 6.96% | 12.61% |
| MSFT | 5.57% | 10.10% |
| AVGO | 2.54% | 4.61% |
| MU | 1.60% | 3.99% |
| AMD | 1.18% | 4.09% |
| CSCO | 0.67% | 2.97% |
| INTC | 0.66% | 2.92% |
| PLTR | 0.62% | 2.73% |
| LRCX | 0.59% | 2.62% |
| AMAT | 0.58% | 2.55% |
| PANW | 0.42% | 1.84% |
| ORCL | 0.38% | 1.69% |
| TXN | 0.36% | 1.59% |
| KLAC | 0.36% | 1.61% |
Largest positions held only by IVV: AMZN (3.85%), GOOGL (3.03%), GOOG (2.42%), META (1.91%), TSLA (1.47%). Only by XLK: .
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 | IVV | XLK |
|---|---|---|
| 2022 | -18.2% | -27.7% |
| 2023 | +26.3% | +56.0% |
| 2024 | +24.9% | +21.6% |
| 2025 | +17.8% | +24.6% |
| 2026 | +13.7% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IVV and XLK good diversifiers for each other?
No. With a correlation of 0.90, IVV and XLK move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between IVV and XLK?
As of 2026-08-27, the correlation of weekly returns between IVV and XLK is 0.90 over 3 years, 0.87 over 1 year and 0.91 over 5 years.
Is XLK a good diversifier for IVV?
No. With a correlation of 0.90, IVV and XLK move nearly in lockstep, so holding both adds very little diversification.
How much do IVV and XLK overlap?
The two funds share 73 holdings amounting to 37.0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ivv-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ivv-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IVV correlations · XLK correlations
