MTUM vs XLK: Correlation & Overlap
iShares MSCI USA Momentum Factor ETF (MTUM) and Technology Select Sector SPDR Fund (XLK) show a very strong relationship: their 3-year correlation of weekly returns is 0.90. Looking through to holdings, 37.6% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MTUM and XLK?
Across a 3-year window, the weekly returns of MTUM and XLK correlate at 0.90, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.86 lands near the 3-year figure. Stretching to 5 years gives 0.83, with an annualized covariance of 442.4 %².
XLK is one of the assets that tracks MTUM most closely: it ranks #3 out of the 109 assets we track against MTUM. The last year tells two different stories: XLK led by 18.2 percentage points, +25.2% for MTUM against +43.4% for XLK. Across three years, the rolling one-year figure varied moderately, from 0.50 to 0.93.
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.
MTUM vs XLK: side by side
| MTUM (iShares MSCI USA Momentum Factor ETF) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.2% | +43.4% |
| 5-year return | +76.1% | +145.2% |
| Volatility (ann.) | 20.6% | 24.0% |
| Beta vs S&P 500 | 1.25 | 1.50 |
| Max drawdown (3Y) | -21.0% | -25.7% |
| Dividend yield | 0.62% | 0.45% |
| Expense ratio | 0.15% | 0.08% |
| Assets under management | $25.3B | $115.4B |
| Sector / category | ETF · US Style | Sector ETF |
MTUM is a Large Blend fund from iShares: $25.3B under management, 126 holdings, a 0.15% expense ratio, a 0.62% 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 MTUM and XLK
The two portfolios partially overlap, with 29 holdings in common adding up to 37.6% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in MTUM | Weight in XLK |
|---|---|---|
| AVGO | 4.25% | 4.61% |
| AMD | 5.09% | 4.09% |
| MU | 6.60% | 3.99% |
| INTC | 3.91% | 2.92% |
| LRCX | 3.26% | 2.62% |
| AMAT | 2.89% | 2.55% |
| CSCO | 2.43% | 2.97% |
| TXN | 1.75% | 1.59% |
| KLAC | 1.51% | 1.61% |
| MRVL | 1.32% | 1.44% |
| STX | 2.16% | 1.27% |
| ADI | 1.45% | 1.21% |
| WDC | 1.89% | 1.08% |
| APH | 0.82% | 1.33% |
| GLW | 1.37% | 0.80% |
Largest positions held only by MTUM: XOM (3.78%), JNJ (3.67%), CAT (3.63%), GEV (2.91%), WMT (2.44%). Only by XLK: NVDA (13.91%), AAPL (12.61%), MSFT (10.10%), PLTR (2.73%), PANW (1.84%).
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 | MTUM | XLK |
|---|---|---|
| 2022 | -18.3% | -27.7% |
| 2023 | +9.1% | +56.0% |
| 2024 | +32.9% | +21.6% |
| 2025 | +22.1% | +24.6% |
| 2026 | +21.8% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MTUM and XLK good diversifiers for each other?
Not really. At 0.90, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between MTUM and XLK?
The MTUM/XLK correlation stands at 0.90 on a 3-year window (1 year: 0.86, 5 years: 0.83), computed from weekly returns as of 2026-08-27.
Is XLK a good diversifier for MTUM?
Not really. At 0.90, the two trade almost as one position, and owning both buys little extra protection.
How much do MTUM and XLK overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 37.6% by weight over 29 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mtum-vs-xlk.json
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[](https://www.pairbook.io/pair/mtum-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MTUM correlations · XLK correlations
