RSP vs XLK: Correlation & Overlap
How closely do Invesco S&P 500 Equal Weight ETF (RSP) and Technology Select Sector SPDR Fund (XLK) trade together? Their weekly returns over three years give a correlation of 0.63, which is strong. Looking through to holdings, 12.9% 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 RSP and XLK?
Across a 3-year window, the weekly returns of RSP and XLK correlate at 0.63, strong. Lately the two have drifted apart, with the 1-year correlation at 0.48 versus 0.63 over 3 years. Stretching to 5 years gives 0.72, with an annualized covariance of 200.3 %².
Among the 250 assets we track against RSP, XLK ranks #104 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLK outperformed by 24.2 percentage points (+19.2% for RSP against +43.4% for XLK). On a rolling one-year basis the correlation drifted between 0.42 and 0.83, a moderate band. One caveat on sizing: XLK is 1.8 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.
RSP vs XLK: side by side
| RSP (Invesco S&P 500 Equal Weight ETF) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +19.2% | +43.4% |
| 5-year return | +53.9% | +145.2% |
| Volatility (ann.) | 13.2% | 24.0% |
| Beta vs S&P 500 | 0.77 | 1.50 |
| Max drawdown (3Y) | -17.8% | -25.7% |
| Dividend yield | 1.49% | 0.45% |
| Expense ratio | 0.20% | 0.08% |
| Assets under management | $97.3B | $115.4B |
| Sector / category | ETF · US Large Cap | Sector ETF |
RSP, Invesco's Large Blend fund, carries $97.3B under management, 505 holdings, a 0.20% expense ratio, a 1.49% 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 RSP and XLK
The two portfolios are largely distinct. Weighing the shared positions, 12.9% of the two funds is identical, spread across 73 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in RSP | Weight in XLK |
|---|---|---|
| WDAY | 0.26% | 0.26% |
| PLTR | 0.25% | 2.73% |
| ANET | 0.25% | 1.40% |
| PANW | 0.24% | 1.84% |
| DELL | 0.23% | 0.90% |
| MSFT | 0.23% | 10.10% |
| ROP | 0.23% | 0.28% |
| INTU | 0.23% | 0.64% |
| HPE | 0.23% | 0.49% |
| NTAP | 0.22% | 0.26% |
| CRM | 0.22% | 1.13% |
| NOW | 0.22% | 0.87% |
| MSI | 0.22% | 0.54% |
| ADBE | 0.22% | 0.74% |
| CRWD | 0.22% | 1.29% |
Largest positions held only by RSP: MRNA (0.61%), CRL (0.29%), DASH (0.29%), EXPE (0.28%), PYPL (0.28%). 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 | RSP | XLK |
|---|---|---|
| 2022 | -11.6% | -27.7% |
| 2023 | +13.7% | +56.0% |
| 2024 | +12.8% | +21.6% |
| 2025 | +11.2% | +24.6% |
| 2026 | +16.5% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RSP and XLK good diversifiers for each other?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between RSP and XLK?
The RSP/XLK correlation stands at 0.63 on a 3-year window (1 year: 0.48, 5 years: 0.72), computed from weekly returns as of 2026-08-27.
Is XLK a good diversifier for RSP?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do RSP and XLK overlap?
12.9% by weight, across 73 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
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Related comparisons
Hubs: RSP correlations · XLK correlations
