SMCI vs XLK: Correlation
Supermicro (SMCI) and Technology Select Sector SPDR Fund (XLK) show a moderate relationship: their 3-year correlation of weekly returns is 0.51.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SMCI and XLK?
Over the past 3 years, SMCI and XLK moved with a correlation of 0.51, which is moderate. The relationship has been stable: the 1-year correlation (0.50) sits close to the 3-year figure. Over 5 years the correlation is 0.45, and the annualized covariance of weekly returns is 1302.7 %².
In SMCI's tracked universe of 29 assets, XLK sits right near the top at #2. The last year tells two different stories: XLK led by 57.5 percentage points, -14.1% for SMCI against +43.4% for XLK. The link looks structural: the rolling one-year correlation barely moved, holding between 0.36 and 0.60. One caveat on sizing: SMCI is 4.5 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.
SMCI vs XLK: side by side
| SMCI (Supermicro) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -14.1% | +43.4% |
| 5-year return | +983.4% | +145.2% |
| Volatility (ann.) | 107.1% | 24.0% |
| Beta vs S&P 500 | 3.08 | 1.50 |
| Max drawdown (3Y) | -84.8% | -25.7% |
| Market cap | $24.9B | – |
| P/E (trailing) | 11.5 | – |
| Dividend yield | 0.00% | 0.45% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $115.4B |
| Sector / category | Information Technology | 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 | SMCI | XLK |
|---|---|---|
| 2022 | +86.8% | -27.7% |
| 2023 | +246.2% | +56.0% |
| 2024 | +7.2% | +21.6% |
| 2025 | -4.0% | +24.6% |
| 2026 | +31.4% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
SMCI represents 0.14% of XLK's portfolio, so part of any move in XLK is SMCI itself, and the correlation between them is partly mechanical.
Are SMCI and XLK good diversifiers for each other?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SMCI and XLK?
As of 2026-08-27, the correlation of weekly returns between SMCI and XLK is 0.51 over 3 years, 0.50 over 1 year and 0.45 over 5 years.
Is XLK a good diversifier for SMCI?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.51 mean?
On the −1 to +1 scale, 0.51 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/smci-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/smci-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SMCI correlations · XLK correlations
