SOXX vs XLB: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Semiconductor ETF (SOXX) and Materials Select Sector SPDR Fund (XLB) carry a correlation of 0.48, a moderate link. The two funds also share 0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SOXX and XLB?
On 3 years of weekly data the SOXX/XLB correlation comes out at 0.48, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.34 versus 0.48 over 3 years. The 5-year figure is 0.57, and annualized covariance runs at 283.1 %².
Among the 127 assets we track against SOXX, XLB ranks #103 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SOXX outperformed by 92.4 percentage points (+110.0% for SOXX against +17.6% for XLB). Across three years, the rolling one-year figure varied moderately, from 0.32 to 0.68. One caveat on sizing: SOXX is 2.1 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.
SOXX vs XLB: side by side
| SOXX (iShares Semiconductor ETF) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +110.0% | +17.6% |
| 5-year return | +247.5% | +36.9% |
| Volatility (ann.) | 35.2% | 16.7% |
| Beta vs S&P 500 | 1.93 | 0.72 |
| Max drawdown (3Y) | -41.4% | -23.2% |
| Dividend yield | 0.29% | 1.68% |
| Expense ratio | 0.33% | 0.08% |
| Assets under management | $44.7B | $8.3B |
| Sector / category | ETF · Thematic | Sector ETF |
On the fund side, SOXX sits in the Technology category at iShares, with $44.7B under management, 30 holdings, a 0.33% expense ratio, a 0.29% trailing dividend yield. XLB is a Natural Resources fund from State Street Investment Management: $8.3B under management, 26 holdings, a 0.08% expense ratio, a 1.68% trailing dividend yield.
Portfolio overlap between SOXX and XLB
The two portfolios are largely distinct, with 0 holdings in common adding up to 0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by SOXX: NVDA (8.87%), MU (8.64%), AMD (8.33%), AVGO (7.11%), MRVL (5.34%). Only by XLB: LIN (12.94%), NEM (8.02%), FCX (6.48%), SHW (4.87%), ECL (4.80%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | SOXX | XLB |
|---|---|---|
| 2022 | -35.1% | -12.3% |
| 2023 | +67.1% | +12.5% |
| 2024 | +12.9% | +0.1% |
| 2025 | +40.7% | +9.9% |
| 2026 | +74.7% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SOXX and XLB good diversifiers for each other?
Reasonably. At 0.48, SOXX and XLB keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between SOXX and XLB?
Using weekly returns as of 2026-08-27: 0.48 over 3 years, with 0.34 over the last year and 0.57 over 5 years.
Is XLB a good diversifier for SOXX?
Reasonably. At 0.48, SOXX and XLB keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do SOXX and XLB overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
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Hubs: SOXX correlations · XLB correlations
