SOXX vs XLC: Correlation & Overlap
How closely do iShares Semiconductor ETF (SOXX) and Communication Services Select Sector SPDR Fund (XLC) trade together? Their weekly returns over three years give a correlation of 0.50, which is moderate. 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 XLC?
On 3 years of weekly data the SOXX/XLC correlation comes out at 0.50, moderate. The past 12 months show a weaker link (0.30) than the 3-year average (0.50). The 5-year figure is 0.60, and annualized covariance runs at 283.0 %².
Within SOXX's tracked universe of 127 assets, XLC comes in at #99 by 3-year correlation. Correlation aside, the last 12 months split them widely, with SOXX ahead by 108.5 points (+110.0% versus +1.5%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.28 to 0.78. One caveat on sizing: SOXX is 2.2 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 XLC: side by side
| SOXX (iShares Semiconductor ETF) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +110.0% | +1.5% |
| 5-year return | +247.5% | +37.5% |
| Volatility (ann.) | 35.2% | 16.0% |
| Beta vs S&P 500 | 1.93 | 0.90 |
| Max drawdown (3Y) | -41.4% | -18.0% |
| Dividend yield | 0.29% | 1.32% |
| Expense ratio | 0.33% | 0.08% |
| Assets under management | $44.7B | $21.7B |
| Sector / category | ETF · Thematic | Sector ETF |
SOXX is a Technology fund from iShares: $44.7B under management, 30 holdings, a 0.33% expense ratio, a 0.29% trailing dividend yield. On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Portfolio overlap between SOXX and XLC
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 XLC: META (16.73%), GOOGL (10.29%), GOOG (8.22%), T (5.20%), VZ (4.99%).
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 | XLC |
|---|---|---|
| 2022 | -35.1% | -37.6% |
| 2023 | +67.1% | +52.8% |
| 2024 | +12.9% | +34.7% |
| 2025 | +40.7% | +23.1% |
| 2026 | +74.7% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SOXX and XLC good diversifiers for each other?
To a limited degree. At 0.50 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between SOXX and XLC?
As of 2026-08-27, the correlation of weekly returns between SOXX and XLC is 0.50 over 3 years, 0.30 over 1 year and 0.60 over 5 years.
Is XLC a good diversifier for SOXX?
To a limited degree. At 0.50 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do SOXX and XLC overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/soxx-vs-xlc.json
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The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SOXX correlations · XLC correlations
