SOXX vs XLE: Correlation & Overlap
iShares Semiconductor ETF (SOXX) and Energy Select Sector SPDR Fund (XLE) show a near-zero relationship: their 3-year correlation of weekly returns is 0.08. By holdings, the two funds overlap 0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SOXX and XLE?
On 3 years of weekly data the SOXX/XLE correlation comes out at 0.08, near zero, meaning they move largely independently. The past 12 months show a weaker link (-0.35) than the 3-year average (0.08). The 5-year figure is 0.12, and annualized covariance runs at 63.7 %².
Within SOXX's tracked universe of 127 assets, XLE comes in at #117 by 3-year correlation. Correlation aside, the last 12 months split them widely, with SOXX ahead by 66.0 points (+110.0% versus +44.0%). The relationship is regime-dependent: the rolling one-year correlation swung between -0.37 and 0.52 over the past three years, so this pair behaves very differently depending on the market environment. Risk is not evenly split, since SOXX carries 1.5 times the volatility of the other side.
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 XLE: side by side
| SOXX (iShares Semiconductor ETF) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +110.0% | +44.0% |
| 5-year return | +247.5% | +206.7% |
| Volatility (ann.) | 35.2% | 23.1% |
| Beta vs S&P 500 | 1.93 | 0.27 |
| Max drawdown (3Y) | -41.4% | -20.1% |
| Dividend yield | 0.29% | 2.55% |
| Expense ratio | 0.33% | 0.08% |
| Assets under management | $44.7B | $39.2B |
| 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. XLE is an Equity Energy fund from State Street Investment Management: $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% trailing dividend yield.
Portfolio overlap between SOXX and XLE
The two portfolios are largely distinct. Weighing the shared positions, 0% of the two funds is identical, spread across 0 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by SOXX: NVDA (8.87%), MU (8.64%), AMD (8.33%), AVGO (7.11%), MRVL (5.34%). Only by XLE: XOM (20.03%), CVX (14.84%), COP (6.30%), MPC (5.40%), PSX (5.37%).
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 | XLE |
|---|---|---|
| 2022 | -35.1% | +64.3% |
| 2023 | +67.1% | -0.6% |
| 2024 | +12.9% | +5.6% |
| 2025 | +40.7% | +7.9% |
| 2026 | +74.7% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SOXX and XLE good diversifiers for each other?
Yes: at 0.08, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between SOXX and XLE?
The SOXX/XLE correlation stands at 0.08 on a 3-year window (1 year: -0.35, 5 years: 0.12), computed from weekly returns as of 2026-08-27.
Is XLE a good diversifier for SOXX?
Yes: at 0.08, the two have gone their own ways historically, which is what genuine diversification looks like.
How much do SOXX and XLE overlap?
The two funds share 0 holdings amounting to 0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
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Hubs: SOXX correlations · XLE correlations
