SOXX vs XLF: Correlation & Overlap
How closely do iShares Semiconductor ETF (SOXX) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.40, which is moderate. 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 XLF?
Across a 3-year window, the weekly returns of SOXX and XLF correlate at 0.40, moderate. The link has loosened recently: the 1-year correlation (0.18) runs below the 3-year figure (0.40). Stretching to 5 years gives 0.49, with an annualized covariance of 224.6 %².
By 3-year correlation, XLF places #107 of the 127 assets tracked against SOXX. Their recent paths diverged sharply: over the last 12 months SOXX outperformed by 100.7 percentage points (+110.0% for SOXX against +9.3% for XLF). On a rolling one-year basis the correlation drifted between 0.15 and 0.64, a moderate band. 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 XLF: side by side
| SOXX (iShares Semiconductor ETF) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +110.0% | +9.3% |
| 5-year return | +247.5% | +64.2% |
| Volatility (ann.) | 35.2% | 16.2% |
| Beta vs S&P 500 | 1.93 | 0.84 |
| Max drawdown (3Y) | -41.4% | -15.5% |
| Dividend yield | 0.29% | 1.42% |
| Expense ratio | 0.33% | 0.08% |
| Assets under management | $44.7B | $57.9B |
| 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. XLF is a Financial fund from State Street Investment Management: $57.9B under management, 77 holdings, a 0.08% expense ratio, a 1.42% trailing dividend yield.
Portfolio overlap between SOXX and XLF
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 XLF: JPM (11.61%), BRK.B (11.25%), V (7.74%), MA (5.87%), BAC (4.94%).
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 | XLF |
|---|---|---|
| 2022 | -35.1% | -10.6% |
| 2023 | +67.1% | +12.0% |
| 2024 | +12.9% | +30.6% |
| 2025 | +40.7% | +14.9% |
| 2026 | +74.7% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SOXX and XLF good diversifiers for each other?
Reasonably. At 0.40, SOXX and XLF keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between SOXX and XLF?
Using weekly returns as of 2026-08-27: 0.40 over 3 years, with 0.18 over the last year and 0.49 over 5 years.
Is XLF a good diversifier for SOXX?
Reasonably. At 0.40, SOXX and XLF keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do SOXX and XLF overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
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