SOXX vs XLK: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Semiconductor ETF (SOXX) and Technology Select Sector SPDR Fund (XLK) carry a correlation of 0.89, a very strong link. Looking through to holdings, 38.4% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SOXX and XLK?
Across a 3-year window, the weekly returns of SOXX and XLK correlate at 0.89, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.85) sits close to the 3-year figure. Stretching to 5 years gives 0.89, with an annualized covariance of 753.4 %².
XLK is one of the assets that tracks SOXX most closely: it ranks #2 out of the 127 assets we track against SOXX. Correlation aside, the last 12 months split them widely, with SOXX ahead by 66.6 points (+110.0% versus +43.4%). The link looks structural: the rolling one-year correlation barely moved, holding between 0.81 and 0.95.
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 XLK: side by side
| SOXX (iShares Semiconductor ETF) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +110.0% | +43.4% |
| 5-year return | +247.5% | +145.2% |
| Volatility (ann.) | 35.2% | 24.0% |
| Beta vs S&P 500 | 1.93 | 1.50 |
| Max drawdown (3Y) | -41.4% | -25.7% |
| Dividend yield | 0.29% | 0.45% |
| Expense ratio | 0.33% | 0.08% |
| Assets under management | $44.7B | $115.4B |
| Sector / category | ETF · Thematic | Sector ETF |
SOXX, iShares's Technology fund, carries $44.7B under management, 30 holdings, a 0.33% expense ratio, a 0.29% trailing dividend yield. 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.
Portfolio overlap between SOXX and XLK
The two portfolios partially overlap, with 18 holdings in common adding up to 38.4% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in SOXX | Weight in XLK |
|---|---|---|
| NVDA | 8.87% | 13.91% |
| AVGO | 7.11% | 4.61% |
| AMD | 8.33% | 4.09% |
| MU | 8.64% | 3.99% |
| INTC | 4.97% | 2.92% |
| LRCX | 4.39% | 2.62% |
| AMAT | 4.76% | 2.55% |
| KLAC | 4.27% | 1.61% |
| TXN | 3.83% | 1.59% |
| MRVL | 5.34% | 1.44% |
| ADI | 4.01% | 1.21% |
| QCOM | 2.91% | 1.15% |
| MPWR | 3.43% | 0.43% |
| TER | 3.14% | 0.38% |
| NXPI | 3.10% | 0.38% |
Largest positions held only by SOXX: TSM (4.64%), ASML (2.51%), ALAB (2.26%), CRDO (2.08%), ASX (1.25%). Only by XLK: AAPL (12.61%), MSFT (10.10%), CSCO (2.97%), PLTR (2.73%), PANW (1.84%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | SOXX | XLK |
|---|---|---|
| 2022 | -35.1% | -27.7% |
| 2023 | +67.1% | +56.0% |
| 2024 | +12.9% | +21.6% |
| 2025 | +40.7% | +24.6% |
| 2026 | +74.7% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SOXX and XLK good diversifiers for each other?
No. With a correlation of 0.89, SOXX and XLK move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between SOXX and XLK?
As of 2026-08-27, the correlation of weekly returns between SOXX and XLK is 0.89 over 3 years, 0.85 over 1 year and 0.89 over 5 years.
Is XLK a good diversifier for SOXX?
No. With a correlation of 0.89, SOXX and XLK move nearly in lockstep, so holding both adds very little diversification.
How much do SOXX and XLK overlap?
The two funds share 18 holdings amounting to 38.4% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
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Hubs: SOXX correlations · XLK correlations
