SOXX vs XLP: Correlation & Overlap
iShares Semiconductor ETF (SOXX) and Consumer Staples Select Sector SPDR Fund (XLP) show a weak relationship: their 3-year correlation of weekly returns is 0.11. 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 XLP?
Across a 3-year window, the weekly returns of SOXX and XLP correlate at 0.11, weak. The past 12 months show a weaker link (0.00) than the 3-year average (0.11). Stretching to 5 years gives 0.24, with an annualized covariance of 42.1 %².
By 3-year correlation, XLP places #116 of the 127 assets tracked against SOXX. The last year tells two different stories: SOXX led by 101.7 percentage points, +110.0% for SOXX against +8.3% for XLP. On a rolling one-year basis the correlation drifted between 0.01 and 0.29, a moderate band. One caveat on sizing: SOXX is 3.2 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 XLP: side by side
| SOXX (iShares Semiconductor ETF) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +110.0% | +8.3% |
| 5-year return | +247.5% | +34.7% |
| Volatility (ann.) | 35.2% | 11.1% |
| Beta vs S&P 500 | 1.93 | 0.23 |
| Max drawdown (3Y) | -41.4% | -9.7% |
| Dividend yield | 0.29% | 2.58% |
| Expense ratio | 0.33% | 0.08% |
| Assets under management | $44.7B | $14.6B |
| 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. On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Portfolio overlap between SOXX and XLP
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 XLP: WMT (9.62%), COST (8.92%), KO (7.34%), PG (7.10%), PM (6.36%).
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 | XLP |
|---|---|---|
| 2022 | -35.1% | -0.8% |
| 2023 | +67.1% | -0.8% |
| 2024 | +12.9% | +12.2% |
| 2025 | +40.7% | +1.5% |
| 2026 | +74.7% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SOXX and XLP good diversifiers for each other?
Yes: at 0.11, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between SOXX and XLP?
The SOXX/XLP correlation stands at 0.11 on a 3-year window (1 year: 0.00, 5 years: 0.24), computed from weekly returns as of 2026-08-27.
Is XLP a good diversifier for SOXX?
Yes: at 0.11, the two have gone their own ways historically, which is what genuine diversification looks like.
How much do SOXX and XLP overlap?
The two funds share 0 holdings amounting to 0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/soxx-vs-xlp.json
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The core API is free. Terms and every endpoint in the API documentation.
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Hubs: SOXX correlations · XLP correlations
