SOXX vs XLU: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Semiconductor ETF (SOXX) and Utilities Select Sector SPDR Fund (XLU) carry a correlation of 0.12, a weak link. Looking through to holdings, 0% 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 XLU?
Across a 3-year window, the weekly returns of SOXX and XLU correlate at 0.12, weak. Little has changed lately, as the 1-year reading of 0.05 lands near the 3-year figure. Stretching to 5 years gives 0.20, with an annualized covariance of 68.5 %².
Among the 127 assets we track against SOXX, XLU ranks #115 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SOXX outperformed by 105.9 percentage points (+110.0% for SOXX against +4.1% for XLU). The relationship is regime-dependent: the rolling one-year correlation swung between -0.13 and 0.51 over the past three years, so this pair behaves very differently depending on the market environment. Risk is not evenly split, since SOXX carries 2.2 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 XLU: side by side
| SOXX (iShares Semiconductor ETF) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +110.0% | +4.1% |
| 5-year return | +247.5% | +46.3% |
| Volatility (ann.) | 35.2% | 15.8% |
| Beta vs S&P 500 | 1.93 | 0.26 |
| Max drawdown (3Y) | -41.4% | -13.1% |
| Dividend yield | 0.29% | 2.70% |
| Expense ratio | 0.33% | 0.08% |
| Assets under management | $44.7B | $23.1B |
| 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. XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Portfolio overlap between SOXX and XLU
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 XLU: NEE (12.94%), SO (7.45%), DUK (7.00%), CEG (6.58%), AEP (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 | XLU |
|---|---|---|
| 2022 | -35.1% | +1.4% |
| 2023 | +67.1% | -7.2% |
| 2024 | +12.9% | +23.3% |
| 2025 | +40.7% | +16.0% |
| 2026 | +74.7% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SOXX and XLU good diversifiers for each other?
Yes: at 0.12, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between SOXX and XLU?
Using weekly returns as of 2026-08-27: 0.12 over 3 years, with 0.05 over the last year and 0.20 over 5 years.
Is XLU a good diversifier for SOXX?
Yes: at 0.12, the two have gone their own ways historically, which is what genuine diversification looks like.
How much do SOXX and XLU overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/soxx-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/soxx-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
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Hubs: SOXX correlations · XLU correlations
