SOXX vs XLY: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Semiconductor ETF (SOXX) and Consumer Discretionary Select Sector SPDR Fund (XLY) carry a correlation of 0.63, a strong 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 XLY?
Across a 3-year window, the weekly returns of SOXX and XLY correlate at 0.63, strong. The past 12 months show a weaker link (0.49) than the 3-year average (0.63). Stretching to 5 years gives 0.69, with an annualized covariance of 432.4 %².
Among the 127 assets we track against SOXX, XLY ranks #75 by 3-year correlation. The last year tells two different stories: SOXX led by 110.1 percentage points, +110.0% for SOXX against -0.1% for XLY. On a rolling one-year basis the correlation drifted between 0.49 and 0.78, a moderate band. Note the risk asymmetry: SOXX runs 1.8 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 XLY: side by side
| SOXX (iShares Semiconductor ETF) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +110.0% | -0.1% |
| 5-year return | +247.5% | +31.8% |
| Volatility (ann.) | 35.2% | 19.7% |
| Beta vs S&P 500 | 1.93 | 1.15 |
| Max drawdown (3Y) | -41.4% | -26.0% |
| Dividend yield | 0.29% | 0.78% |
| Expense ratio | 0.33% | 0.08% |
| Assets under management | $44.7B | $22.5B |
| 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. XLY is a Consumer Cyclical fund from State Street Investment Management: $22.5B under management, 47 holdings, a 0.08% expense ratio, a 0.78% trailing dividend yield.
Portfolio overlap between SOXX and XLY
The two portfolios are largely distinct, with 0 holdings in common adding up to 0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by SOXX: NVDA (8.87%), MU (8.64%), AMD (8.33%), AVGO (7.11%), MRVL (5.34%). Only by XLY: AMZN (24.32%), TSLA (16.18%), HD (5.54%), MCD (4.11%), BKNG (4.04%).
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 | XLY |
|---|---|---|
| 2022 | -35.1% | -36.3% |
| 2023 | +67.1% | +39.6% |
| 2024 | +12.9% | +26.5% |
| 2025 | +40.7% | +7.4% |
| 2026 | +74.7% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SOXX and XLY good diversifiers for each other?
Only partially. A correlation of 0.63 means SOXX and XLY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between SOXX and XLY?
As of 2026-08-27, the correlation of weekly returns between SOXX and XLY is 0.63 over 3 years, 0.49 over 1 year and 0.69 over 5 years.
Is XLY a good diversifier for SOXX?
Only partially. A correlation of 0.63 means SOXX and XLY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do SOXX and XLY 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-xly.json
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Hubs: SOXX correlations · XLY correlations
