USMV vs XLK: Correlation & Overlap
iShares MSCI USA Min Vol Factor ETF (USMV) and Technology Select Sector SPDR Fund (XLK) show a moderate relationship: their 3-year correlation of weekly returns is 0.53. By holdings, the two funds overlap 25.0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are USMV and XLK?
On 3 years of weekly data the USMV/XLK correlation comes out at 0.53, moderate. The past 12 months show a weaker link (0.29) than the 3-year average (0.53). The 5-year figure is 0.65, and annualized covariance runs at 125.2 %².
By 3-year correlation, XLK places #63 of the 125 assets tracked against USMV. Correlation aside, the last 12 months split them widely, with XLK ahead by 33.3 points (+10.1% versus +43.4%). This link changes with the market regime, having swung between 0.20 and 0.73 on a rolling one-year basis. Note the risk asymmetry: XLK runs 2.4 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.
USMV vs XLK: side by side
| USMV (iShares MSCI USA Min Vol Factor ETF) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +10.1% | +43.4% |
| 5-year return | +42.3% | +145.2% |
| Volatility (ann.) | 9.9% | 24.0% |
| Beta vs S&P 500 | 0.51 | 1.50 |
| Max drawdown (3Y) | -9.4% | -25.7% |
| Dividend yield | 1.48% | 0.45% |
| Expense ratio | 0.15% | 0.08% |
| Assets under management | $23.6B | $115.4B |
| Sector / category | ETF · US Style | Sector ETF |
USMV is a Large Blend fund from iShares: $23.6B under management, 164 holdings, a 0.15% expense ratio, a 1.48% 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 USMV and XLK
The two portfolios partially overlap. Weighing the shared positions, 25.0% of the two funds is identical, spread across 46 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in USMV | Weight in XLK |
|---|---|---|
| MSFT | 1.68% | 10.10% |
| CSCO | 1.38% | 2.97% |
| NVDA | 1.35% | 13.91% |
| APH | 1.54% | 1.33% |
| PLTR | 1.19% | 2.73% |
| IBM | 1.03% | 1.45% |
| CRM | 0.96% | 1.13% |
| PANW | 0.94% | 1.84% |
| AVGO | 0.90% | 4.61% |
| AAPL | 0.88% | 12.61% |
| NOW | 0.93% | 0.87% |
| ACN | 0.71% | 0.75% |
| MU | 0.71% | 3.99% |
| TXN | 0.68% | 1.59% |
| AMD | 0.67% | 4.09% |
Largest positions held only by USMV: NEM (1.65%), VRTX (1.63%), JNJ (1.58%), WELL (1.57%), MRK (1.54%). Only by XLK: INTC (2.92%), LRCX (2.62%), KLAC (1.61%), SNDK (1.49%), DELL (0.90%).
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 | USMV | XLK |
|---|---|---|
| 2022 | -9.4% | -27.7% |
| 2023 | +10.3% | +56.0% |
| 2024 | +15.7% | +21.6% |
| 2025 | +7.6% | +24.6% |
| 2026 | +9.1% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are USMV and XLK good diversifiers for each other?
Only partially. A correlation of 0.53 means USMV and XLK 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 USMV and XLK?
Using weekly returns as of 2026-08-27: 0.53 over 3 years, with 0.29 over the last year and 0.65 over 5 years.
Is XLK a good diversifier for USMV?
Only partially. A correlation of 0.53 means USMV and XLK share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do USMV and XLK overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 25.0% by weight over 46 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/usmv-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/usmv-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: USMV correlations · XLK correlations
