VOO vs XLK: Correlation & Overlap
Vanguard S&P 500 ETF (VOO) and Technology Select Sector SPDR Fund (XLK) show a very strong relationship: their 3-year correlation of weekly returns is 0.90. The two funds also share 36.6% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VOO and XLK?
Over the past 3 years, VOO and XLK moved with a correlation of 0.90, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.87 over 1 year against 0.90 over 3. Over 5 years the correlation is 0.91, and the annualized covariance of weekly returns is 311.6 %².
By 3-year correlation, XLK places #16 of the 124 assets tracked against VOO. Their recent paths diverged sharply: over the last 12 months XLK outperformed by 22.8 percentage points (+20.6% for VOO against +43.4% for XLK). The link looks structural: the rolling one-year correlation barely moved, holding between 0.82 and 0.95. One caveat on sizing: XLK is 1.7 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.
VOO vs XLK: side by side
| VOO (Vanguard S&P 500 ETF) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.6% | +43.4% |
| 5-year return | +83.0% | +145.2% |
| Volatility (ann.) | 14.4% | 24.0% |
| Beta vs S&P 500 | 0.99 | 1.50 |
| Max drawdown (3Y) | -18.7% | -25.7% |
| Dividend yield | 1.07% | 0.45% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $1,686.9B | $115.4B |
| Sector / category | ETF · US Large Cap | Sector ETF |
VOO is a Large Blend fund from Vanguard: $1,686.9B under management, 503 holdings, a 0.03% expense ratio, a 1.07% 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 VOO and XLK
The two portfolios partially overlap, with 73 holdings in common adding up to 36.6% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in VOO | Weight in XLK |
|---|---|---|
| NVDA | 7.56% | 13.91% |
| AAPL | 7.05% | 12.61% |
| MSFT | 5.37% | 10.10% |
| AVGO | 2.87% | 4.61% |
| MU | 1.44% | 3.99% |
| AMD | 1.21% | 4.09% |
| CSCO | 0.71% | 2.97% |
| INTC | 0.66% | 2.92% |
| AMAT | 0.63% | 2.55% |
| LRCX | 0.57% | 2.62% |
| PLTR | 0.44% | 2.73% |
| PANW | 0.42% | 1.84% |
| TXN | 0.39% | 1.59% |
| KLAC | 0.37% | 1.61% |
| ORCL | 0.34% | 1.69% |
Largest positions held only by VOO: AMZN (4.13%), GOOGL (3.25%), GOOG (2.62%), META (1.90%), JPM (1.47%). Only by XLK: .
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-07-31. Top 15 common positions shown.
Year-by-year returns
| Year | VOO | XLK |
|---|---|---|
| 2022 | -18.2% | -27.7% |
| 2023 | +26.3% | +56.0% |
| 2024 | +25.0% | +21.6% |
| 2025 | +17.8% | +24.6% |
| 2026 | +13.7% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VOO and XLK good diversifiers for each other?
No. With a correlation of 0.90, VOO and XLK move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between VOO and XLK?
The VOO/XLK correlation stands at 0.90 on a 3-year window (1 year: 0.87, 5 years: 0.91), computed from weekly returns as of 2026-08-27.
Is XLK a good diversifier for VOO?
No. With a correlation of 0.90, VOO and XLK move nearly in lockstep, so holding both adds very little diversification.
How much do VOO and XLK overlap?
The two funds share 73 holdings amounting to 36.6% of weight, per issuer portfolio files dated 2026-07-31.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/voo-vs-xlk.json
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[](https://www.pairbook.io/pair/voo-vs-xlk/)
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Related comparisons
Hubs: VOO correlations · XLK correlations
