VRT vs XLK: Correlation
How closely do Vertiv (VRT) and Technology Select Sector SPDR Fund (XLK) trade together? Their weekly returns over three years give a correlation of 0.64, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VRT and XLK?
Across a 3-year window, the weekly returns of VRT and XLK correlate at 0.64, strong. The past 12 months show a weaker link (0.47) than the 3-year average (0.64). Stretching to 5 years gives 0.57, with an annualized covariance of 882.1 %².
Among the 36 assets we track against VRT, XLK ranks #15 by 3-year correlation. Correlation aside, the last 12 months split them widely, with VRT ahead by 65.1 points (+108.5% versus +43.4%). The relationship is regime-dependent: the rolling one-year correlation swung between 0.24 and 0.79 over the past three years, so this pair behaves very differently depending on the market environment. Note the risk asymmetry: VRT 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.
VRT vs XLK: side by side
| VRT (Vertiv) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +108.5% | +43.4% |
| 5-year return | +847.7% | +145.2% |
| Volatility (ann.) | 57.1% | 24.0% |
| Beta vs S&P 500 | 2.36 | 1.50 |
| Max drawdown (3Y) | -61.3% | -25.7% |
| Market cap | $103.7B | – |
| P/E (trailing) | 59.6 | – |
| Dividend yield | 0.07% | 0.45% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $115.4B |
| Sector / category | Industrials | Sector ETF |
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.
Year-by-year returns
| Year | VRT | XLK |
|---|---|---|
| 2022 | -45.3% | -27.7% |
| 2023 | +251.8% | +56.0% |
| 2024 | +136.8% | +21.6% |
| 2025 | +42.8% | +24.6% |
| 2026 | +66.3% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VRT and XLK good diversifiers for each other?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between VRT and XLK?
The VRT/XLK correlation stands at 0.64 on a 3-year window (1 year: 0.47, 5 years: 0.57), computed from weekly returns as of 2026-08-27.
Is XLK a good diversifier for VRT?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.64 mean?
A reading of 0.64 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vrt-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vrt-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VRT correlations · XLK correlations
