VT vs XLK: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard Total World Stock ETF (VT) and Technology Select Sector SPDR Fund (XLK) carry a correlation of 0.85, a very strong link. The two funds also share 21.1% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VT and XLK?
Over the past 3 years, VT and XLK moved with a correlation of 0.85, which is very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.82 lands near the 3-year figure. Over 5 years the correlation is 0.86, and the annualized covariance of weekly returns is 283.6 %².
Within VT's tracked universe of 136 assets, XLK comes in at #32 by 3-year correlation. The last year tells two different stories: XLK led by 20.7 percentage points, +22.7% for VT against +43.4% for XLK. Stability stands out here, with the rolling one-year correlation confined to 0.72 through 0.94. Note the risk asymmetry: XLK runs 1.7 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.
VT vs XLK: side by side
| VT (Vanguard Total World Stock ETF) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.7% | +43.4% |
| 5-year return | +67.7% | +145.2% |
| Volatility (ann.) | 13.9% | 24.0% |
| Beta vs S&P 500 | 0.92 | 1.50 |
| Max drawdown (3Y) | -16.5% | -25.7% |
| Dividend yield | 1.59% | 0.45% |
| Expense ratio | 0.06% | 0.08% |
| Assets under management | $97.9B | $115.4B |
| Sector / category | ETF · Global | Sector ETF |
VT is a Global Large-Stock Blend fund from Vanguard: $97.9B under management, 5308 holdings, a 0.06% expense ratio, a 1.59% 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 VT and XLK
The two portfolios partially overlap, with 73 holdings in common adding up to 21.1% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in VT | Weight in XLK |
|---|---|---|
| NVDA | 4.20% | 13.91% |
| AAPL | 4.00% | 12.61% |
| MSFT | 3.09% | 10.10% |
| AVGO | 1.62% | 4.61% |
| MU | 0.83% | 3.99% |
| AMD | 0.69% | 4.09% |
| CSCO | 0.41% | 2.97% |
| AMAT | 0.36% | 2.55% |
| INTC | 0.35% | 2.92% |
| LRCX | 0.33% | 2.62% |
| ROP | 0.28% | 0.28% |
| PLTR | 0.24% | 2.73% |
| PANW | 0.24% | 1.84% |
| TXN | 0.22% | 1.59% |
| KLAC | 0.21% | 1.61% |
Largest positions held only by VT: AMZN (2.36%), GOOGL (1.89%), 2330 (1.61%), GOOG (1.49%), META (1.10%). 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 | VT | XLK |
|---|---|---|
| 2022 | -18.0% | -27.7% |
| 2023 | +22.0% | +56.0% |
| 2024 | +16.5% | +21.6% |
| 2025 | +22.4% | +24.6% |
| 2026 | +15.2% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VT and XLK good diversifiers for each other?
Not really. At 0.85, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between VT and XLK?
Using weekly returns as of 2026-08-27: 0.85 over 3 years, with 0.82 over the last year and 0.86 over 5 years.
Is XLK a good diversifier for VT?
Not really. At 0.85, the two trade almost as one position, and owning both buys little extra protection.
How much do VT and XLK overlap?
The two funds share 73 holdings amounting to 21.1% of weight, per issuer portfolio files dated 2026-07-31.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vt-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vt-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VT correlations · XLK correlations
