VTI vs XLK: Correlation & Overlap
Vanguard Total Stock Market ETF (VTI) and Technology Select Sector SPDR Fund (XLK) show a very strong relationship: their 3-year correlation of weekly returns is 0.89. The two funds also share 32.2% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VTI and XLK?
Over the past 3 years, VTI and XLK moved with a correlation of 0.89, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.87) sits close to the 3-year figure. Over 5 years the correlation is 0.90, and the annualized covariance of weekly returns is 312.2 %².
By 3-year correlation, XLK places #19 of the 157 assets tracked against VTI. The last year tells two different stories: XLK led by 22.7 percentage points, +20.7% for VTI against +43.4% for XLK. The rolling one-year correlation stayed in a tight band between 0.80 and 0.95 over the past three years, which points to a structural rather than episodic relationship. Risk is not evenly split, since XLK carries 1.6 times the volatility of the other side.
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.
VTI vs XLK: side by side
| VTI (Vanguard Total Stock Market ETF) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.7% | +43.4% |
| 5-year return | +74.8% | +145.2% |
| Volatility (ann.) | 14.6% | 24.0% |
| Beta vs S&P 500 | 1.01 | 1.50 |
| Max drawdown (3Y) | -19.3% | -25.7% |
| Dividend yield | 1.06% | 0.45% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $2,290.0B | $115.4B |
| Sector / category | ETF · US Large Cap | Sector ETF |
VTI, Vanguard's Large Blend fund, carries $2,290.0B under management, 3140 holdings, a 0.03% expense ratio, a 1.06% 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 VTI and XLK
The two portfolios partially overlap: 32.2% of the funds' weight sits in the same underlying holdings (72 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in VTI | Weight in XLK |
|---|---|---|
| NVDA | 6.42% | 13.91% |
| AAPL | 6.31% | 12.61% |
| MSFT | 4.80% | 10.10% |
| AVGO | 2.56% | 4.61% |
| MU | 1.29% | 3.99% |
| AMD | 1.08% | 4.09% |
| CSCO | 0.57% | 2.97% |
| AMAT | 0.56% | 2.55% |
| LRCX | 0.51% | 2.62% |
| INTC | 0.50% | 2.92% |
| PANW | 0.38% | 1.84% |
| PLTR | 0.37% | 2.73% |
| TXN | 0.35% | 1.59% |
| KLAC | 0.33% | 1.61% |
| ORCL | 0.31% | 1.69% |
Largest positions held only by VTI: AMZN (3.66%), GOOGL (2.91%), GOOG (2.32%), META (1.70%), LLY (1.36%). Only by XLK: NXPI (0.38%).
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 | VTI | XLK |
|---|---|---|
| 2022 | -19.5% | -27.7% |
| 2023 | +26.0% | +56.0% |
| 2024 | +23.8% | +21.6% |
| 2025 | +17.1% | +24.6% |
| 2026 | +14.2% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VTI and XLK good diversifiers for each other?
No. With a correlation of 0.89, VTI and XLK move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between VTI and XLK?
The VTI/XLK correlation stands at 0.89 on a 3-year window (1 year: 0.87, 5 years: 0.90), computed from weekly returns as of 2026-08-27.
Is XLK a good diversifier for VTI?
No. With a correlation of 0.89, VTI and XLK move nearly in lockstep, so holding both adds very little diversification.
How much do VTI and XLK overlap?
Per the issuers' own portfolio disclosures (2026-07-31), the overlap is 32.2% by weight over 72 common positions.
Use this data
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[](https://www.pairbook.io/pair/vti-vs-xlk/)
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Hubs: VTI correlations · XLK correlations
