VTV vs XLK: Correlation & Overlap
How closely do Vanguard Value ETF (VTV) and Technology Select Sector SPDR Fund (XLK) trade together? Their weekly returns over three years give a correlation of 0.56, which is moderate. By holdings, the two funds overlap 11.6% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VTV and XLK?
On 3 years of weekly data the VTV/XLK correlation comes out at 0.56, moderate. The link has loosened recently: the 1-year correlation (0.36) runs below the 3-year figure (0.56). The 5-year figure is 0.64, and annualized covariance runs at 161.1 %².
Among the 149 assets we track against VTV, XLK ranks #100 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLK outperformed by 17.7 percentage points (+25.7% for VTV against +43.4% for XLK). The rolling one-year correlation moved between 0.31 and 0.79 over the past three years, a moderate range. Risk is not evenly split, since XLK carries 2.0 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.
VTV vs XLK: side by side
| VTV (Vanguard Value ETF) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.7% | +43.4% |
| 5-year return | +79.1% | +145.2% |
| Volatility (ann.) | 11.9% | 24.0% |
| Beta vs S&P 500 | 0.65 | 1.50 |
| Max drawdown (3Y) | -14.5% | -25.7% |
| Dividend yield | 1.86% | 0.45% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $256.4B | $115.4B |
| Sector / category | ETF · US Style | Sector ETF |
VTV, Vanguard's Large Value fund, carries $256.4B under management, 308 holdings, a 0.03% expense ratio, a 1.86% 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 VTV and XLK
The two portfolios are largely distinct: 11.6% of the funds' weight sits in the same underlying holdings (24 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in VTV | Weight in XLK |
|---|---|---|
| MU | 3.46% | 3.99% |
| CSCO | 1.53% | 2.97% |
| IBM | 0.78% | 1.45% |
| INTC | 0.68% | 2.92% |
| ADI | 0.67% | 1.21% |
| QCOM | 0.58% | 1.15% |
| CRM | 0.53% | 1.13% |
| TXN | 0.47% | 1.59% |
| DELL | 0.44% | 0.90% |
| ACN | 0.38% | 0.75% |
| HPE | 0.24% | 0.49% |
| TEL | 0.22% | 0.40% |
| KEYS | 0.20% | 0.37% |
| GLW | 0.20% | 0.80% |
| ADBE | 0.19% | 0.74% |
Largest positions held only by VTV: JPM (3.51%), BRK.B (2.99%), XOM (2.40%), JNJ (2.30%), WMT (1.82%). Only by XLK: NVDA (13.91%), AAPL (12.61%), MSFT (10.10%), AVGO (4.61%), AMD (4.09%).
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 | VTV | XLK |
|---|---|---|
| 2022 | -2.1% | -27.7% |
| 2023 | +9.3% | +56.0% |
| 2024 | +16.0% | +21.6% |
| 2025 | +15.3% | +24.6% |
| 2026 | +19.3% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VTV and XLK good diversifiers for each other?
To a limited degree. At 0.56 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between VTV and XLK?
The VTV/XLK correlation stands at 0.56 on a 3-year window (1 year: 0.36, 5 years: 0.64), computed from weekly returns as of 2026-08-27.
Is XLK a good diversifier for VTV?
To a limited degree. At 0.56 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do VTV and XLK overlap?
The two funds share 24 holdings amounting to 11.6% of weight, per issuer portfolio files dated 2026-07-31.
Use this data
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Related comparisons
Hubs: VTV correlations · XLK correlations
