XLE vs XLK: Correlation & Overlap
How closely do Energy Select Sector SPDR Fund (XLE) and Technology Select Sector SPDR Fund (XLK) trade together? Their weekly returns over three years give a correlation of 0.01, which is near-zero. Looking through to holdings, 0% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are XLE and XLK?
Across a 3-year window, the weekly returns of XLE and XLK correlate at 0.01, near zero, meaning they move largely independently. The link has loosened recently: the 1-year correlation (-0.47) runs below the 3-year figure (0.01). Stretching to 5 years gives 0.10, with an annualized covariance of 6.4 %².
Within XLE's tracked universe of 121 assets, XLK comes in at #111 by 3-year correlation. Their 12-month results are close: +44.0% for XLE against +43.4% for XLK. This link changes with the market regime, having swung between -0.49 and 0.47 on a rolling one-year basis.
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.
XLE vs XLK: side by side
| XLE (Energy Select Sector SPDR Fund) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +44.0% | +43.4% |
| 5-year return | +206.7% | +145.2% |
| Volatility (ann.) | 23.1% | 24.0% |
| Beta vs S&P 500 | 0.27 | 1.50 |
| Max drawdown (3Y) | -20.1% | -25.7% |
| Dividend yield | 2.55% | 0.45% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $39.2B | $115.4B |
| Sector / category | Sector ETF | Sector ETF |
XLE, State Street Investment Management's Equity Energy fund, carries $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% 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 XLE and XLK
The two portfolios are largely distinct, with 0 holdings in common adding up to 0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by XLE: XOM (20.03%), CVX (14.84%), COP (6.30%), MPC (5.40%), PSX (5.37%). 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 2026-08-26.
Year-by-year returns
| Year | XLE | XLK |
|---|---|---|
| 2022 | +64.3% | -27.7% |
| 2023 | -0.6% | +56.0% |
| 2024 | +5.6% | +21.6% |
| 2025 | +7.9% | +24.6% |
| 2026 | +41.2% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLE and XLK good diversifiers for each other?
By historical standards, yes. A correlation of 0.01 means the two rarely move for the same reasons.
FAQ
What is the correlation between XLE and XLK?
Using weekly returns as of 2026-08-27: 0.01 over 3 years, with -0.47 over the last year and 0.10 over 5 years.
Is XLK a good diversifier for XLE?
By historical standards, yes. A correlation of 0.01 means the two rarely move for the same reasons.
How much do XLE and XLK overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/xle-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/xle-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: XLE correlations · XLK correlations
