XLI vs XLK: Correlation & Overlap
Industrial Select Sector SPDR Fund (XLI) and Technology Select Sector SPDR Fund (XLK) show a strong relationship: their 3-year correlation of weekly returns is 0.64. 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 XLI and XLK?
Across a 3-year window, the weekly returns of XLI and XLK correlate at 0.64, strong. The past 12 months show a weaker link (0.42) than the 3-year average (0.64). Stretching to 5 years gives 0.70, with an annualized covariance of 243.0 %².
By 3-year correlation, XLK places #78 of the 204 assets tracked against XLI. Their recent paths diverged sharply: over the last 12 months XLK outperformed by 25.1 percentage points (+18.3% for XLI against +43.4% for XLK). On a rolling one-year basis the correlation drifted between 0.35 and 0.83, a moderate band. One caveat on sizing: XLK is 1.5 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
XLI vs XLK: side by side
| XLI (Industrial Select Sector SPDR Fund) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +18.3% | +43.4% |
| 5-year return | +84.0% | +145.2% |
| Volatility (ann.) | 15.7% | 24.0% |
| Beta vs S&P 500 | 0.89 | 1.50 |
| Max drawdown (3Y) | -18.5% | -25.7% |
| Dividend yield | 1.15% | 0.45% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $32.9B | $115.4B |
| Sector / category | Sector ETF | Sector ETF |
XLI, State Street Investment Management's Industrials fund, carries $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% 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 XLI and XLK
The two portfolios are largely distinct. Weighing the shared positions, 0% of the two funds is identical, spread across 0 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by XLI: CAT (6.68%), GE (6.52%), RTX (5.04%), GEV (4.52%), UNP (3.25%). 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 | XLI | XLK |
|---|---|---|
| 2022 | -5.6% | -27.7% |
| 2023 | +18.1% | +56.0% |
| 2024 | +17.3% | +21.6% |
| 2025 | +19.3% | +24.6% |
| 2026 | +15.9% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLI and XLK good diversifiers for each other?
To a limited degree. At 0.64 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 XLI and XLK?
Using weekly returns as of 2026-08-27: 0.64 over 3 years, with 0.42 over the last year and 0.70 over 5 years.
Is XLK a good diversifier for XLI?
To a limited degree. At 0.64 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 XLI 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/xli-vs-xlk.json
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[](https://www.pairbook.io/pair/xli-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: XLI correlations · XLK correlations
