XLK vs XLP: Correlation & Overlap
Technology Select Sector SPDR Fund (XLK) and Consumer Staples Select Sector SPDR Fund (XLP) show a near-zero relationship: their 3-year correlation of weekly returns is 0.07. By holdings, the two funds overlap 0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are XLK and XLP?
Across a 3-year window, the weekly returns of XLK and XLP correlate at 0.07, near zero, meaning they move largely independently. The link has loosened recently: the 1-year correlation (-0.22) runs below the 3-year figure (0.07). Stretching to 5 years gives 0.32, with an annualized covariance of 18.3 %².
Within XLK's tracked universe of 147 assets, XLP comes in at #135 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLK ahead by 35.1 points (+43.4% versus +8.3%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.21 to 0.49. Risk is not evenly split, since XLK carries 2.2 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.
XLK vs XLP: side by side
| XLK (Technology Select Sector SPDR Fund) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +43.4% | +8.3% |
| 5-year return | +145.2% | +34.7% |
| Volatility (ann.) | 24.0% | 11.1% |
| Beta vs S&P 500 | 1.50 | 0.23 |
| Max drawdown (3Y) | -25.7% | -9.7% |
| Dividend yield | 0.45% | 2.58% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $115.4B | $14.6B |
| Sector / category | Sector ETF | Sector ETF |
XLK, State Street Investment Management's Technology fund, carries $115.4B under management, 73 holdings, a 0.08% expense ratio, a 0.45% trailing dividend yield. On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Portfolio overlap between XLK and XLP
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 XLK: NVDA (13.91%), AAPL (12.61%), MSFT (10.10%), AVGO (4.61%), AMD (4.09%). Only by XLP: WMT (9.62%), COST (8.92%), KO (7.34%), PG (7.10%), PM (6.36%).
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 | XLK | XLP |
|---|---|---|
| 2022 | -27.7% | -0.8% |
| 2023 | +56.0% | -0.8% |
| 2024 | +21.6% | +12.2% |
| 2025 | +24.6% | +1.5% |
| 2026 | +31.3% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLK and XLP good diversifiers for each other?
Yes. With a correlation of 0.07, XLK and XLP have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between XLK and XLP?
The XLK/XLP correlation stands at 0.07 on a 3-year window (1 year: -0.22, 5 years: 0.32), computed from weekly returns as of 2026-08-27.
Is XLP a good diversifier for XLK?
Yes. With a correlation of 0.07, XLK and XLP have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
How much do XLK and XLP 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/xlk-vs-xlp.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/xlk-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: XLK correlations · XLP correlations
