XLK vs XLRE: Correlation & Overlap
Technology Select Sector SPDR Fund (XLK) and Real Estate Select Sector SPDR Fund (XLRE) show a weak relationship: their 3-year correlation of weekly returns is 0.28. 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 XLRE?
Over the past 3 years, XLK and XLRE moved with a correlation of 0.28, which is weak. The link has loosened recently: the 1-year correlation (0.05) runs below the 3-year figure (0.28). Over 5 years the correlation is 0.49, and the annualized covariance of weekly returns is 111.2 %².
Among the 147 assets we track against XLK, XLRE ranks #125 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLK ahead by 33.9 points (+43.4% versus +9.5%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.03 to 0.71.
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 XLRE: side by side
| XLK (Technology Select Sector SPDR Fund) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +43.4% | +9.5% |
| 5-year return | +145.2% | +11.4% |
| Volatility (ann.) | 24.0% | 16.7% |
| Beta vs S&P 500 | 1.50 | 0.57 |
| Max drawdown (3Y) | -25.7% | -16.6% |
| Dividend yield | 0.45% | 3.12% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $115.4B | $8.6B |
| Sector / category | Sector ETF | Sector ETF |
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. On the fund side, XLRE sits in the Real Estate category at State Street Investment Management, with $8.6B under management, 31 holdings, a 0.08% expense ratio, a 3.12% trailing dividend yield.
Portfolio overlap between XLK and XLRE
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 XLRE: WELL (11.43%), PLD (9.06%), EQIX (7.14%), AMT (5.49%), DLR (5.01%).
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 | XLRE |
|---|---|---|
| 2022 | -27.7% | -26.2% |
| 2023 | +56.0% | +12.4% |
| 2024 | +21.6% | +5.1% |
| 2025 | +24.6% | +2.6% |
| 2026 | +31.3% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLK and XLRE good diversifiers for each other?
Reasonably. At 0.28, XLK and XLRE keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between XLK and XLRE?
The XLK/XLRE correlation stands at 0.28 on a 3-year window (1 year: 0.05, 5 years: 0.49), computed from weekly returns as of 2026-08-27.
Is XLRE a good diversifier for XLK?
Reasonably. At 0.28, XLK and XLRE keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do XLK and XLRE overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/xlk-vs-xlre.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/xlk-vs-xlre/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: XLK correlations · XLRE correlations
