XLK vs XLU: Correlation & Overlap
Measured on weekly returns over the past three years, Technology Select Sector SPDR Fund (XLK) and Utilities Select Sector SPDR Fund (XLU) carry a correlation of 0.07, a near-zero link. 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 XLK and XLU?
On 3 years of weekly data the XLK/XLU correlation comes out at 0.07, near zero, meaning they move largely independently. Lately the two have drifted apart, with the 1-year correlation at -0.16 versus 0.07 over 3 years. The 5-year figure is 0.25, and annualized covariance runs at 26.9 %².
By 3-year correlation, XLU places #136 of the 147 assets tracked against XLK. The last year tells two different stories: XLK led by 39.3 percentage points, +43.4% for XLK against +4.1% for XLU. This link changes with the market regime, having swung between -0.22 and 0.51 on a rolling one-year basis. Note the risk asymmetry: XLK runs 1.5 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 XLU: side by side
| XLK (Technology Select Sector SPDR Fund) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +43.4% | +4.1% |
| 5-year return | +145.2% | +46.3% |
| Volatility (ann.) | 24.0% | 15.8% |
| Beta vs S&P 500 | 1.50 | 0.26 |
| Max drawdown (3Y) | -25.7% | -13.1% |
| Dividend yield | 0.45% | 2.70% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $115.4B | $23.1B |
| 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. XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Portfolio overlap between XLK and XLU
The two portfolios are largely distinct: 0% of the funds' weight sits in the same underlying holdings (0 common positions). Correlation tells you they move together; overlap tells you why.
Largest positions held only by XLK: NVDA (13.91%), AAPL (12.61%), MSFT (10.10%), AVGO (4.61%), AMD (4.09%). Only by XLU: NEE (12.94%), SO (7.45%), DUK (7.00%), CEG (6.58%), AEP (4.94%).
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 | XLU |
|---|---|---|
| 2022 | -27.7% | +1.4% |
| 2023 | +56.0% | -7.2% |
| 2024 | +21.6% | +23.3% |
| 2025 | +24.6% | +16.0% |
| 2026 | +31.3% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLK and XLU good diversifiers for each other?
By historical standards, yes. A correlation of 0.07 means the two rarely move for the same reasons.
FAQ
What is the correlation between XLK and XLU?
The XLK/XLU correlation stands at 0.07 on a 3-year window (1 year: -0.16, 5 years: 0.25), computed from weekly returns as of 2026-08-27.
Is XLU a good diversifier for XLK?
By historical standards, yes. A correlation of 0.07 means the two rarely move for the same reasons.
How much do XLK and XLU 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-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/xlk-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: XLK correlations · XLU correlations
