XLK vs XLV: Correlation & Overlap
Technology Select Sector SPDR Fund (XLK) and Health Care Select Sector SPDR Fund (XLV) show a weak relationship: their 3-year correlation of weekly returns is 0.18. 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 XLV?
On 3 years of weekly data the XLK/XLV correlation comes out at 0.18, weak. The past 12 months show a weaker link (-0.17) than the 3-year average (0.18). The 5-year figure is 0.37, and annualized covariance runs at 62.9 %².
By 3-year correlation, XLV places #134 of the 147 assets tracked against XLK. Correlation aside, the last 12 months split them widely, with XLK ahead by 15.9 points (+43.4% versus +27.5%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.15 to 0.50. Risk is not evenly split, since XLK carries 1.6 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 XLV: side by side
| XLK (Technology Select Sector SPDR Fund) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +43.4% | +27.5% |
| 5-year return | +145.2% | +37.4% |
| Volatility (ann.) | 24.0% | 14.7% |
| Beta vs S&P 500 | 1.50 | 0.42 |
| Max drawdown (3Y) | -25.7% | -17.1% |
| Dividend yield | 0.45% | 1.56% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $115.4B | $41.7B |
| Sector / category | Sector ETF | Sector ETF |
XLK is a Technology fund from State Street Investment Management: $115.4B under management, 73 holdings, a 0.08% expense ratio, a 0.45% trailing dividend yield. On the fund side, XLV sits in the Health category at State Street Investment Management, with $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield.
Portfolio overlap between XLK and XLV
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 XLV: LLY (15.03%), JNJ (10.38%), ABBV (7.42%), MRK (6.04%), UNH (5.82%).
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 | XLV |
|---|---|---|
| 2022 | -27.7% | -2.1% |
| 2023 | +56.0% | +2.1% |
| 2024 | +21.6% | +2.5% |
| 2025 | +24.6% | +14.5% |
| 2026 | +31.3% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLK and XLV good diversifiers for each other?
Yes. With a correlation of 0.18, XLK and XLV have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between XLK and XLV?
As of 2026-08-27, the correlation of weekly returns between XLK and XLV is 0.18 over 3 years, -0.17 over 1 year and 0.37 over 5 years.
Is XLV a good diversifier for XLK?
Yes. With a correlation of 0.18, XLK and XLV have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
How much do XLK and XLV overlap?
The two funds share 0 holdings amounting to 0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/xlk-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/xlk-vs-xlv/)
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Hubs: XLK correlations · XLV correlations
