XLK Correlation & Overlap
Fund Strategy Analysis
Technology Select Sector SPDR Fund (XLK) is a key instrument in the Technology category. XLK offers targeted access to the Technology market. To capture tax benefits without exiting this position entirely, market participants often evaluate pairs with high correlation but distinct underlying indices.
Note: This page summarizes historical similarity metrics and does not assess tax treatment or regulatory outcomes.
Top Correlated ETFs
TechnologyNote on Overlap: Estimates are based on the most recent publicly disclosed holdings. Leveraged/Inverse products often use swaps resulting in low physical overlap despite high correlation.
Benchmark Similarity: ETFs tracking similar broad-market or sector-specific benchmarks often exhibit extremely high correlation. Investors typically review additional factors such as index methodology when evaluating similarity.
* Correlation calculated using 2-year daily price returns.
Wash Sale Re-Entry Date (Reference Tool)
If you sold XLK at a loss, U.S. wash sale rules generally restrict repurchasing the same or a substantially identical security within 30 days.
*For informational purposes only. Consult a tax professional regarding IRC §1091. This tool calculates the 31st day following a sale.
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Related ETF Research
What is Correlation?
Correlation measures the historical relationship between two assets. A value of 1.00 (100%) means they move perfectly in sync. For tax loss harvesting, high correlation is generally desired to stay in the market while realizing a loss.
Index Methodology
Under the wash sale rule, "substantially identical" assets are disallowed for loss claims. Many investors argue that ETFs tracking different indices (e.g., S&P 500 vs. Russell 1000) are not substantially identical.
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