AGG vs QQQ: Correlation
How closely do iShares Core US Aggregate Bond ETF (AGG) and Invesco QQQ Trust (QQQ) trade together? Their weekly returns over three years give a correlation of 0.14, which is weak.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AGG and QQQ?
On 3 years of weekly data the AGG/QQQ correlation comes out at 0.14, weak. The link has tightened recently: the 1-year correlation (0.32) runs above the 3-year figure (0.14). The 5-year figure is 0.25, and annualized covariance runs at 14.4 %².
Among the 34 assets we track against AGG, QQQ ranks #22 by 3-year correlation. Correlation aside, the last 12 months split them widely, with QQQ ahead by 24.0 points (+2.3% versus +26.3%). The relationship is regime-dependent: the rolling one-year correlation swung between -0.33 and 0.52 over the past three years, so this pair behaves very differently depending on the market environment. Risk is not evenly split, since QQQ carries 3.7 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.
AGG vs QQQ: side by side
| AGG (iShares Core US Aggregate Bond ETF) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +2.3% | +26.3% |
| 5-year return | -1.1% | +95.4% |
| Volatility (ann.) | 5.3% | 19.6% |
| Beta vs S&P 500 | 0.07 | 1.28 |
| Max drawdown (3Y) | -4.8% | -22.8% |
| Dividend yield | 4.05% | 0.44% |
| Expense ratio | 0.03% | 0.18% |
| Assets under management | $137.1B | $452.8B |
| Sector / category | ETF · Bonds | ETF · US Growth & Tech |
AGG, iShares's Intermediate Core Bond fund, carries $137.1B under management, a 0.03% expense ratio, a 4.05% trailing dividend yield. QQQ is a Large Growth fund from Invesco: $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield.
Year-by-year returns
| Year | AGG | QQQ |
|---|---|---|
| 2022 | -13.0% | -32.6% |
| 2023 | +5.7% | +54.9% |
| 2024 | +1.3% | +25.6% |
| 2025 | +7.2% | +20.8% |
| 2026 | +0.3% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AGG and QQQ good diversifiers for each other?
By historical standards, yes. A correlation of 0.14 means the two rarely move for the same reasons.
FAQ
What is the correlation between AGG and QQQ?
As of 2026-08-27, the correlation of weekly returns between AGG and QQQ is 0.14 over 3 years, 0.32 over 1 year and 0.25 over 5 years.
Is QQQ a good diversifier for AGG?
By historical standards, yes. A correlation of 0.14 means the two rarely move for the same reasons.
What does a correlation of 0.14 mean?
A reading of 0.14 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: AGG correlations · QQQ correlations
