EEM vs QQQ: Correlation & Overlap
iShares MSCI Emerging Markets ETF (EEM) and Invesco QQQ Trust (QQQ) show a strong relationship: their 3-year correlation of weekly returns is 0.71. By holdings, the two funds overlap 0.3% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EEM and QQQ?
On 3 years of weekly data the EEM/QQQ correlation comes out at 0.71, strong. Little has changed lately, as the 1-year reading of 0.75 lands near the 3-year figure. The 5-year figure is 0.65, and annualized covariance runs at 247.9 %².
Among the 67 assets we track against EEM, QQQ ranks #17 by 3-year correlation. On 12-month performance EEM holds a 11.8-point edge, +38.1% against +26.3%. The rolling one-year correlation moved between 0.51 and 0.79 over the past three years, a moderate range.
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.
EEM vs QQQ: side by side
| EEM (iShares MSCI Emerging Markets ETF) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +38.1% | +26.3% |
| 5-year return | +47.1% | +95.4% |
| Volatility (ann.) | 18.0% | 19.6% |
| Beta vs S&P 500 | 0.85 | 1.28 |
| Max drawdown (3Y) | -17.3% | -22.8% |
| Dividend yield | 1.73% | 0.44% |
| Expense ratio | 0.72% | 0.18% |
| Assets under management | $29.2B | $452.8B |
| Sector / category | ETF · International | ETF · US Growth & Tech |
EEM, iShares's Diversified Emerging Mkts fund, carries $29.2B under management, 968 holdings, a 0.72% expense ratio, a 1.73% 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.
Portfolio overlap between EEM and QQQ
The two portfolios are largely distinct. Weighing the shared positions, 0.3% of the two funds is identical, spread across 1 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in EEM | Weight in QQQ |
|---|---|---|
| PDD | 0.40% | 0.26% |
Largest positions held only by EEM: 2330 (15.14%), 005930 (7.15%), 000660 (5.45%), 700 (2.83%), 9988 (2.02%). Only by QQQ: NVDA (8.15%), AAPL (7.39%), MSFT (5.93%), MU (4.69%), AMZN (4.50%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 1 common positions shown.
Year-by-year returns
| Year | EEM | QQQ |
|---|---|---|
| 2022 | -20.6% | -32.6% |
| 2023 | +8.9% | +54.9% |
| 2024 | +6.5% | +25.6% |
| 2025 | +34.0% | +20.8% |
| 2026 | +24.2% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and QQQ good diversifiers for each other?
Somewhat, no more. With 0.71 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between EEM and QQQ?
Using weekly returns as of 2026-08-27: 0.71 over 3 years, with 0.75 over the last year and 0.65 over 5 years.
Is QQQ a good diversifier for EEM?
Somewhat, no more. With 0.71 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do EEM and QQQ overlap?
0.3% by weight, across 1 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/eem-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/eem-vs-qqq/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: EEM correlations · QQQ correlations
