EFA vs QQQ: Correlation & Overlap
iShares MSCI EAFE ETF (EFA) and Invesco QQQ Trust (QQQ) show a strong relationship: their 3-year correlation of weekly returns is 0.66. Looking through to holdings, 1.3% 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 EFA and QQQ?
On 3 years of weekly data the EFA/QQQ correlation comes out at 0.66, strong. Little has changed lately, as the 1-year reading of 0.60 lands near the 3-year figure. The 5-year figure is 0.70, and annualized covariance runs at 191.4 %².
Among the 109 assets we track against EFA, QQQ ranks #47 by 3-year correlation. Neither side won the trailing year by much: +21.9% against +26.3%. The rolling one-year correlation stayed in a tight band between 0.57 and 0.74 over the past three years, which points to a structural rather than episodic relationship.
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.
EFA vs QQQ: side by side
| EFA (iShares MSCI EAFE ETF) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +21.9% | +26.3% |
| 5-year return | +56.7% | +95.4% |
| Volatility (ann.) | 14.9% | 19.6% |
| Beta vs S&P 500 | 0.77 | 1.28 |
| Max drawdown (3Y) | -14.1% | -22.8% |
| Dividend yield | 3.19% | 0.44% |
| Expense ratio | 0.32% | 0.18% |
| Assets under management | $78.0B | $452.8B |
| Sector / category | ETF · International | ETF · US Growth & Tech |
EFA, iShares's Foreign Large Blend fund, carries $78.0B under management, 666 holdings, a 0.32% expense ratio, a 3.19% 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 EFA and QQQ
The two portfolios are largely distinct: 1.3% of the funds' weight sits in the same underlying holdings (6 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in EFA | Weight in QQQ |
|---|---|---|
| ASML | 2.99% | 0.71% |
| NBIS | 0.19% | 0.21% |
| ROP | 1.42% | 0.18% |
| FER | 0.12% | 0.19% |
| CCEP | 0.10% | 0.22% |
| ADP | 0.02% | 0.50% |
Largest positions held only by EFA: HSBA (1.57%), SAN (1.38%), NOVN (1.28%), SHEL (1.14%), NESN (1.13%). 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 6 common positions shown.
Year-by-year returns
| Year | EFA | QQQ |
|---|---|---|
| 2022 | -14.4% | -32.6% |
| 2023 | +18.4% | +54.9% |
| 2024 | +3.5% | +25.6% |
| 2025 | +31.5% | +20.8% |
| 2026 | +14.3% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EFA and QQQ good diversifiers for each other?
Somewhat, no more. With 0.66 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between EFA and QQQ?
As of 2026-08-27, the correlation of weekly returns between EFA and QQQ is 0.66 over 3 years, 0.60 over 1 year and 0.70 over 5 years.
Is QQQ a good diversifier for EFA?
Somewhat, no more. With 0.66 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do EFA and QQQ overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 1.3% by weight over 6 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/efa-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/efa-vs-qqq/)
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Related comparisons
Hubs: EFA correlations · QQQ correlations
