EFA vs QQQM: Correlation & Overlap
How closely do iShares MSCI EAFE ETF (EFA) and Invesco Nasdaq 100 ETF (QQQM) trade together? Their weekly returns over three years give a correlation of 0.66, which is strong. The two funds also share 1.3% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EFA and QQQM?
Across a 3-year window, the weekly returns of EFA and QQQM correlate at 0.66, strong. Recent behaviour matches the longer record: 0.60 over 1 year against 0.66 over 3. Stretching to 5 years gives 0.70, with an annualized covariance of 190.5 %².
Within EFA's tracked universe of 109 assets, QQQM comes in at #48 by 3-year correlation. Neither side won the trailing year by much: +21.9% against +26.4%. Stability stands out here, with the rolling one-year correlation confined to 0.57 through 0.74.
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 QQQM: side by side
| EFA (iShares MSCI EAFE ETF) | QQQM (Invesco Nasdaq 100 ETF) | |
|---|---|---|
| 1-year return | +21.9% | +26.4% |
| 5-year return | +56.7% | +96.1% |
| Volatility (ann.) | 14.9% | 19.5% |
| Beta vs S&P 500 | 0.77 | 1.28 |
| Max drawdown (3Y) | -14.1% | -22.7% |
| Dividend yield | 3.19% | 0.46% |
| Expense ratio | 0.32% | 0.15% |
| Assets under management | $78.0B | $97.1B |
| Sector / category | ETF · International | ETF · US Growth & Tech |
EFA is a Foreign Large Blend fund from iShares: $78.0B under management, 666 holdings, a 0.32% expense ratio, a 3.19% trailing dividend yield. QQQM is a Large Growth fund from Invesco: $97.1B under management, 105 holdings, a 0.15% expense ratio, a 0.46% trailing dividend yield.
Portfolio overlap between EFA and QQQM
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 QQQM |
|---|---|---|
| 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 QQQM: 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 | QQQM |
|---|---|---|
| 2022 | -14.4% | -32.5% |
| 2023 | +18.4% | +55.0% |
| 2024 | +3.5% | +25.7% |
| 2025 | +31.5% | +20.9% |
| 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 QQQM 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 QQQM?
As of 2026-08-27, the correlation of weekly returns between EFA and QQQM is 0.66 over 3 years, 0.60 over 1 year and 0.70 over 5 years.
Is QQQM 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 QQQM overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 1.3% by weight over 6 common positions.
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Hubs: EFA correlations · QQQM correlations
