FMN vs QQQ: Correlation
Federated Hermes Premier Municipal Income Fund (FMN) and Invesco QQQ Trust (QQQ) show a weak relationship: their 3-year correlation of weekly returns is 0.25.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FMN and QQQ?
Over the past 3 years, FMN and QQQ moved with a correlation of 0.25, which is weak. The past 12 months show a tighter link (0.53) than the 3-year average (0.25). Over 5 years the correlation is 0.32, and the annualized covariance of weekly returns is 54.2 %².
Among the 13 assets we track against FMN, QQQ sits near the bottom by co-movement, at rank #10. Their recent paths diverged sharply: over the last 12 months QQQ outperformed by 16.8 percentage points (+9.5% for FMN against +26.3% for QQQ). Risk is not evenly split, since QQQ carries 1.8 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.
FMN vs QQQ: side by side
| FMN (Federated Hermes Premier Municipal Income Fund) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +9.5% | +26.3% |
| 5-year return | -12.8% | +95.4% |
| Volatility (ann.) | 11.1% | 19.6% |
| Beta vs S&P 500 | 0.24 | 1.28 |
| Max drawdown (3Y) | -16.3% | -22.8% |
| Market cap | $0.1B | – |
| P/E (trailing) | 9.7 | – |
| Dividend yield | 4.57% | 0.44% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $452.8B |
| Sector / category | US Listed | ETF · US Growth & Tech |
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 | FMN | QQQ |
|---|---|---|
| 2022 | -26.7% | -32.6% |
| 2023 | +9.2% | +54.9% |
| 2024 | +3.2% | +25.6% |
| 2025 | +6.8% | +20.8% |
| 2026 | +2.9% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FMN and QQQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.25 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between FMN and QQQ?
As of 2026-08-27, the correlation of weekly returns between FMN and QQQ is 0.25 over 3 years, 0.53 over 1 year and 0.32 over 5 years.
Is QQQ a good diversifier for FMN?
Yes, to a useful degree: a correlation of 0.25 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.25 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
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Related comparisons
Hubs: FMN correlations · QQQ correlations
