HYG vs QQQ: Correlation
Measured on weekly returns over the past three years, iShares iBoxx High Yield Corporate Bond ETF (HYG) and Invesco QQQ Trust (QQQ) carry a correlation of 0.60, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HYG and QQQ?
Across a 3-year window, the weekly returns of HYG and QQQ correlate at 0.60, strong. Recent behaviour matches the longer record: 0.65 over 1 year against 0.60 over 3. Stretching to 5 years gives 0.67, with an annualized covariance of 54.9 %².
By 3-year correlation, QQQ places #27 of the 46 assets tracked against HYG. The last year tells two different stories: QQQ led by 21.7 percentage points, +4.6% for HYG against +26.3% for QQQ. On a rolling one-year basis the correlation drifted between 0.46 and 0.74, a moderate band. Note the risk asymmetry: QQQ runs 4.2 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
HYG vs QQQ: side by side
| HYG (iShares iBoxx High Yield Corporate Bond ETF) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +4.6% | +26.3% |
| 5-year return | +19.9% | +95.4% |
| Volatility (ann.) | 4.7% | 19.6% |
| Beta vs S&P 500 | 0.22 | 1.28 |
| Max drawdown (3Y) | -4.6% | -22.8% |
| Dividend yield | 5.94% | 0.44% |
| Expense ratio | 0.49% | 0.18% |
| Assets under management | $17.1B | $452.8B |
| Sector / category | ETF · Bonds | ETF · US Growth & Tech |
On the fund side, HYG sits in the High Yield Bond category at iShares, with $17.1B under management, a 0.49% expense ratio, a 5.94% 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 | HYG | QQQ |
|---|---|---|
| 2022 | -11.0% | -32.6% |
| 2023 | +11.5% | +54.9% |
| 2024 | +8.0% | +25.6% |
| 2025 | +8.6% | +20.8% |
| 2026 | +2.5% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HYG and QQQ good diversifiers for each other?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between HYG and QQQ?
As of 2026-08-27, the correlation of weekly returns between HYG and QQQ is 0.60 over 3 years, 0.65 over 1 year and 0.67 over 5 years.
Is QQQ a good diversifier for HYG?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.60 mean?
On the −1 to +1 scale, 0.60 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: HYG correlations · QQQ correlations
