IEFA vs QQQM: Correlation & Overlap
How closely do iShares Core MSCI EAFE ETF (IEFA) and Invesco Nasdaq 100 ETF (QQQM) trade together? Their weekly returns over three years give a correlation of 0.66, which is strong. By holdings, the two funds overlap 1.3% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEFA and QQQM?
On 3 years of weekly data the IEFA/QQQM correlation comes out at 0.66, strong. Little has changed lately, as the 1-year reading of 0.61 lands near the 3-year figure. The 5-year figure is 0.70, and annualized covariance runs at 191.8 %².
By 3-year correlation, QQQM places #46 of the 111 assets tracked against IEFA. Their 12-month results are close: +21.8% for IEFA against +26.4% for QQQM. The link looks structural: the rolling one-year correlation barely moved, holding between 0.57 and 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.
IEFA vs QQQM: side by side
| IEFA (iShares Core MSCI EAFE ETF) | QQQM (Invesco Nasdaq 100 ETF) | |
|---|---|---|
| 1-year return | +21.8% | +26.4% |
| 5-year return | +54.5% | +96.1% |
| Volatility (ann.) | 15.0% | 19.5% |
| Beta vs S&P 500 | 0.77 | 1.28 |
| Max drawdown (3Y) | -13.8% | -22.7% |
| Dividend yield | 3.35% | 0.46% |
| Expense ratio | 0.07% | 0.15% |
| Assets under management | $190.1B | $97.1B |
| Sector / category | ETF · International | ETF · US Growth & Tech |
IEFA, iShares's Foreign Large Blend fund, carries $190.1B under management, 1620 holdings, a 0.07% expense ratio, a 3.35% 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 IEFA and QQQM
The two portfolios are largely distinct, with 7 holdings in common adding up to 1.3% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in IEFA | Weight in QQQM |
|---|---|---|
| ASML | 2.57% | 0.71% |
| ROP | 1.22% | 0.18% |
| NBIS | 0.16% | 0.21% |
| FER | 0.11% | 0.19% |
| CCEP | 0.09% | 0.22% |
| ADP | 0.02% | 0.50% |
| TRI | 0.01% | 0.17% |
Largest positions held only by IEFA: HSBA (1.35%), SAN (1.17%), NOVN (1.10%), NESN (0.97%), SHEL (0.97%). 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 7 common positions shown.
Year-by-year returns
| Year | IEFA | QQQM |
|---|---|---|
| 2022 | -15.2% | -32.5% |
| 2023 | +18.0% | +55.0% |
| 2024 | +3.3% | +25.7% |
| 2025 | +32.1% | +20.9% |
| 2026 | +14.5% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEFA 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 IEFA and QQQM?
Using weekly returns as of 2026-08-27: 0.66 over 3 years, with 0.61 over the last year and 0.70 over 5 years.
Is QQQM a good diversifier for IEFA?
Somewhat, no more. With 0.66 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do IEFA and QQQM overlap?
1.3% by weight, across 7 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
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Related comparisons
Hubs: IEFA correlations · QQQM correlations
