IIM vs QQQ: Correlation
How closely do Invesco Value Municipal Income Trust (IIM) and Invesco QQQ Trust (QQQ) trade together? Their weekly returns over three years give a correlation of 0.29, which is weak.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IIM and QQQ?
Across a 3-year window, the weekly returns of IIM and QQQ correlate at 0.29, weak. Lately the two have moved closer together, with the 1-year correlation at 0.43 versus 0.29 over 3 years. Stretching to 5 years gives 0.36, with an annualized covariance of 72.4 %².
Out of 17 assets tracked against IIM, QQQ lands near the bottom at #14. The trailing year gives QQQ the advantage: +16.5% versus +26.3%, a 9.8-point spread. One caveat on sizing: QQQ is 1.5 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
IIM vs QQQ: side by side
| IIM (Invesco Value Municipal Income Trust) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +16.5% | +26.3% |
| 5-year return | +0.6% | +95.4% |
| Volatility (ann.) | 12.7% | 19.6% |
| Beta vs S&P 500 | 0.31 | 1.28 |
| Max drawdown (3Y) | -13.2% | -22.8% |
| Market cap | $0.6B | – |
| P/E (trailing) | 31.6 | – |
| Dividend yield | 7.32% | 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 | IIM | QQQ |
|---|---|---|
| 2022 | -25.4% | -32.6% |
| 2023 | +2.1% | +54.9% |
| 2024 | +8.1% | +25.6% |
| 2025 | +11.9% | +20.8% |
| 2026 | +7.6% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IIM and QQQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.29 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between IIM and QQQ?
As of 2026-08-27, the correlation of weekly returns between IIM and QQQ is 0.29 over 3 years, 0.43 over 1 year and 0.36 over 5 years.
Is QQQ a good diversifier for IIM?
Yes, to a useful degree: a correlation of 0.29 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.29 mean?
On the −1 to +1 scale, 0.29 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iim-vs-qqq.json
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Related comparisons
Hubs: IIM correlations · QQQ correlations
