IWM vs QQQM: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and Invesco Nasdaq 100 ETF (QQQM) carry a correlation of 0.67, a strong link. Looking through to holdings, 0% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and QQQM?
Across a 3-year window, the weekly returns of IWM and QQQM correlate at 0.67, strong. The relationship has been stable: the 1-year correlation (0.68) sits close to the 3-year figure. Stretching to 5 years gives 0.74, with an annualized covariance of 258.8 %².
Among the 320 assets we track against IWM, QQQM ranks #59 by 3-year correlation. Their 12-month results are close: +28.4% for IWM against +26.4% for QQQM. The rolling one-year correlation moved between 0.43 and 0.83 over the past three years, a moderate range.
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.
IWM vs QQQM: side by side
| IWM (iShares Russell 2000 ETF) | QQQM (Invesco Nasdaq 100 ETF) | |
|---|---|---|
| 1-year return | +28.4% | +26.4% |
| 5-year return | +41.5% | +96.1% |
| Volatility (ann.) | 19.8% | 19.5% |
| Beta vs S&P 500 | 1.06 | 1.28 |
| Max drawdown (3Y) | -27.5% | -22.7% |
| Dividend yield | 0.91% | 0.46% |
| Expense ratio | 0.19% | 0.15% |
| Assets under management | $80.1B | $97.1B |
| Sector / category | ETF · US Small & Mid Cap | ETF · US Growth & Tech |
IWM is a Small Blend fund from iShares: $80.1B under management, 1757 holdings, a 0.19% expense ratio, a 0.91% 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 IWM and QQQM
The two portfolios are largely distinct: 0% of the funds' weight sits in the same underlying holdings (0 common positions). Correlation tells you they move together; overlap tells you why.
Largest positions held only by IWM: MOGA (0.35%), UMBF (0.34%), CYTK (0.33%), GKOS (0.33%), EAT (0.33%). 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.
Year-by-year returns
| Year | IWM | QQQM |
|---|---|---|
| 2022 | -20.5% | -32.5% |
| 2023 | +16.8% | +55.0% |
| 2024 | +11.4% | +25.7% |
| 2025 | +12.7% | +20.9% |
| 2026 | +22.3% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and QQQM good diversifiers for each other?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IWM and QQQM?
As of 2026-08-27, the correlation of weekly returns between IWM and QQQM is 0.67 over 3 years, 0.68 over 1 year and 0.74 over 5 years.
Is QQQM a good diversifier for IWM?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do IWM and QQQM overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iwm-vs-qqqm.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iwm-vs-qqqm/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IWM correlations · QQQM correlations
