LQD vs QQQ: Correlation
iShares iBoxx Investment Grade Corporate Bond ETF (LQD) 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 LQD and QQQ?
On 3 years of weekly data the LQD/QQQ correlation comes out at 0.25, weak. Lately the two have moved closer together, with the 1-year correlation at 0.38 versus 0.25 over 3 years. The 5-year figure is 0.38, and annualized covariance runs at 35.5 %².
Within LQD's tracked universe of 33 assets, QQQ comes in at #23 by 3-year correlation. The last year tells two different stories: QQQ led by 24.8 percentage points, +1.5% for LQD against +26.3% for QQQ. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.12 to 0.55. Note the risk asymmetry: QQQ runs 2.7 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.
LQD vs QQQ: side by side
| LQD (iShares iBoxx Investment Grade Corporate Bond ETF) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +1.5% | +26.3% |
| 5-year return | -4.1% | +95.4% |
| Volatility (ann.) | 7.3% | 19.6% |
| Beta vs S&P 500 | 0.15 | 1.28 |
| Max drawdown (3Y) | -6.7% | -22.8% |
| Dividend yield | 4.66% | 0.44% |
| Expense ratio | 0.14% | 0.18% |
| Assets under management | $33.0B | $452.8B |
| Sector / category | ETF · Bonds | ETF · US Growth & Tech |
LQD, iShares's Corporate Bond fund, carries $33.0B under management, a 0.14% expense ratio, a 4.66% 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 | LQD | QQQ |
|---|---|---|
| 2022 | -17.9% | -32.6% |
| 2023 | +9.4% | +54.9% |
| 2024 | +0.9% | +25.6% |
| 2025 | +7.9% | +20.8% |
| 2026 | -0.5% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LQD and QQQ good diversifiers for each other?
A fair diversifier. At 0.25, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between LQD and QQQ?
The LQD/QQQ correlation stands at 0.25 on a 3-year window (1 year: 0.38, 5 years: 0.38), computed from weekly returns as of 2026-08-27.
Is QQQ a good diversifier for LQD?
A fair diversifier. At 0.25, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.25 mean?
On the −1 to +1 scale, 0.25 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/lqd-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/lqd-vs-qqq/)
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Related comparisons
Hubs: LQD correlations · QQQ correlations
