MSCI vs QQQ: Correlation
MSCI (MSCI) and Invesco QQQ Trust (QQQ) show a moderate relationship: their 3-year correlation of weekly returns is 0.42.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MSCI and QQQ?
Over the past 3 years, MSCI and QQQ moved with a correlation of 0.42, which is moderate. Recent behaviour matches the longer record: 0.33 over 1 year against 0.42 over 3. Over 5 years the correlation is 0.59, and the annualized covariance of weekly returns is 208.3 %².
By 3-year correlation, QQQ places #17 of the 27 assets tracked against MSCI. The last year tells two different stories: QQQ led by 25.0 percentage points, +1.3% for MSCI against +26.3% for QQQ. The rolling one-year correlation moved between 0.29 and 0.70 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.
MSCI vs QQQ: side by side
| MSCI (MSCI) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +1.3% | +26.3% |
| 5-year return | -5.6% | +95.4% |
| Volatility (ann.) | 25.4% | 19.6% |
| Beta vs S&P 500 | 0.85 | 1.28 |
| Max drawdown (3Y) | -26.0% | -22.8% |
| Market cap | $41.4B | – |
| P/E (trailing) | 30.9 | – |
| Dividend yield | 1.36% | 0.44% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $452.8B |
| Sector / category | Financials | 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 | MSCI | QQQ |
|---|---|---|
| 2022 | -23.3% | -32.6% |
| 2023 | +22.9% | +54.9% |
| 2024 | +7.3% | +25.6% |
| 2025 | -3.2% | +20.8% |
| 2026 | +0.3% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MSCI and QQQ good diversifiers for each other?
Reasonably. At 0.42, MSCI and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between MSCI and QQQ?
As of 2026-08-27, the correlation of weekly returns between MSCI and QQQ is 0.42 over 3 years, 0.33 over 1 year and 0.59 over 5 years.
Is QQQ a good diversifier for MSCI?
Reasonably. At 0.42, MSCI and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.42 mean?
On the −1 to +1 scale, 0.42 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
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Related comparisons
Hubs: MSCI correlations · QQQ correlations
