MSDL vs QQQ: Correlation
How closely do Morgan Stanley Direct Lending Fund (MSDL) and Invesco QQQ Trust (QQQ) trade together? Their weekly returns over three years give a correlation of 0.35, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MSDL and QQQ?
On 3 years of weekly data the MSDL/QQQ correlation comes out at 0.35, moderate. The past 12 months show a tighter link (0.51) than the 3-year average (0.35). The 5-year figure is n/a, and annualized covariance runs at 146.7 %².
Within MSDL's tracked universe of 13 assets, QQQ comes in at #7 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months QQQ outperformed by 29.0 percentage points (-2.7% for MSDL against +26.3% for QQQ).
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.
MSDL vs QQQ: side by side
| MSDL (Morgan Stanley Direct Lending Fund) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | -2.7% | +26.3% |
| 5-year return | n/a | +95.4% |
| Volatility (ann.) | 21.2% | 19.6% |
| Beta vs S&P 500 | 0.57 | 1.28 |
| Max drawdown (3Y) | -29.7% | -22.8% |
| Market cap | $1.3B | – |
| P/E (trailing) | 22.2 | – |
| Dividend yield | 12.45% | 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 | MSDL | QQQ |
|---|---|---|
| 2022 | – | -32.6% |
| 2023 | – | +54.9% |
| 2024 | – | +25.6% |
| 2025 | -10.9% | +20.8% |
| 2026 | -1.1% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MSDL and QQQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.35 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between MSDL and QQQ?
The MSDL/QQQ correlation stands at 0.35 on a 3-year window (1 year: 0.51, 5 years: n/a), computed from weekly returns as of 2026-08-27.
Is QQQ a good diversifier for MSDL?
Yes, to a useful degree: a correlation of 0.35 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.35 mean?
On the −1 to +1 scale, 0.35 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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[](https://www.pairbook.io/pair/msdl-vs-qqq/)
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Related comparisons
Hubs: MSDL correlations · QQQ correlations
