PFN vs QQQ: Correlation
How closely do PIMCO Income Strategy Fund II (PFN) and Invesco QQQ Trust (QQQ) trade together? Their weekly returns over three years give a correlation of 0.38, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PFN and QQQ?
Across a 3-year window, the weekly returns of PFN and QQQ correlate at 0.38, moderate. Recent behaviour matches the longer record: 0.35 over 1 year against 0.38 over 3. Stretching to 5 years gives 0.44, with an annualized covariance of 90.3 %².
Among the 18 assets we track against PFN, QQQ ranks #12 by 3-year correlation. The last year tells two different stories: QQQ led by 22.2 percentage points, +4.1% for PFN against +26.3% for QQQ. Risk is not evenly split, since QQQ carries 1.6 times the volatility of the other side.
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.
PFN vs QQQ: side by side
| PFN (PIMCO Income Strategy Fund II) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +4.1% | +26.3% |
| 5-year return | +9.3% | +95.4% |
| Volatility (ann.) | 12.2% | 19.6% |
| Beta vs S&P 500 | 0.40 | 1.28 |
| Max drawdown (3Y) | -11.1% | -22.8% |
| Market cap | $0.7B | – |
| P/E (trailing) | 13.4 | – |
| Dividend yield | 12.40% | 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 | PFN | QQQ |
|---|---|---|
| 2022 | -17.6% | -32.6% |
| 2023 | +15.5% | +54.9% |
| 2024 | +15.8% | +25.6% |
| 2025 | +13.1% | +20.8% |
| 2026 | +1.0% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PFN and QQQ good diversifiers for each other?
Reasonably. At 0.38, PFN and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between PFN and QQQ?
As of 2026-08-27, the correlation of weekly returns between PFN and QQQ is 0.38 over 3 years, 0.35 over 1 year and 0.44 over 5 years.
Is QQQ a good diversifier for PFN?
Reasonably. At 0.38, PFN and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.38 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
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Related comparisons
Hubs: PFN correlations · QQQ correlations
