QQQ vs QUAL: Correlation & Overlap
Invesco QQQ Trust (QQQ) and iShares MSCI USA Quality Factor ETF (QUAL) show a very strong relationship: their 3-year correlation of weekly returns is 0.90. By holdings, the two funds overlap 40.7% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and QUAL?
Across a 3-year window, the weekly returns of QQQ and QUAL correlate at 0.90, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.81 lands near the 3-year figure. Stretching to 5 years gives 0.93, with an annualized covariance of 246.8 %².
Within QQQ's tracked universe of 4755 assets, QUAL comes in at #13 by 3-year correlation. Over the last 12 months QQQ came out ahead by 6.6 percentage points (+26.3% against +19.7%). Stability stands out here, with the rolling one-year correlation confined to 0.80 through 0.95.
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.
QQQ vs QUAL: side by side
| QQQ (Invesco QQQ Trust) | QUAL (iShares MSCI USA Quality Factor ETF) | |
|---|---|---|
| 1-year return | +26.3% | +19.7% |
| 5-year return | +95.4% | +68.0% |
| Volatility (ann.) | 19.6% | 14.0% |
| Beta vs S&P 500 | 1.28 | 0.93 |
| Max drawdown (3Y) | -22.8% | -18.0% |
| Dividend yield | 0.44% | 0.86% |
| Expense ratio | 0.18% | 0.15% |
| Assets under management | $452.8B | $46.5B |
| Sector / category | ETF · US Growth & Tech | ETF · US Style |
QQQ, Invesco's Large Growth fund, carries $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield. QUAL, iShares's Large Blend fund, carries $46.5B under management, 123 holdings, a 0.15% expense ratio, a 0.86% trailing dividend yield.
Portfolio overlap between QQQ and QUAL
The two portfolios overlap heavily: 40.7% of the funds' weight sits in the same underlying holdings (34 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in QQQ | Weight in QUAL |
|---|---|---|
| AAPL | 7.39% | 6.62% |
| NVDA | 8.15% | 6.00% |
| MSFT | 5.93% | 7.51% |
| META | 2.74% | 3.75% |
| GOOGL | 3.20% | 1.93% |
| LRCX | 1.73% | 3.66% |
| AMAT | 1.69% | 2.88% |
| NFLX | 1.52% | 1.91% |
| GOOG | 2.97% | 1.52% |
| COST | 1.88% | 1.09% |
| KLAC | 1.07% | 2.44% |
| LIN | 1.01% | 1.02% |
| WMT | 2.26% | 0.91% |
| GILD | 0.82% | 0.69% |
| FTNT | 0.51% | 1.10% |
Largest positions held only by QQQ: MU (4.69%), AMZN (4.50%), AMD (3.48%), TSLA (2.77%), AVGO (2.71%). Only by QUAL: LLY (3.72%), TJX (3.40%), V (3.26%), MA (2.34%), XOM (2.18%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | QQQ | QUAL |
|---|---|---|
| 2022 | -32.6% | -20.5% |
| 2023 | +54.9% | +30.9% |
| 2024 | +25.6% | +22.3% |
| 2025 | +20.8% | +12.7% |
| 2026 | +17.7% | +13.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and QUAL good diversifiers for each other?
Not really. At 0.90, the two trade almost as one position, and owning both buys little extra protection. On top of that, 40.7% of their holdings are the same, making the doubling-up even more literal.
FAQ
What is the correlation between QQQ and QUAL?
Using weekly returns as of 2026-08-27: 0.90 over 3 years, with 0.81 over the last year and 0.93 over 5 years.
Is QUAL a good diversifier for QQQ?
Not really. At 0.90, the two trade almost as one position, and owning both buys little extra protection. On top of that, 40.7% of their holdings are the same, making the doubling-up even more literal.
How much do QQQ and QUAL overlap?
The two funds share 34 holdings amounting to 40.7% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qqq-vs-qual.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/qqq-vs-qual/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: QQQ correlations · QUAL correlations
