QQQ vs SMHB: Correlation
Measured on weekly returns over the past three years, Invesco QQQ Trust (QQQ) and ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN (SMHB) carry a correlation of 0.38, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and SMHB?
Across a 3-year window, the weekly returns of QQQ and SMHB correlate at 0.38, moderate. Recent behaviour matches the longer record: 0.36 over 1 year against 0.38 over 3. Stretching to 5 years gives 0.51, with an annualized covariance of 288.1 %².
By 3-year correlation, SMHB places #796 of the 4755 assets tracked against QQQ. The last year tells two different stories: QQQ led by 18.9 percentage points, +26.3% for QQQ against +7.4% for SMHB. Note the risk asymmetry: SMHB runs 2.0 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.
QQQ vs SMHB: side by side
| QQQ (Invesco QQQ Trust) | SMHB (ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN) | |
|---|---|---|
| 1-year return | +26.3% | +7.4% |
| 5-year return | +95.4% | -13.5% |
| Volatility (ann.) | 19.6% | 39.3% |
| Beta vs S&P 500 | 1.28 | 1.42 |
| Max drawdown (3Y) | -22.8% | -45.0% |
| Dividend yield | 0.44% | – |
| Expense ratio | 0.18% | – |
| Assets under management | $452.8B | – |
| Sector / category | ETF · US Growth & Tech | US Listed |
QQQ, Invesco's Large Growth fund, carries $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield.
Year-by-year returns
| Year | QQQ | SMHB |
|---|---|---|
| 2022 | -32.6% | -36.0% |
| 2023 | +54.9% | +36.0% |
| 2024 | +25.6% | -15.8% |
| 2025 | +20.8% | -7.7% |
| 2026 | +17.7% | +22.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and SMHB good diversifiers for each other?
Reasonably. At 0.38, QQQ and SMHB keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between QQQ and SMHB?
The QQQ/SMHB correlation stands at 0.38 on a 3-year window (1 year: 0.36, 5 years: 0.51), computed from weekly returns as of 2026-08-27.
Is SMHB a good diversifier for QQQ?
Reasonably. At 0.38, QQQ and SMHB 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
$ curl https://www.pairbook.io/api/v1/pairs/qqq-vs-smhb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/qqq-vs-smhb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: QQQ correlations · SMHB correlations
