QQQ vs SPY: Correlation & Overlap
How closely do Invesco QQQ Trust (QQQ) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.95, which is very strong. The two funds also share 53.4% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and SPY?
Over the past 3 years, QQQ and SPY moved with a correlation of 0.95, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.94 over 1 year against 0.95 over 3. Over 5 years the correlation is 0.95, and the annualized covariance of weekly returns is 268.1 %².
By 3-year correlation, SPY places #6 of the 4755 assets tracked against QQQ. The trailing year gives QQQ the advantage: +26.3% versus +20.6%, a 5.7-point spread. Stability stands out here, with the rolling one-year correlation confined to 0.89 through 0.97.
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 SPY: side by side
| QQQ (Invesco QQQ Trust) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +26.3% | +20.6% |
| 5-year return | +95.4% | +82.4% |
| Volatility (ann.) | 19.6% | 14.5% |
| Beta vs S&P 500 | 1.28 | 1.00 |
| Max drawdown (3Y) | -22.8% | -18.8% |
| Dividend yield | 0.44% | 1.01% |
| Expense ratio | 0.18% | 0.09% |
| Assets under management | $452.8B | $795.3B |
| Sector / category | ETF · US Growth & Tech | ETF · US Large Cap |
On the fund side, QQQ sits in the Large Growth category at Invesco, with $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield. SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Portfolio overlap between QQQ and SPY
The two portfolios overlap heavily. Weighing the shared positions, 53.4% of the two funds is identical, spread across 87 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in QQQ | Weight in SPY |
|---|---|---|
| NVDA | 8.15% | 7.68% |
| AAPL | 7.39% | 6.96% |
| MSFT | 5.93% | 5.58% |
| AMZN | 4.50% | 3.85% |
| GOOGL | 3.20% | 3.03% |
| AVGO | 2.71% | 2.55% |
| GOOG | 2.97% | 2.42% |
| META | 2.74% | 1.91% |
| MU | 4.69% | 1.60% |
| TSLA | 2.77% | 1.47% |
| AMD | 3.48% | 1.19% |
| WMT | 2.26% | 0.69% |
| CSCO | 1.96% | 0.67% |
| INTC | 1.97% | 0.66% |
| COST | 1.88% | 0.64% |
Largest positions held only by QQQ: SPCX (1.19%), SHOP (0.81%), ASML (0.71%), ARM (0.47%), MELI (0.44%). Only by SPY: JPM (1.44%), LLY (1.42%), BRK.B (1.40%), XOM (0.99%), JNJ (0.98%).
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 | SPY |
|---|---|---|
| 2022 | -32.6% | -18.2% |
| 2023 | +54.9% | +26.2% |
| 2024 | +25.6% | +24.9% |
| 2025 | +20.8% | +17.7% |
| 2026 | +17.7% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and SPY good diversifiers for each other?
No. With a correlation of 0.95, QQQ and SPY move nearly in lockstep, so holding both adds very little diversification. They also hold much of the same portfolio (53.4% overlap), so the exposure is doubly redundant.
FAQ
What is the correlation between QQQ and SPY?
As of 2026-08-27, the correlation of weekly returns between QQQ and SPY is 0.95 over 3 years, 0.94 over 1 year and 0.95 over 5 years.
Is SPY a good diversifier for QQQ?
No. With a correlation of 0.95, QQQ and SPY move nearly in lockstep, so holding both adds very little diversification. They also hold much of the same portfolio (53.4% overlap), so the exposure is doubly redundant.
How much do QQQ and SPY overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 53.4% by weight over 87 common positions.
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