QQQ vs TDF: Correlation
Measured on weekly returns over the past three years, Invesco QQQ Trust (QQQ) and Templeton Dragon Fund, Inc. (TDF) carry a correlation of 0.37, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and TDF?
On 3 years of weekly data the QQQ/TDF correlation comes out at 0.37, moderate. Lately the two have moved closer together, with the 1-year correlation at 0.58 versus 0.37 over 3 years. The 5-year figure is 0.34, and annualized covariance runs at 161.4 %².
Among the 4755 assets we track against QQQ, TDF ranks #877 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months QQQ outperformed by 22.9 percentage points (+26.3% for QQQ against +3.4% for TDF).
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 TDF: side by side
| QQQ (Invesco QQQ Trust) | TDF (Templeton Dragon Fund, Inc.) | |
|---|---|---|
| 1-year return | +26.3% | +3.4% |
| 5-year return | +95.4% | -29.3% |
| Volatility (ann.) | 19.6% | 22.2% |
| Beta vs S&P 500 | 1.28 | 0.64 |
| Max drawdown (3Y) | -22.8% | -22.2% |
| Market cap | – | $0.3B |
| P/E (trailing) | – | 3.6 |
| Dividend yield | 0.44% | 3.68% |
| 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 | TDF |
|---|---|---|
| 2022 | -32.6% | -32.9% |
| 2023 | +54.9% | -20.1% |
| 2024 | +25.6% | +5.5% |
| 2025 | +20.8% | +37.7% |
| 2026 | +17.7% | -1.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and TDF good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.37 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between QQQ and TDF?
Using weekly returns as of 2026-08-27: 0.37 over 3 years, with 0.58 over the last year and 0.34 over 5 years.
Is TDF a good diversifier for QQQ?
Yes, to a useful degree: a correlation of 0.37 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.37 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.
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Related comparisons
Hubs: QQQ correlations · TDF correlations
