QQQ vs TEI: Correlation
Invesco QQQ Trust (QQQ) and Templeton Emerging Markets Income Fund, Inc. (TEI) show a moderate relationship: their 3-year correlation of weekly returns is 0.45.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and TEI?
Across a 3-year window, the weekly returns of QQQ and TEI correlate at 0.45, moderate. The relationship has been stable: the 1-year correlation (0.49) sits close to the 3-year figure. Stretching to 5 years gives 0.41, with an annualized covariance of 138.0 %².
Among the 4755 assets we track against QQQ, TEI ranks #422 by 3-year correlation. Twelve-month performance is nearly a tie, at +26.3% for QQQ and +27.3% for TEI.
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 TEI: side by side
| QQQ (Invesco QQQ Trust) | TEI (Templeton Emerging Markets Income Fund, Inc.) | |
|---|---|---|
| 1-year return | +26.3% | +27.3% |
| 5-year return | +95.4% | +54.4% |
| Volatility (ann.) | 19.6% | 15.8% |
| Beta vs S&P 500 | 1.28 | 0.58 |
| Max drawdown (3Y) | -22.8% | -14.5% |
| Market cap | – | $0.3B |
| P/E (trailing) | – | 3.4 |
| Dividend yield | 0.44% | 8.36% |
| Expense ratio | 0.18% | – |
| Assets under management | $452.8B | – |
| Sector / category | ETF · US Growth & Tech | US Listed |
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 | QQQ | TEI |
|---|---|---|
| 2022 | -32.6% | -15.5% |
| 2023 | +54.9% | +3.8% |
| 2024 | +25.6% | +11.9% |
| 2025 | +20.8% | +45.6% |
| 2026 | +17.7% | +12.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and TEI good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.45 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between QQQ and TEI?
As of 2026-08-27, the correlation of weekly returns between QQQ and TEI is 0.45 over 3 years, 0.49 over 1 year and 0.41 over 5 years.
Is TEI a good diversifier for QQQ?
Yes, to a useful degree: a correlation of 0.45 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.45 mean?
On the −1 to +1 scale, 0.45 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: QQQ correlations · TEI correlations
