QQQ vs TSM: Correlation
Invesco QQQ Trust (QQQ) and Taiwan Semiconductor Manufacturing Company Ltd. (TSM) show a strong relationship: their 3-year correlation of weekly returns is 0.72.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and TSM?
Over the past 3 years, QQQ and TSM moved with a correlation of 0.72, which is strong. The link has loosened recently: the 1-year correlation (0.57) runs below the 3-year figure (0.72). Over 5 years the correlation is 0.66, and the annualized covariance of weekly returns is 489.8 %².
Within QQQ's tracked universe of 4755 assets, TSM comes in at #55 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months TSM outperformed by 54.2 percentage points (+26.3% for QQQ against +80.5% for TSM). Note the risk asymmetry: TSM runs 1.8 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 TSM: side by side
| QQQ (Invesco QQQ Trust) | TSM (Taiwan Semiconductor Manufacturing Company Ltd.) | |
|---|---|---|
| 1-year return | +26.3% | +80.5% |
| 5-year return | +95.4% | +289.6% |
| Volatility (ann.) | 19.6% | 34.9% |
| Beta vs S&P 500 | 1.28 | 1.59 |
| Max drawdown (3Y) | -22.8% | -36.8% |
| Market cap | – | $2,216.2B |
| P/E (trailing) | – | 31.1 |
| Dividend yield | 0.44% | 6.22% |
| 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 | TSM |
|---|---|---|
| 2022 | -32.6% | -36.7% |
| 2023 | +54.9% | +42.3% |
| 2024 | +25.6% | +92.6% |
| 2025 | +20.8% | +55.9% |
| 2026 | +17.7% | +41.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and TSM good diversifiers for each other?
To a limited degree. At 0.72 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between QQQ and TSM?
The QQQ/TSM correlation stands at 0.72 on a 3-year window (1 year: 0.57, 5 years: 0.66), computed from weekly returns as of 2026-08-27.
Is TSM a good diversifier for QQQ?
To a limited degree. At 0.72 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.72 mean?
A reading of 0.72 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qqq-vs-tsm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/qqq-vs-tsm/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: QQQ correlations · TSM correlations
