QQQ vs VEA: Correlation & Overlap
Invesco QQQ Trust (QQQ) and Vanguard FTSE Developed Markets ETF (VEA) show a strong relationship: their 3-year correlation of weekly returns is 0.69. Looking through to holdings, 1.6% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and VEA?
Over the past 3 years, QQQ and VEA moved with a correlation of 0.69, which is strong. Little has changed lately, as the 1-year reading of 0.68 lands near the 3-year figure. Over 5 years the correlation is 0.72, and the annualized covariance of weekly returns is 202.4 %².
Among the 4755 assets we track against QQQ, VEA ranks #72 by 3-year correlation. Twelve-month performance is nearly a tie, at +26.3% for QQQ and +28.5% for VEA. The rolling one-year correlation stayed in a tight band between 0.58 and 0.76 over the past three years, which points to a structural rather than episodic relationship.
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 VEA: side by side
| QQQ (Invesco QQQ Trust) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | +26.3% | +28.5% |
| 5-year return | +95.4% | +63.5% |
| Volatility (ann.) | 19.6% | 15.1% |
| Beta vs S&P 500 | 1.28 | 0.79 |
| Max drawdown (3Y) | -22.8% | -13.5% |
| Dividend yield | 0.44% | 2.56% |
| Expense ratio | 0.18% | 0.03% |
| Assets under management | $452.8B | $314.9B |
| Sector / category | ETF · US Growth & Tech | ETF · International |
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. VEA is a Foreign Large Blend fund from Vanguard: $314.9B under management, 3769 holdings, a 0.03% expense ratio, a 2.56% trailing dividend yield.
Portfolio overlap between QQQ and VEA
The two portfolios are largely distinct: 1.6% of the funds' weight sits in the same underlying holdings (10 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in QQQ | Weight in VEA |
|---|---|---|
| ASML | 0.71% | 2.00% |
| SHOP | 0.81% | 0.45% |
| ROP | 0.18% | 0.97% |
| FER | 0.19% | 0.09% |
| CCEP | 0.22% | 0.07% |
| TRI | 0.17% | 0.05% |
| ADP | 0.50% | 0.02% |
| WBD | 0.32% | 0.00% |
| STX | 0.84% | 0.00% |
| LIN | 1.01% | 0.00% |
Largest positions held only by QQQ: NVDA (8.15%), AAPL (7.39%), MSFT (5.93%), MU (4.69%), AMZN (4.50%). Only by VEA: 005930 (2.53%), 000660 (1.98%), HSBA (1.15%), SAN (0.94%), RY (0.92%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 10 common positions shown.
Year-by-year returns
| Year | QQQ | VEA |
|---|---|---|
| 2022 | -32.6% | -15.3% |
| 2023 | +54.9% | +17.9% |
| 2024 | +25.6% | +3.1% |
| 2025 | +20.8% | +35.2% |
| 2026 | +17.7% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and VEA good diversifiers for each other?
Somewhat, no more. With 0.69 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between QQQ and VEA?
The QQQ/VEA correlation stands at 0.69 on a 3-year window (1 year: 0.68, 5 years: 0.72), computed from weekly returns as of 2026-08-27.
Is VEA a good diversifier for QQQ?
Somewhat, no more. With 0.69 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do QQQ and VEA overlap?
1.6% by weight, across 10 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
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Hubs: QQQ correlations · VEA correlations
