QQQ vs VNQ: Correlation & Overlap
How closely do Invesco QQQ Trust (QQQ) and Vanguard Real Estate ETF (VNQ) trade together? Their weekly returns over three years give a correlation of 0.35, which is moderate. The two funds also share 0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and VNQ?
Over the past 3 years, QQQ and VNQ moved with a correlation of 0.35, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.12 versus 0.35 over 3 years. Over 5 years the correlation is 0.55, and the annualized covariance of weekly returns is 112.6 %².
By 3-year correlation, VNQ places #1056 of the 4755 assets tracked against QQQ. The last year tells two different stories: QQQ led by 16.0 percentage points, +26.3% for QQQ against +10.3% for VNQ. This link changes with the market regime, having swung between 0.10 and 0.74 on a rolling one-year basis.
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 VNQ: side by side
| QQQ (Invesco QQQ Trust) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +26.3% | +10.3% |
| 5-year return | +95.4% | +9.5% |
| Volatility (ann.) | 19.6% | 16.6% |
| Beta vs S&P 500 | 1.28 | 0.59 |
| Max drawdown (3Y) | -22.8% | -17.5% |
| Dividend yield | 0.44% | 3.51% |
| Expense ratio | 0.18% | 0.13% |
| Assets under management | $452.8B | $73.1B |
| Sector / category | ETF · US Growth & Tech | ETF · Real Estate |
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. VNQ is a Real Estate fund from Vanguard: $73.1B under management, 140 holdings, a 0.13% expense ratio, a 3.51% trailing dividend yield.
Portfolio overlap between QQQ and VNQ
The two portfolios are largely distinct: 0% of the funds' weight sits in the same underlying holdings (0 common positions). Correlation tells you they move together; overlap tells you why.
Largest positions held only by QQQ: NVDA (8.15%), AAPL (7.39%), MSFT (5.93%), MU (4.69%), AMZN (4.50%). Only by VNQ: VRTPX (14.54%), WELL (8.54%), PLD (7.04%), EQIX (5.25%), AMT (4.22%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | QQQ | VNQ |
|---|---|---|
| 2022 | -32.6% | -26.3% |
| 2023 | +54.9% | +11.9% |
| 2024 | +25.6% | +4.8% |
| 2025 | +20.8% | +3.2% |
| 2026 | +17.7% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and VNQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.35 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between QQQ and VNQ?
As of 2026-08-27, the correlation of weekly returns between QQQ and VNQ is 0.35 over 3 years, 0.12 over 1 year and 0.55 over 5 years.
Is VNQ a good diversifier for QQQ?
Yes, to a useful degree: a correlation of 0.35 leaves real independence between the two, which historically damped combined volatility.
How much do QQQ and VNQ overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qqq-vs-vnq.json
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Related comparisons
Hubs: QQQ correlations · VNQ correlations
