QQQ vs VUG: Correlation & Overlap
Measured on weekly returns over the past three years, Invesco QQQ Trust (QQQ) and Vanguard Growth ETF (VUG) carry a correlation of 0.98, a very strong link. Looking through to holdings, 58.8% 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 VUG?
On 3 years of weekly data the QQQ/VUG correlation comes out at 0.98, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.94 over 1 year against 0.98 over 3. The 5-year figure is 0.98, and annualized covariance runs at 369.9 %².
In QQQ's tracked universe of 4755 assets, VUG sits right near the top at #3. On 12-month performance QQQ holds a 10.1-point edge, +26.3% against +16.2%. The link looks structural: the rolling one-year correlation barely moved, holding between 0.94 and 0.99.
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 VUG: side by side
| QQQ (Invesco QQQ Trust) | VUG (Vanguard Growth ETF) | |
|---|---|---|
| 1-year return | +26.3% | +16.2% |
| 5-year return | +95.4% | +78.4% |
| Volatility (ann.) | 19.6% | 19.4% |
| Beta vs S&P 500 | 1.28 | 1.28 |
| Max drawdown (3Y) | -22.8% | -22.8% |
| Dividend yield | 0.44% | 0.40% |
| Expense ratio | 0.18% | 0.03% |
| Assets under management | $452.8B | $372.0B |
| Sector / category | ETF · US Growth & Tech | ETF · US Style |
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. VUG, Vanguard's Large Growth fund, carries $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% trailing dividend yield.
Portfolio overlap between QQQ and VUG
The two portfolios overlap heavily: 58.8% of the funds' weight sits in the same underlying holdings (57 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in QQQ | Weight in VUG |
|---|---|---|
| NVDA | 8.15% | 12.84% |
| AAPL | 7.39% | 12.63% |
| MSFT | 5.93% | 9.61% |
| AMZN | 4.50% | 5.16% |
| GOOGL | 3.20% | 5.81% |
| GOOG | 2.97% | 4.64% |
| META | 2.74% | 3.41% |
| AVGO | 2.71% | 4.47% |
| TSLA | 2.77% | 2.45% |
| AMD | 3.48% | 2.17% |
| COST | 1.88% | 1.19% |
| AMAT | 1.69% | 1.14% |
| LRCX | 1.73% | 1.03% |
| NFLX | 1.52% | 0.86% |
| PANW | 1.23% | 0.77% |
Largest positions held only by QQQ: MU (4.69%), WMT (2.26%), CSCO (1.96%), AMGN (1.06%), LIN (1.01%). Only by VUG: LLY (2.72%), V (1.66%), MA (1.28%), GEV (0.76%), ORCL (0.64%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | QQQ | VUG |
|---|---|---|
| 2022 | -32.6% | -33.2% |
| 2023 | +54.9% | +46.8% |
| 2024 | +25.6% | +32.7% |
| 2025 | +20.8% | +19.4% |
| 2026 | +17.7% | +9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and VUG good diversifiers for each other?
No: a correlation of 0.98 means QQQ and VUG tend to fall together, which is precisely when diversification is supposed to help. The 58.8% holdings overlap makes the redundancy concrete: much of it is the same book twice.
FAQ
What is the correlation between QQQ and VUG?
The QQQ/VUG correlation stands at 0.98 on a 3-year window (1 year: 0.94, 5 years: 0.98), computed from weekly returns as of 2026-08-27.
Is VUG a good diversifier for QQQ?
No: a correlation of 0.98 means QQQ and VUG tend to fall together, which is precisely when diversification is supposed to help. The 58.8% holdings overlap makes the redundancy concrete: much of it is the same book twice.
How much do QQQ and VUG overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 58.8% by weight over 57 common positions.
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Related comparisons
Hubs: QQQ correlations · VUG correlations
