QQQ vs VWO: Correlation & Overlap
Invesco QQQ Trust (QQQ) and Vanguard FTSE Emerging Markets ETF (VWO) show a strong relationship: their 3-year correlation of weekly returns is 0.70. Looking through to holdings, 0.3% 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 VWO?
On 3 years of weekly data the QQQ/VWO correlation comes out at 0.70, strong. Recent behaviour matches the longer record: 0.74 over 1 year against 0.70 over 3. The 5-year figure is 0.64, and annualized covariance runs at 207.0 %².
By 3-year correlation, VWO places #63 of the 4755 assets tracked against QQQ. Neither side won the trailing year by much: +26.3% against +21.6%. On a rolling one-year basis the correlation drifted between 0.47 and 0.77, a moderate band.
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 VWO: side by side
| QQQ (Invesco QQQ Trust) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +26.3% | +21.6% |
| 5-year return | +95.4% | +38.2% |
| Volatility (ann.) | 19.6% | 15.2% |
| Beta vs S&P 500 | 1.28 | 0.75 |
| Max drawdown (3Y) | -22.8% | -17.4% |
| Dividend yield | 0.44% | 2.36% |
| Expense ratio | 0.18% | 0.06% |
| Assets under management | $452.8B | $162.0B |
| Sector / category | ETF · US Growth & Tech | ETF · International |
QQQ, Invesco's Large Growth fund, carries $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield. On the fund side, VWO sits in the Diversified Emerging Mkts category at Vanguard, with $162.0B under management, 4113 holdings, a 0.06% expense ratio, a 2.36% trailing dividend yield.
Portfolio overlap between QQQ and VWO
The two portfolios are largely distinct. Weighing the shared positions, 0.3% of the two funds is identical, spread across 1 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in QQQ | Weight in VWO |
|---|---|---|
| PDD | 0.26% | 0.71% |
Largest positions held only by QQQ: NVDA (8.15%), AAPL (7.39%), MSFT (5.93%), MU (4.69%), AMZN (4.50%). Only by VWO: 2330 (18.65%), 700 (3.97%), 9988 (2.90%), 2454 (1.62%), 939 (1.07%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 1 common positions shown.
Year-by-year returns
| Year | QQQ | VWO |
|---|---|---|
| 2022 | -32.6% | -18.0% |
| 2023 | +54.9% | +9.3% |
| 2024 | +25.6% | +10.6% |
| 2025 | +20.8% | +25.6% |
| 2026 | +17.7% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and VWO good diversifiers for each other?
Somewhat, no more. With 0.70 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between QQQ and VWO?
The QQQ/VWO correlation stands at 0.70 on a 3-year window (1 year: 0.74, 5 years: 0.64), computed from weekly returns as of 2026-08-27.
Is VWO a good diversifier for QQQ?
Somewhat, no more. With 0.70 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do QQQ and VWO overlap?
The two funds share 1 holdings amounting to 0.3% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qqq-vs-vwo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/qqq-vs-vwo/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: QQQ correlations · VWO correlations
