QQQ vs VYM: Correlation & Overlap
How closely do Invesco QQQ Trust (QQQ) and Vanguard High Dividend Yield ETF (VYM) trade together? Their weekly returns over three years give a correlation of 0.63, which is strong. The two funds also share 14.9% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and VYM?
On 3 years of weekly data the QQQ/VYM correlation comes out at 0.63, strong. Lately the two have drifted apart, with the 1-year correlation at 0.47 versus 0.63 over 3 years. The 5-year figure is 0.66, and annualized covariance runs at 152.0 %².
By 3-year correlation, VYM places #106 of the 4755 assets tracked against QQQ. On 12-month performance QQQ holds a 5.2-point edge, +26.3% against +21.1%. The rolling one-year correlation moved between 0.39 and 0.85 over the past three years, a moderate range. Note the risk asymmetry: QQQ runs 1.6 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 VYM: side by side
| QQQ (Invesco QQQ Trust) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +26.3% | +21.1% |
| 5-year return | +95.4% | +76.6% |
| Volatility (ann.) | 19.6% | 12.3% |
| Beta vs S&P 500 | 1.28 | 0.69 |
| Max drawdown (3Y) | -22.8% | -14.5% |
| Dividend yield | 0.44% | 2.24% |
| Expense ratio | 0.18% | 0.04% |
| Assets under management | $452.8B | $99.2B |
| Sector / category | ETF · US Growth & Tech | ETF · Dividend |
QQQ, Invesco's Large Growth fund, carries $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield. VYM, Vanguard's Large Value fund, carries $99.2B under management, 604 holdings, a 0.04% expense ratio, a 2.24% trailing dividend yield.
Portfolio overlap between QQQ and VYM
The two portfolios are largely distinct: 14.9% of the funds' weight sits in the same underlying holdings (28 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in QQQ | Weight in VYM |
|---|---|---|
| AVGO | 2.71% | 7.37% |
| CSCO | 1.96% | 1.87% |
| TXN | 1.06% | 1.02% |
| LIN | 1.01% | 0.90% |
| AMGN | 1.06% | 0.78% |
| PEP | 0.86% | 0.78% |
| ADI | 0.80% | 0.73% |
| GILD | 0.82% | 0.66% |
| QCOM | 0.77% | 0.63% |
| SBUX | 0.55% | 0.49% |
| ADP | 0.50% | 0.43% |
| CMCSA | 0.43% | 0.35% |
| TMUS | 0.86% | 0.34% |
| MDLZ | 0.36% | 0.33% |
| HON | 0.31% | 0.31% |
Largest positions held only by QQQ: NVDA (8.15%), AAPL (7.39%), MSFT (5.93%), MU (4.69%), AMZN (4.50%). Only by VYM: JPM (3.83%), XOM (2.63%), JNJ (2.51%), ABBV (1.81%), BAC (1.67%).
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 | VYM |
|---|---|---|
| 2022 | -32.6% | -0.4% |
| 2023 | +54.9% | +6.6% |
| 2024 | +25.6% | +17.6% |
| 2025 | +20.8% | +15.4% |
| 2026 | +17.7% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and VYM good diversifiers for each other?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between QQQ and VYM?
As of 2026-08-27, the correlation of weekly returns between QQQ and VYM is 0.63 over 3 years, 0.47 over 1 year and 0.66 over 5 years.
Is VYM a good diversifier for QQQ?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do QQQ and VYM overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 14.9% by weight over 28 common positions.
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