QQQ vs XBI: Correlation
Measured on weekly returns over the past three years, Invesco QQQ Trust (QQQ) and SPDR S&P Biotech ETF (XBI) carry a correlation of 0.51, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and XBI?
On 3 years of weekly data the QQQ/XBI correlation comes out at 0.51, moderate. The link has loosened recently: the 1-year correlation (0.41) runs below the 3-year figure (0.51). The 5-year figure is 0.57, and annualized covariance runs at 274.3 %².
Among the 4755 assets we track against QQQ, XBI ranks #259 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XBI outperformed by 60.9 percentage points (+26.3% for QQQ against +87.2% for XBI). On a rolling one-year basis the correlation drifted between 0.36 and 0.67, 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 XBI: side by side
| QQQ (Invesco QQQ Trust) | XBI (SPDR S&P Biotech ETF) | |
|---|---|---|
| 1-year return | +26.3% | +87.2% |
| 5-year return | +95.4% | +28.6% |
| Volatility (ann.) | 19.6% | 27.7% |
| Beta vs S&P 500 | 1.28 | 1.09 |
| Max drawdown (3Y) | -22.8% | -33.0% |
| Dividend yield | 0.44% | – |
| Expense ratio | 0.18% | – |
| Assets under management | $452.8B | – |
| Sector / category | ETF · US Growth & Tech | ETF · Thematic |
QQQ, Invesco's Large Growth fund, carries $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield.
Year-by-year returns
| Year | QQQ | XBI |
|---|---|---|
| 2022 | -32.6% | -25.9% |
| 2023 | +54.9% | +7.6% |
| 2024 | +25.6% | +1.0% |
| 2025 | +20.8% | +35.9% |
| 2026 | +17.7% | +38.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and XBI good diversifiers for each other?
To a limited degree. At 0.51 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between QQQ and XBI?
As of 2026-08-27, the correlation of weekly returns between QQQ and XBI is 0.51 over 3 years, 0.41 over 1 year and 0.57 over 5 years.
Is XBI a good diversifier for QQQ?
To a limited degree. At 0.51 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.51 mean?
A reading of 0.51 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
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Related comparisons
Hubs: QQQ correlations · XBI correlations
