QQQ vs XLE: Correlation & Overlap
How closely do Invesco QQQ Trust (QQQ) and Energy Select Sector SPDR Fund (XLE) trade together? Their weekly returns over three years give a correlation of 0.03, which is near-zero. By holdings, the two funds overlap 0.5% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and XLE?
On 3 years of weekly data the QQQ/XLE correlation comes out at 0.03, near zero, meaning they move largely independently. The past 12 months show a weaker link (-0.47) than the 3-year average (0.03). The 5-year figure is 0.11, and annualized covariance runs at 15.6 %².
By 3-year correlation, XLE places #4351 of the 4755 assets tracked against QQQ. Correlation aside, the last 12 months split them widely, with XLE ahead by 17.7 points (+26.3% versus +44.0%). The relationship is regime-dependent: the rolling one-year correlation swung between -0.50 and 0.46 over the past three years, so this pair behaves very differently depending on the market environment.
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 XLE: side by side
| QQQ (Invesco QQQ Trust) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +26.3% | +44.0% |
| 5-year return | +95.4% | +206.7% |
| Volatility (ann.) | 19.6% | 23.1% |
| Beta vs S&P 500 | 1.28 | 0.27 |
| Max drawdown (3Y) | -22.8% | -20.1% |
| Dividend yield | 0.44% | 2.55% |
| Expense ratio | 0.18% | 0.08% |
| Assets under management | $452.8B | $39.2B |
| Sector / category | ETF · US Growth & Tech | Sector ETF |
QQQ, Invesco's Large Growth fund, carries $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield. XLE is an Equity Energy fund from State Street Investment Management: $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% trailing dividend yield.
Portfolio overlap between QQQ and XLE
The two portfolios are largely distinct: 0.5% of the funds' weight sits in the same underlying holdings (2 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 XLE: XOM (20.03%), CVX (14.84%), COP (6.30%), MPC (5.40%), PSX (5.37%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 2 common positions shown.
Year-by-year returns
| Year | QQQ | XLE |
|---|---|---|
| 2022 | -32.6% | +64.3% |
| 2023 | +54.9% | -0.6% |
| 2024 | +25.6% | +5.6% |
| 2025 | +20.8% | +7.9% |
| 2026 | +17.7% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and XLE good diversifiers for each other?
Yes. With a correlation of 0.03, QQQ and XLE have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between QQQ and XLE?
As of 2026-08-27, the correlation of weekly returns between QQQ and XLE is 0.03 over 3 years, -0.47 over 1 year and 0.11 over 5 years.
Is XLE a good diversifier for QQQ?
Yes. With a correlation of 0.03, QQQ and XLE have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
How much do QQQ and XLE overlap?
0.5% by weight, across 2 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qqq-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/qqq-vs-xle/)
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Hubs: QQQ correlations · XLE correlations
