QQQ vs XLI: Correlation & Overlap
Invesco QQQ Trust (QQQ) and Industrial Select Sector SPDR Fund (XLI) show a strong relationship: their 3-year correlation of weekly returns is 0.68. The two funds also share 3.1% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and XLI?
On 3 years of weekly data the QQQ/XLI correlation comes out at 0.68, strong. The past 12 months show a weaker link (0.46) than the 3-year average (0.68). The 5-year figure is 0.72, and annualized covariance runs at 209.8 %².
Among the 4755 assets we track against QQQ, XLI ranks #76 by 3-year correlation. On 12-month performance QQQ holds a 8.0-point edge, +26.3% against +18.3%. Across three years, the rolling one-year figure varied moderately, from 0.43 to 0.86.
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 XLI: side by side
| QQQ (Invesco QQQ Trust) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +26.3% | +18.3% |
| 5-year return | +95.4% | +84.0% |
| Volatility (ann.) | 19.6% | 15.7% |
| Beta vs S&P 500 | 1.28 | 0.89 |
| Max drawdown (3Y) | -22.8% | -18.5% |
| Dividend yield | 0.44% | 1.15% |
| Expense ratio | 0.18% | 0.08% |
| Assets under management | $452.8B | $32.9B |
| Sector / category | ETF · US Growth & Tech | Sector ETF |
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. XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Portfolio overlap between QQQ and XLI
The two portfolios are largely distinct, with 11 holdings in common adding up to 3.1% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in QQQ | Weight in XLI |
|---|---|---|
| ADP | 0.50% | 1.98% |
| CSX | 0.43% | 1.70% |
| CTAS | 0.37% | 1.23% |
| HON | 0.31% | 1.23% |
| PCAR | 0.30% | 1.20% |
| FAST | 0.26% | 1.04% |
| HONA | 0.23% | 0.92% |
| AXON | 0.22% | 0.86% |
| PAYX | 0.20% | 0.71% |
| ODFL | 0.18% | 0.64% |
| CPRT | 0.13% | 0.51% |
Largest positions held only by QQQ: NVDA (8.15%), AAPL (7.39%), MSFT (5.93%), MU (4.69%), AMZN (4.50%). Only by XLI: CAT (6.68%), GE (6.52%), RTX (5.04%), GEV (4.52%), UNP (3.25%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 11 common positions shown.
Year-by-year returns
| Year | QQQ | XLI |
|---|---|---|
| 2022 | -32.6% | -5.6% |
| 2023 | +54.9% | +18.1% |
| 2024 | +25.6% | +17.3% |
| 2025 | +20.8% | +19.3% |
| 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 XLI good diversifiers for each other?
Only partially. A correlation of 0.68 means QQQ and XLI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between QQQ and XLI?
Using weekly returns as of 2026-08-27: 0.68 over 3 years, with 0.46 over the last year and 0.72 over 5 years.
Is XLI a good diversifier for QQQ?
Only partially. A correlation of 0.68 means QQQ and XLI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do QQQ and XLI overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 3.1% by weight over 11 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qqq-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/qqq-vs-xli/)
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Related comparisons
Hubs: QQQ correlations · XLI correlations
