QQQ vs XLP: Correlation & Overlap
Measured on weekly returns over the past three years, Invesco QQQ Trust (QQQ) and Consumer Staples Select Sector SPDR Fund (XLP) carry a correlation of 0.16, a weak link. The two funds also share 6.1% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and XLP?
On 3 years of weekly data the QQQ/XLP correlation comes out at 0.16, weak. Lately the two have drifted apart, with the 1-year correlation at -0.12 versus 0.16 over 3 years. The 5-year figure is 0.39, and annualized covariance runs at 35.0 %².
Among the 4755 assets we track against QQQ, XLP ranks #3296 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months QQQ outperformed by 18.0 percentage points (+26.3% for QQQ against +8.3% for XLP). This link changes with the market regime, having swung between -0.12 and 0.47 on a rolling one-year basis. One caveat on sizing: QQQ is 1.8 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 XLP: side by side
| QQQ (Invesco QQQ Trust) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +26.3% | +8.3% |
| 5-year return | +95.4% | +34.7% |
| Volatility (ann.) | 19.6% | 11.1% |
| Beta vs S&P 500 | 1.28 | 0.23 |
| Max drawdown (3Y) | -22.8% | -9.7% |
| Dividend yield | 0.44% | 2.58% |
| Expense ratio | 0.18% | 0.08% |
| Assets under management | $452.8B | $14.6B |
| Sector / category | ETF · US Growth & Tech | Sector ETF |
QQQ is a Large Growth fund from Invesco: $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield. On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Portfolio overlap between QQQ and XLP
The two portfolios are largely distinct, with 7 holdings in common adding up to 6.1% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in QQQ | Weight in XLP |
|---|---|---|
| WMT | 2.26% | 9.62% |
| COST | 1.88% | 8.92% |
| PEP | 0.86% | 4.39% |
| MNST | 0.41% | 4.28% |
| MDLZ | 0.36% | 4.37% |
| KDP | 0.19% | 2.75% |
| KHC | 0.13% | 1.33% |
Largest positions held only by QQQ: NVDA (8.15%), AAPL (7.39%), MSFT (5.93%), MU (4.69%), AMZN (4.50%). Only by XLP: KO (7.34%), PG (7.10%), PM (6.36%), TGT (4.67%), CL (4.56%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 7 common positions shown.
Year-by-year returns
| Year | QQQ | XLP |
|---|---|---|
| 2022 | -32.6% | -0.8% |
| 2023 | +54.9% | -0.8% |
| 2024 | +25.6% | +12.2% |
| 2025 | +20.8% | +1.5% |
| 2026 | +17.7% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and XLP good diversifiers for each other?
By historical standards, yes. A correlation of 0.16 means the two rarely move for the same reasons.
FAQ
What is the correlation between QQQ and XLP?
As of 2026-08-27, the correlation of weekly returns between QQQ and XLP is 0.16 over 3 years, -0.12 over 1 year and 0.39 over 5 years.
Is XLP a good diversifier for QQQ?
By historical standards, yes. A correlation of 0.16 means the two rarely move for the same reasons.
How much do QQQ and XLP overlap?
The two funds share 7 holdings amounting to 6.1% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qqq-vs-xlp.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/qqq-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: QQQ correlations · XLP correlations
