QQQ vs XLRE: Correlation & Overlap
How closely do Invesco QQQ Trust (QQQ) and Real Estate Select Sector SPDR Fund (XLRE) trade together? Their weekly returns over three years give a correlation of 0.33, which is moderate. Looking through to holdings, 0% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and XLRE?
Over the past 3 years, QQQ and XLRE moved with a correlation of 0.33, which is moderate. The link has loosened recently: the 1-year correlation (0.09) runs below the 3-year figure (0.33). Over 5 years the correlation is 0.54, and the annualized covariance of weekly returns is 108.8 %².
By 3-year correlation, XLRE places #1250 of the 4755 assets tracked against QQQ. Correlation aside, the last 12 months split them widely, with QQQ ahead by 16.8 points (+26.3% versus +9.5%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.07 to 0.73.
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 XLRE: side by side
| QQQ (Invesco QQQ Trust) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +26.3% | +9.5% |
| 5-year return | +95.4% | +11.4% |
| Volatility (ann.) | 19.6% | 16.7% |
| Beta vs S&P 500 | 1.28 | 0.57 |
| Max drawdown (3Y) | -22.8% | -16.6% |
| Dividend yield | 0.44% | 3.12% |
| Expense ratio | 0.18% | 0.08% |
| Assets under management | $452.8B | $8.6B |
| 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, XLRE sits in the Real Estate category at State Street Investment Management, with $8.6B under management, 31 holdings, a 0.08% expense ratio, a 3.12% trailing dividend yield.
Portfolio overlap between QQQ and XLRE
The two portfolios are largely distinct: 0% of the funds' weight sits in the same underlying holdings (0 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 XLRE: WELL (11.43%), PLD (9.06%), EQIX (7.14%), AMT (5.49%), DLR (5.01%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | QQQ | XLRE |
|---|---|---|
| 2022 | -32.6% | -26.2% |
| 2023 | +54.9% | +12.4% |
| 2024 | +25.6% | +5.1% |
| 2025 | +20.8% | +2.6% |
| 2026 | +17.7% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and XLRE good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.33 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between QQQ and XLRE?
The QQQ/XLRE correlation stands at 0.33 on a 3-year window (1 year: 0.09, 5 years: 0.54), computed from weekly returns as of 2026-08-27.
Is XLRE a good diversifier for QQQ?
Yes, to a useful degree: a correlation of 0.33 leaves real independence between the two, which historically damped combined volatility.
How much do QQQ and XLRE overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
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Related comparisons
Hubs: QQQ correlations · XLRE correlations
