QQQ vs XLU: Correlation & Overlap
How closely do Invesco QQQ Trust (QQQ) and Utilities Select Sector SPDR Fund (XLU) trade together? Their weekly returns over three years give a correlation of 0.10, which is weak. Looking through to holdings, 1.2% 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 XLU?
On 3 years of weekly data the QQQ/XLU correlation comes out at 0.10, weak. The past 12 months show a weaker link (-0.15) than the 3-year average (0.10). The 5-year figure is 0.28, and annualized covariance runs at 31.2 %².
By 3-year correlation, XLU places #3871 of the 4755 assets tracked against QQQ. Correlation aside, the last 12 months split them widely, with QQQ ahead by 22.2 points (+26.3% versus +4.1%). The relationship is regime-dependent: the rolling one-year correlation swung between -0.19 and 0.49 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 XLU: side by side
| QQQ (Invesco QQQ Trust) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +26.3% | +4.1% |
| 5-year return | +95.4% | +46.3% |
| Volatility (ann.) | 19.6% | 15.8% |
| Beta vs S&P 500 | 1.28 | 0.26 |
| Max drawdown (3Y) | -22.8% | -13.1% |
| Dividend yield | 0.44% | 2.70% |
| Expense ratio | 0.18% | 0.08% |
| Assets under management | $452.8B | $23.1B |
| 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. XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Portfolio overlap between QQQ and XLU
The two portfolios are largely distinct. Weighing the shared positions, 1.2% of the two funds is identical, spread across 4 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by QQQ: NVDA (8.15%), AAPL (7.39%), MSFT (5.93%), MU (4.69%), AMZN (4.50%). Only by XLU: NEE (12.94%), SO (7.45%), DUK (7.00%), D (4.33%), SRE (4.11%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 4 common positions shown.
Year-by-year returns
| Year | QQQ | XLU |
|---|---|---|
| 2022 | -32.6% | +1.4% |
| 2023 | +54.9% | -7.2% |
| 2024 | +25.6% | +23.3% |
| 2025 | +20.8% | +16.0% |
| 2026 | +17.7% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and XLU good diversifiers for each other?
Yes: at 0.10, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between QQQ and XLU?
The QQQ/XLU correlation stands at 0.10 on a 3-year window (1 year: -0.15, 5 years: 0.28), computed from weekly returns as of 2026-08-27.
Is XLU a good diversifier for QQQ?
Yes: at 0.10, the two have gone their own ways historically, which is what genuine diversification looks like.
How much do QQQ and XLU overlap?
The two funds share 4 holdings amounting to 1.2% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qqq-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/qqq-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
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Hubs: QQQ correlations · XLU correlations
