QQQ vs XLV: Correlation & Overlap
Invesco QQQ Trust (QQQ) and Health Care Select Sector SPDR Fund (XLV) show a weak relationship: their 3-year correlation of weekly returns is 0.24. The two funds also share 3.9% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and XLV?
On 3 years of weekly data the QQQ/XLV correlation comes out at 0.24, weak. Lately the two have drifted apart, with the 1-year correlation at -0.10 versus 0.24 over 3 years. The 5-year figure is 0.42, and annualized covariance runs at 68.6 %².
Among the 4755 assets we track against QQQ, XLV ranks #2345 by 3-year correlation. Their 12-month results are close: +26.3% for QQQ against +27.5% for XLV. The relationship is regime-dependent: the rolling one-year correlation swung between -0.07 and 0.52 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 XLV: side by side
| QQQ (Invesco QQQ Trust) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +26.3% | +27.5% |
| 5-year return | +95.4% | +37.4% |
| Volatility (ann.) | 19.6% | 14.7% |
| Beta vs S&P 500 | 1.28 | 0.42 |
| Max drawdown (3Y) | -22.8% | -17.1% |
| Dividend yield | 0.44% | 1.56% |
| Expense ratio | 0.18% | 0.08% |
| Assets under management | $452.8B | $41.7B |
| 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. On the fund side, XLV sits in the Health category at State Street Investment Management, with $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield.
Portfolio overlap between QQQ and XLV
The two portfolios are largely distinct, with 8 holdings in common adding up to 3.9% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in QQQ | Weight in XLV |
|---|---|---|
| AMGN | 1.06% | 3.80% |
| GILD | 0.82% | 2.94% |
| VRTX | 0.62% | 2.22% |
| ISRG | 0.58% | 2.10% |
| REGN | 0.37% | 1.30% |
| IDXX | 0.19% | 0.70% |
| DXCM | 0.15% | 0.55% |
| GEHC | 0.15% | 0.53% |
Largest positions held only by QQQ: NVDA (8.15%), AAPL (7.39%), MSFT (5.93%), MU (4.69%), AMZN (4.50%). Only by XLV: LLY (15.03%), JNJ (10.38%), ABBV (7.42%), MRK (6.04%), UNH (5.82%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 8 common positions shown.
Year-by-year returns
| Year | QQQ | XLV |
|---|---|---|
| 2022 | -32.6% | -2.1% |
| 2023 | +54.9% | +2.1% |
| 2024 | +25.6% | +2.5% |
| 2025 | +20.8% | +14.5% |
| 2026 | +17.7% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and XLV good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.24 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between QQQ and XLV?
As of 2026-08-27, the correlation of weekly returns between QQQ and XLV is 0.24 over 3 years, -0.10 over 1 year and 0.42 over 5 years.
Is XLV a good diversifier for QQQ?
Yes, to a useful degree: a correlation of 0.24 leaves real independence between the two, which historically damped combined volatility.
How much do QQQ and XLV overlap?
The two funds share 8 holdings amounting to 3.9% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qqq-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/qqq-vs-xlv/)
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