QQQM vs QUAL: Correlation & Overlap
How closely do Invesco Nasdaq 100 ETF (QQQM) and iShares MSCI USA Quality Factor ETF (QUAL) trade together? Their weekly returns over three years give a correlation of 0.90, which is very strong. The two funds also share 40.7% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQM and QUAL?
Across a 3-year window, the weekly returns of QQQM and QUAL correlate at 0.90, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.81) sits close to the 3-year figure. Stretching to 5 years gives 0.93, with an annualized covariance of 245.6 %².
Among the 103 assets we track against QQQM, QUAL ranks #13 by 3-year correlation. The trailing year gives QQQM the advantage: +26.4% versus +19.7%, a 6.7-point spread. Stability stands out here, with the rolling one-year correlation confined to 0.80 through 0.95.
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.
QQQM vs QUAL: side by side
| QQQM (Invesco Nasdaq 100 ETF) | QUAL (iShares MSCI USA Quality Factor ETF) | |
|---|---|---|
| 1-year return | +26.4% | +19.7% |
| 5-year return | +96.1% | +68.0% |
| Volatility (ann.) | 19.5% | 14.0% |
| Beta vs S&P 500 | 1.28 | 0.93 |
| Max drawdown (3Y) | -22.7% | -18.0% |
| Dividend yield | 0.46% | 0.86% |
| Expense ratio | 0.15% | 0.15% |
| Assets under management | $97.1B | $46.5B |
| Sector / category | ETF · US Growth & Tech | ETF · US Style |
QQQM is a Large Growth fund from Invesco: $97.1B under management, 105 holdings, a 0.15% expense ratio, a 0.46% trailing dividend yield. QUAL, iShares's Large Blend fund, carries $46.5B under management, 123 holdings, a 0.15% expense ratio, a 0.86% trailing dividend yield.
Portfolio overlap between QQQM and QUAL
The two portfolios overlap heavily, with 34 holdings in common adding up to 40.7% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in QQQM | Weight in QUAL |
|---|---|---|
| AAPL | 7.39% | 6.62% |
| NVDA | 8.15% | 6.00% |
| MSFT | 5.93% | 7.51% |
| META | 2.74% | 3.75% |
| GOOGL | 3.20% | 1.93% |
| LRCX | 1.73% | 3.66% |
| AMAT | 1.69% | 2.88% |
| NFLX | 1.52% | 1.91% |
| GOOG | 2.97% | 1.52% |
| COST | 1.88% | 1.09% |
| KLAC | 1.07% | 2.44% |
| LIN | 1.00% | 1.02% |
| WMT | 2.26% | 0.91% |
| GILD | 0.81% | 0.69% |
| FTNT | 0.51% | 1.10% |
Largest positions held only by QQQM: MU (4.69%), AMZN (4.50%), AMD (3.48%), TSLA (2.77%), AVGO (2.71%). Only by QUAL: LLY (3.72%), TJX (3.40%), V (3.26%), MA (2.34%), XOM (2.18%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | QQQM | QUAL |
|---|---|---|
| 2022 | -32.5% | -20.5% |
| 2023 | +55.0% | +30.9% |
| 2024 | +25.7% | +22.3% |
| 2025 | +20.9% | +12.7% |
| 2026 | +17.7% | +13.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQM and QUAL good diversifiers for each other?
No. With a correlation of 0.90, QQQM and QUAL move nearly in lockstep, so holding both adds very little diversification. They also hold much of the same portfolio (40.7% overlap), so the exposure is doubly redundant.
FAQ
What is the correlation between QQQM and QUAL?
The QQQM/QUAL correlation stands at 0.90 on a 3-year window (1 year: 0.81, 5 years: 0.93), computed from weekly returns as of 2026-08-27.
Is QUAL a good diversifier for QQQM?
No. With a correlation of 0.90, QQQM and QUAL move nearly in lockstep, so holding both adds very little diversification. They also hold much of the same portfolio (40.7% overlap), so the exposure is doubly redundant.
How much do QQQM and QUAL overlap?
The two funds share 34 holdings amounting to 40.7% of weight, per issuer portfolio files dated 2026-08-26.
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Hubs: QQQM correlations · QUAL correlations
