QQQM vs SMH: Correlation
Invesco Nasdaq 100 ETF (QQQM) and VanEck Semiconductor ETF (SMH) show a very strong relationship: their 3-year correlation of weekly returns is 0.90.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQM and SMH?
Across a 3-year window, the weekly returns of QQQM and SMH correlate at 0.90, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.86) sits close to the 3-year figure. Stretching to 5 years gives 0.89, with an annualized covariance of 590.4 %².
Among the 103 assets we track against QQQM, SMH ranks #14 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SMH outperformed by 66.7 percentage points (+26.4% for QQQM against +93.1% for SMH). Stability stands out here, with the rolling one-year correlation confined to 0.84 through 0.94. Note the risk asymmetry: SMH runs 1.7 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 SMH: side by side
| QQQM (Invesco Nasdaq 100 ETF) | SMH (VanEck Semiconductor ETF) | |
|---|---|---|
| 1-year return | +26.4% | +93.1% |
| 5-year return | +96.1% | +332.8% |
| Volatility (ann.) | 19.5% | 33.7% |
| Beta vs S&P 500 | 1.28 | 1.91 |
| Max drawdown (3Y) | -22.7% | -35.7% |
| Dividend yield | 0.46% | – |
| Expense ratio | 0.15% | – |
| Assets under management | $97.1B | – |
| Sector / category | ETF · US Growth & Tech | ETF · Thematic |
QQQM, Invesco's Large Growth fund, carries $97.1B under management, 105 holdings, a 0.15% expense ratio, a 0.46% trailing dividend yield.
Year-by-year returns
| Year | QQQM | SMH |
|---|---|---|
| 2022 | -32.5% | -33.5% |
| 2023 | +55.0% | +73.4% |
| 2024 | +25.7% | +39.1% |
| 2025 | +20.9% | +49.2% |
| 2026 | +17.7% | +59.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQM and SMH good diversifiers for each other?
No: a correlation of 0.90 means QQQM and SMH tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between QQQM and SMH?
The QQQM/SMH correlation stands at 0.90 on a 3-year window (1 year: 0.86, 5 years: 0.89), computed from weekly returns as of 2026-08-27.
Is SMH a good diversifier for QQQM?
No: a correlation of 0.90 means QQQM and SMH tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.90 mean?
A reading of 0.90 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qqqm-vs-smh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/qqqm-vs-smh/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: QQQM correlations · SMH correlations
