QQQM vs TSM: Correlation
Invesco Nasdaq 100 ETF (QQQM) and Taiwan Semiconductor Manufacturing Company Ltd. (TSM) show a strong relationship: their 3-year correlation of weekly returns is 0.72.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQM and TSM?
Across a 3-year window, the weekly returns of QQQM and TSM correlate at 0.72, strong. Lately the two have drifted apart, with the 1-year correlation at 0.57 versus 0.72 over 3 years. Stretching to 5 years gives 0.66, with an annualized covariance of 486.3 %².
Within QQQM's tracked universe of 103 assets, TSM comes in at #28 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months TSM outperformed by 54.1 percentage points (+26.4% for QQQM against +80.5% for TSM). One caveat on sizing: TSM is 1.8 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 TSM: side by side
| QQQM (Invesco Nasdaq 100 ETF) | TSM (Taiwan Semiconductor Manufacturing Company Ltd.) | |
|---|---|---|
| 1-year return | +26.4% | +80.5% |
| 5-year return | +96.1% | +289.6% |
| Volatility (ann.) | 19.5% | 34.9% |
| Beta vs S&P 500 | 1.28 | 1.59 |
| Max drawdown (3Y) | -22.7% | -36.8% |
| Market cap | – | $2,216.2B |
| P/E (trailing) | – | 31.1 |
| Dividend yield | 0.46% | 6.22% |
| Expense ratio | 0.15% | – |
| Assets under management | $97.1B | – |
| Sector / category | ETF · US Growth & Tech | US Listed |
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.
Year-by-year returns
| Year | QQQM | TSM |
|---|---|---|
| 2022 | -32.5% | -36.7% |
| 2023 | +55.0% | +42.3% |
| 2024 | +25.7% | +92.6% |
| 2025 | +20.9% | +55.9% |
| 2026 | +17.7% | +41.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQM and TSM good diversifiers for each other?
Somewhat, no more. With 0.72 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between QQQM and TSM?
The QQQM/TSM correlation stands at 0.72 on a 3-year window (1 year: 0.57, 5 years: 0.66), computed from weekly returns as of 2026-08-27.
Is TSM a good diversifier for QQQM?
Somewhat, no more. With 0.72 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.72 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qqqm-vs-tsm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/qqqm-vs-tsm/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: QQQM correlations · TSM correlations
