QQQM vs VEA: Correlation & Overlap
Measured on weekly returns over the past three years, Invesco Nasdaq 100 ETF (QQQM) and Vanguard FTSE Developed Markets ETF (VEA) carry a correlation of 0.69, a strong link. By holdings, the two funds overlap 1.6% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQM and VEA?
Over the past 3 years, QQQM and VEA moved with a correlation of 0.69, which is strong. Little has changed lately, as the 1-year reading of 0.68 lands near the 3-year figure. Over 5 years the correlation is 0.72, and the annualized covariance of weekly returns is 201.5 %².
By 3-year correlation, VEA places #35 of the 103 assets tracked against QQQM. Twelve-month performance is nearly a tie, at +26.4% for QQQM and +28.5% for VEA. The rolling one-year correlation stayed in a tight band between 0.58 and 0.76 over the past three years, which points to a structural rather than episodic relationship.
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 VEA: side by side
| QQQM (Invesco Nasdaq 100 ETF) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | +26.4% | +28.5% |
| 5-year return | +96.1% | +63.5% |
| Volatility (ann.) | 19.5% | 15.1% |
| Beta vs S&P 500 | 1.28 | 0.79 |
| Max drawdown (3Y) | -22.7% | -13.5% |
| Dividend yield | 0.46% | 2.56% |
| Expense ratio | 0.15% | 0.03% |
| Assets under management | $97.1B | $314.9B |
| Sector / category | ETF · US Growth & Tech | ETF · International |
QQQM, Invesco's Large Growth fund, carries $97.1B under management, 105 holdings, a 0.15% expense ratio, a 0.46% trailing dividend yield. VEA is a Foreign Large Blend fund from Vanguard: $314.9B under management, 3769 holdings, a 0.03% expense ratio, a 2.56% trailing dividend yield.
Portfolio overlap between QQQM and VEA
The two portfolios are largely distinct: 1.6% of the funds' weight sits in the same underlying holdings (10 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in QQQM | Weight in VEA |
|---|---|---|
| ASML | 0.71% | 2.00% |
| SHOP | 0.81% | 0.45% |
| ROP | 0.18% | 0.97% |
| FER | 0.19% | 0.09% |
| CCEP | 0.22% | 0.07% |
| TRI | 0.17% | 0.05% |
| ADP | 0.50% | 0.02% |
| WBD | 0.32% | 0.00% |
| STX | 0.84% | 0.00% |
| LIN | 1.00% | 0.00% |
Largest positions held only by QQQM: NVDA (8.15%), AAPL (7.39%), MSFT (5.93%), MU (4.69%), AMZN (4.50%). Only by VEA: 005930 (2.53%), 000660 (1.98%), HSBA (1.15%), SAN (0.94%), RY (0.92%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 10 common positions shown.
Year-by-year returns
| Year | QQQM | VEA |
|---|---|---|
| 2022 | -32.5% | -15.3% |
| 2023 | +55.0% | +17.9% |
| 2024 | +25.7% | +3.1% |
| 2025 | +20.9% | +35.2% |
| 2026 | +17.7% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQM and VEA good diversifiers for each other?
Only partially. A correlation of 0.69 means QQQM and VEA share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between QQQM and VEA?
The QQQM/VEA correlation stands at 0.69 on a 3-year window (1 year: 0.68, 5 years: 0.72), computed from weekly returns as of 2026-08-27.
Is VEA a good diversifier for QQQM?
Only partially. A correlation of 0.69 means QQQM and VEA share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do QQQM and VEA overlap?
1.6% by weight, across 10 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
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Hubs: QQQM correlations · VEA correlations
