QQQM vs VUG: Correlation & Overlap
How closely do Invesco Nasdaq 100 ETF (QQQM) and Vanguard Growth ETF (VUG) trade together? Their weekly returns over three years give a correlation of 0.98, which is very strong. Looking through to holdings, 58.8% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQM and VUG?
On 3 years of weekly data the QQQM/VUG correlation comes out at 0.98, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.94) sits close to the 3-year figure. The 5-year figure is 0.98, and annualized covariance runs at 368.0 %².
In QQQM's tracked universe of 103 assets, VUG sits right near the top at #3. Over the last 12 months QQQM came out ahead by 10.2 percentage points (+26.4% against +16.2%). Stability stands out here, with the rolling one-year correlation confined to 0.94 through 0.99.
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 VUG: side by side
| QQQM (Invesco Nasdaq 100 ETF) | VUG (Vanguard Growth ETF) | |
|---|---|---|
| 1-year return | +26.4% | +16.2% |
| 5-year return | +96.1% | +78.4% |
| Volatility (ann.) | 19.5% | 19.4% |
| Beta vs S&P 500 | 1.28 | 1.28 |
| Max drawdown (3Y) | -22.7% | -22.8% |
| Dividend yield | 0.46% | 0.40% |
| Expense ratio | 0.15% | 0.03% |
| Assets under management | $97.1B | $372.0B |
| 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. VUG, Vanguard's Large Growth fund, carries $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% trailing dividend yield.
Portfolio overlap between QQQM and VUG
The two portfolios overlap heavily. Weighing the shared positions, 58.8% of the two funds is identical, spread across 57 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in QQQM | Weight in VUG |
|---|---|---|
| NVDA | 8.15% | 12.84% |
| AAPL | 7.39% | 12.63% |
| MSFT | 5.93% | 9.61% |
| AMZN | 4.50% | 5.16% |
| GOOGL | 3.20% | 5.81% |
| GOOG | 2.97% | 4.64% |
| META | 2.74% | 3.41% |
| AVGO | 2.71% | 4.47% |
| TSLA | 2.77% | 2.45% |
| AMD | 3.48% | 2.17% |
| COST | 1.88% | 1.19% |
| AMAT | 1.69% | 1.14% |
| LRCX | 1.73% | 1.03% |
| NFLX | 1.52% | 0.86% |
| PANW | 1.23% | 0.77% |
Largest positions held only by QQQM: MU (4.69%), WMT (2.26%), CSCO (1.96%), AMGN (1.06%), LIN (1.00%). Only by VUG: LLY (2.72%), V (1.66%), MA (1.28%), GEV (0.76%), ORCL (0.64%).
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 | VUG |
|---|---|---|
| 2022 | -32.5% | -33.2% |
| 2023 | +55.0% | +46.8% |
| 2024 | +25.7% | +32.7% |
| 2025 | +20.9% | +19.4% |
| 2026 | +17.7% | +9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQM and VUG good diversifiers for each other?
No. With a correlation of 0.98, QQQM and VUG move nearly in lockstep, so holding both adds very little diversification. The 58.8% holdings overlap makes the redundancy concrete: much of it is the same book twice.
FAQ
What is the correlation between QQQM and VUG?
Using weekly returns as of 2026-08-27: 0.98 over 3 years, with 0.94 over the last year and 0.98 over 5 years.
Is VUG a good diversifier for QQQM?
No. With a correlation of 0.98, QQQM and VUG move nearly in lockstep, so holding both adds very little diversification. The 58.8% holdings overlap makes the redundancy concrete: much of it is the same book twice.
How much do QQQM and VUG overlap?
58.8% by weight, across 57 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
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Hubs: QQQM correlations · VUG correlations
