QQQM vs XLB: Correlation & Overlap
How closely do Invesco Nasdaq 100 ETF (QQQM) and Materials Select Sector SPDR Fund (XLB) trade together? Their weekly returns over three years give a correlation of 0.47, which is moderate. The two funds also share 1.0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQM and XLB?
Across a 3-year window, the weekly returns of QQQM and XLB correlate at 0.47, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.22 versus 0.47 over 3 years. Stretching to 5 years gives 0.60, with an annualized covariance of 153.5 %².
Within QQQM's tracked universe of 103 assets, XLB comes in at #80 by 3-year correlation. Over the last 12 months QQQM came out ahead by 8.8 percentage points (+26.4% against +17.6%). On a rolling one-year basis the correlation drifted between 0.23 and 0.72, a moderate band.
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 XLB: side by side
| QQQM (Invesco Nasdaq 100 ETF) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +26.4% | +17.6% |
| 5-year return | +96.1% | +36.9% |
| Volatility (ann.) | 19.5% | 16.7% |
| Beta vs S&P 500 | 1.28 | 0.72 |
| Max drawdown (3Y) | -22.7% | -23.2% |
| Dividend yield | 0.46% | 1.68% |
| Expense ratio | 0.15% | 0.08% |
| Assets under management | $97.1B | $8.3B |
| Sector / category | ETF · US Growth & Tech | Sector ETF |
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. XLB is a Natural Resources fund from State Street Investment Management: $8.3B under management, 26 holdings, a 0.08% expense ratio, a 1.68% trailing dividend yield.
Portfolio overlap between QQQM and XLB
The two portfolios are largely distinct, with 1 holdings in common adding up to 1.0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in QQQM | Weight in XLB |
|---|---|---|
| LIN | 1.00% | 12.94% |
Largest positions held only by QQQM: NVDA (8.15%), AAPL (7.39%), MSFT (5.93%), MU (4.69%), AMZN (4.50%). Only by XLB: NEM (8.02%), FCX (6.48%), SHW (4.87%), ECL (4.80%), CTVA (4.72%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 1 common positions shown.
Year-by-year returns
| Year | QQQM | XLB |
|---|---|---|
| 2022 | -32.5% | -12.3% |
| 2023 | +55.0% | +12.5% |
| 2024 | +25.7% | +0.1% |
| 2025 | +20.9% | +9.9% |
| 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 XLB good diversifiers for each other?
Reasonably. At 0.47, QQQM and XLB keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between QQQM and XLB?
As of 2026-08-27, the correlation of weekly returns between QQQM and XLB is 0.47 over 3 years, 0.22 over 1 year and 0.60 over 5 years.
Is XLB a good diversifier for QQQM?
Reasonably. At 0.47, QQQM and XLB keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do QQQM and XLB overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 1.0% by weight over 1 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qqqm-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/qqqm-vs-xlb/)
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Related comparisons
Hubs: QQQM correlations · XLB correlations
