QQQM vs XLE: Correlation & Overlap
Measured on weekly returns over the past three years, Invesco Nasdaq 100 ETF (QQQM) and Energy Select Sector SPDR Fund (XLE) carry a correlation of 0.04, a near-zero link. By holdings, the two funds overlap 0.5% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQM and XLE?
Over the past 3 years, QQQM and XLE moved with a correlation of 0.04, which is near zero, meaning they move largely independently. The link has loosened recently: the 1-year correlation (-0.47) runs below the 3-year figure (0.04). Over 5 years the correlation is 0.11, and the annualized covariance of weekly returns is 15.7 %².
Within QQQM's tracked universe of 103 assets, XLE comes in at #93 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLE ahead by 17.6 points (+26.4% versus +44.0%). This link changes with the market regime, having swung between -0.50 and 0.46 on a rolling one-year basis.
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 XLE: side by side
| QQQM (Invesco Nasdaq 100 ETF) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +26.4% | +44.0% |
| 5-year return | +96.1% | +206.7% |
| Volatility (ann.) | 19.5% | 23.1% |
| Beta vs S&P 500 | 1.28 | 0.27 |
| Max drawdown (3Y) | -22.7% | -20.1% |
| Dividend yield | 0.46% | 2.55% |
| Expense ratio | 0.15% | 0.08% |
| Assets under management | $97.1B | $39.2B |
| Sector / category | ETF · US Growth & Tech | Sector ETF |
On the fund side, QQQM sits in the Large Growth category at Invesco, with $97.1B under management, 105 holdings, a 0.15% expense ratio, a 0.46% trailing dividend yield. XLE is an Equity Energy fund from State Street Investment Management: $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% trailing dividend yield.
Portfolio overlap between QQQM and XLE
The two portfolios are largely distinct: 0.5% of the funds' weight sits in the same underlying holdings (2 common positions). Correlation tells you they move together; overlap tells you why.
Largest positions held only by QQQM: NVDA (8.15%), AAPL (7.39%), MSFT (5.93%), MU (4.69%), AMZN (4.50%). Only by XLE: XOM (20.03%), CVX (14.84%), COP (6.30%), MPC (5.40%), PSX (5.37%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 2 common positions shown.
Year-by-year returns
| Year | QQQM | XLE |
|---|---|---|
| 2022 | -32.5% | +64.3% |
| 2023 | +55.0% | -0.6% |
| 2024 | +25.7% | +5.6% |
| 2025 | +20.9% | +7.9% |
| 2026 | +17.7% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQM and XLE good diversifiers for each other?
By historical standards, yes. A correlation of 0.04 means the two rarely move for the same reasons.
FAQ
What is the correlation between QQQM and XLE?
Using weekly returns as of 2026-08-27: 0.04 over 3 years, with -0.47 over the last year and 0.11 over 5 years.
Is XLE a good diversifier for QQQM?
By historical standards, yes. A correlation of 0.04 means the two rarely move for the same reasons.
How much do QQQM and XLE overlap?
The two funds share 2 holdings amounting to 0.5% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qqqm-vs-xle.json
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Hubs: QQQM correlations · XLE correlations
