QQQM vs XLI: Correlation & Overlap
Invesco Nasdaq 100 ETF (QQQM) and Industrial Select Sector SPDR Fund (XLI) show a strong relationship: their 3-year correlation of weekly returns is 0.68. The two funds also share 3.1% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQM and XLI?
Across a 3-year window, the weekly returns of QQQM and XLI correlate at 0.68, strong. The link has loosened recently: the 1-year correlation (0.46) runs below the 3-year figure (0.68). Stretching to 5 years gives 0.72, with an annualized covariance of 208.5 %².
Among the 103 assets we track against QQQM, XLI ranks #38 by 3-year correlation. On 12-month performance QQQM holds a 8.1-point edge, +26.4% against +18.3%. The rolling one-year correlation moved between 0.42 and 0.86 over the past three years, a moderate range.
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 XLI: side by side
| QQQM (Invesco Nasdaq 100 ETF) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +26.4% | +18.3% |
| 5-year return | +96.1% | +84.0% |
| Volatility (ann.) | 19.5% | 15.7% |
| Beta vs S&P 500 | 1.28 | 0.89 |
| Max drawdown (3Y) | -22.7% | -18.5% |
| Dividend yield | 0.46% | 1.15% |
| Expense ratio | 0.15% | 0.08% |
| Assets under management | $97.1B | $32.9B |
| 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. XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Portfolio overlap between QQQM and XLI
The two portfolios are largely distinct. Weighing the shared positions, 3.1% of the two funds is identical, spread across 11 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in QQQM | Weight in XLI |
|---|---|---|
| ADP | 0.50% | 1.98% |
| CSX | 0.43% | 1.70% |
| CTAS | 0.37% | 1.23% |
| HON | 0.31% | 1.23% |
| PCAR | 0.30% | 1.20% |
| FAST | 0.26% | 1.04% |
| HONA | 0.23% | 0.92% |
| AXON | 0.22% | 0.86% |
| PAYX | 0.20% | 0.71% |
| ODFL | 0.18% | 0.64% |
| CPRT | 0.13% | 0.51% |
Largest positions held only by QQQM: NVDA (8.15%), AAPL (7.39%), MSFT (5.93%), MU (4.69%), AMZN (4.50%). Only by XLI: CAT (6.68%), GE (6.52%), RTX (5.04%), GEV (4.52%), UNP (3.25%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 11 common positions shown.
Year-by-year returns
| Year | QQQM | XLI |
|---|---|---|
| 2022 | -32.5% | -5.6% |
| 2023 | +55.0% | +18.1% |
| 2024 | +25.7% | +17.3% |
| 2025 | +20.9% | +19.3% |
| 2026 | +17.7% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQM and XLI good diversifiers for each other?
Only partially. A correlation of 0.68 means QQQM and XLI 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 XLI?
Using weekly returns as of 2026-08-27: 0.68 over 3 years, with 0.46 over the last year and 0.72 over 5 years.
Is XLI a good diversifier for QQQM?
Only partially. A correlation of 0.68 means QQQM and XLI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do QQQM and XLI overlap?
3.1% by weight, across 11 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qqqm-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/qqqm-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: QQQM correlations · XLI correlations
