QQQM vs XLK: Correlation & Overlap
How closely do Invesco Nasdaq 100 ETF (QQQM) and Technology Select Sector SPDR Fund (XLK) trade together? Their weekly returns over three years give a correlation of 0.97, which is very strong. By holdings, the two funds overlap 54.5% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQM and XLK?
Over the past 3 years, QQQM and XLK moved with a correlation of 0.97, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.96 over 1 year against 0.97 over 3. Over 5 years the correlation is 0.97, and the annualized covariance of weekly returns is 452.7 %².
Within QQQM's tracked universe of 103 assets, XLK comes in at #4 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLK ahead by 17.0 points (+26.4% versus +43.4%). Stability stands out here, with the rolling one-year correlation confined to 0.95 through 0.98.
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 XLK: side by side
| QQQM (Invesco Nasdaq 100 ETF) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +26.4% | +43.4% |
| 5-year return | +96.1% | +145.2% |
| Volatility (ann.) | 19.5% | 24.0% |
| Beta vs S&P 500 | 1.28 | 1.50 |
| Max drawdown (3Y) | -22.7% | -25.7% |
| Dividend yield | 0.46% | 0.45% |
| Expense ratio | 0.15% | 0.08% |
| Assets under management | $97.1B | $115.4B |
| 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. On the fund side, XLK sits in the Technology category at State Street Investment Management, with $115.4B under management, 73 holdings, a 0.08% expense ratio, a 0.45% trailing dividend yield.
Portfolio overlap between QQQM and XLK
The two portfolios overlap heavily. Weighing the shared positions, 54.5% of the two funds is identical, spread across 35 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in QQQM | Weight in XLK |
|---|---|---|
| NVDA | 8.15% | 13.91% |
| AAPL | 7.39% | 12.61% |
| MSFT | 5.93% | 10.10% |
| MU | 4.69% | 3.99% |
| AMD | 3.48% | 4.09% |
| AVGO | 2.71% | 4.61% |
| INTC | 1.97% | 2.92% |
| CSCO | 1.96% | 2.97% |
| PLTR | 1.81% | 2.73% |
| LRCX | 1.73% | 2.62% |
| AMAT | 1.69% | 2.55% |
| PANW | 1.23% | 1.84% |
| KLAC | 1.07% | 1.61% |
| TXN | 1.06% | 1.59% |
| SNDK | 0.98% | 1.49% |
Largest positions held only by QQQM: AMZN (4.50%), GOOGL (3.20%), GOOG (2.97%), TSLA (2.77%), META (2.74%). Only by XLK: ORCL (1.69%), IBM (1.45%), ANET (1.40%), APH (1.33%), CRM (1.13%).
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 | XLK |
|---|---|---|
| 2022 | -32.5% | -27.7% |
| 2023 | +55.0% | +56.0% |
| 2024 | +25.7% | +21.6% |
| 2025 | +20.9% | +24.6% |
| 2026 | +17.7% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQM and XLK good diversifiers for each other?
Not really. At 0.97, the two trade almost as one position, and owning both buys little extra protection. They also hold much of the same portfolio (54.5% overlap), so the exposure is doubly redundant.
FAQ
What is the correlation between QQQM and XLK?
As of 2026-08-27, the correlation of weekly returns between QQQM and XLK is 0.97 over 3 years, 0.96 over 1 year and 0.97 over 5 years.
Is XLK a good diversifier for QQQM?
Not really. At 0.97, the two trade almost as one position, and owning both buys little extra protection. They also hold much of the same portfolio (54.5% overlap), so the exposure is doubly redundant.
How much do QQQM and XLK overlap?
The two funds share 35 holdings amounting to 54.5% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
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Related comparisons
Hubs: QQQM correlations · XLK correlations
