QQQM vs XLP: Correlation & Overlap
Measured on weekly returns over the past three years, Invesco Nasdaq 100 ETF (QQQM) and Consumer Staples Select Sector SPDR Fund (XLP) carry a correlation of 0.16, a weak link. The two funds also share 6.1% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQM and XLP?
Across a 3-year window, the weekly returns of QQQM and XLP correlate at 0.16, weak. The link has loosened recently: the 1-year correlation (-0.12) runs below the 3-year figure (0.16). Stretching to 5 years gives 0.39, with an annualized covariance of 34.9 %².
Among the 103 assets we track against QQQM, XLP ranks #91 by 3-year correlation. Correlation aside, the last 12 months split them widely, with QQQM ahead by 18.1 points (+26.4% versus +8.3%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.12 to 0.47. Risk is not evenly split, since QQQM carries 1.8 times the volatility of the other side.
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 XLP: side by side
| QQQM (Invesco Nasdaq 100 ETF) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +26.4% | +8.3% |
| 5-year return | +96.1% | +34.7% |
| Volatility (ann.) | 19.5% | 11.1% |
| Beta vs S&P 500 | 1.28 | 0.23 |
| Max drawdown (3Y) | -22.7% | -9.7% |
| Dividend yield | 0.46% | 2.58% |
| Expense ratio | 0.15% | 0.08% |
| Assets under management | $97.1B | $14.6B |
| 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, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Portfolio overlap between QQQM and XLP
The two portfolios are largely distinct. Weighing the shared positions, 6.1% of the two funds is identical, spread across 7 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in QQQM | Weight in XLP |
|---|---|---|
| WMT | 2.26% | 9.62% |
| COST | 1.88% | 8.92% |
| PEP | 0.86% | 4.39% |
| MNST | 0.41% | 4.28% |
| MDLZ | 0.36% | 4.37% |
| KDP | 0.19% | 2.75% |
| KHC | 0.13% | 1.33% |
Largest positions held only by QQQM: NVDA (8.15%), AAPL (7.39%), MSFT (5.93%), MU (4.69%), AMZN (4.50%). Only by XLP: KO (7.34%), PG (7.10%), PM (6.36%), TGT (4.67%), CL (4.56%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 7 common positions shown.
Year-by-year returns
| Year | QQQM | XLP |
|---|---|---|
| 2022 | -32.5% | -0.8% |
| 2023 | +55.0% | -0.8% |
| 2024 | +25.7% | +12.2% |
| 2025 | +20.9% | +1.5% |
| 2026 | +17.7% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQM and XLP good diversifiers for each other?
By historical standards, yes. A correlation of 0.16 means the two rarely move for the same reasons.
FAQ
What is the correlation between QQQM and XLP?
The QQQM/XLP correlation stands at 0.16 on a 3-year window (1 year: -0.12, 5 years: 0.39), computed from weekly returns as of 2026-08-27.
Is XLP a good diversifier for QQQM?
By historical standards, yes. A correlation of 0.16 means the two rarely move for the same reasons.
How much do QQQM and XLP overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 6.1% by weight over 7 common positions.
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