QQQM vs XLU: Correlation & Overlap
How closely do Invesco Nasdaq 100 ETF (QQQM) and Utilities Select Sector SPDR Fund (XLU) trade together? Their weekly returns over three years give a correlation of 0.10, which is weak. By holdings, the two funds overlap 1.2% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQM and XLU?
Across a 3-year window, the weekly returns of QQQM and XLU correlate at 0.10, weak. Lately the two have drifted apart, with the 1-year correlation at -0.15 versus 0.10 over 3 years. Stretching to 5 years gives 0.28, with an annualized covariance of 31.3 %².
Within QQQM's tracked universe of 103 assets, XLU comes in at #92 by 3-year correlation. Correlation aside, the last 12 months split them widely, with QQQM ahead by 22.3 points (+26.4% versus +4.1%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.19 to 0.49.
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 XLU: side by side
| QQQM (Invesco Nasdaq 100 ETF) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +26.4% | +4.1% |
| 5-year return | +96.1% | +46.3% |
| Volatility (ann.) | 19.5% | 15.8% |
| Beta vs S&P 500 | 1.28 | 0.26 |
| Max drawdown (3Y) | -22.7% | -13.1% |
| Dividend yield | 0.46% | 2.70% |
| Expense ratio | 0.15% | 0.08% |
| Assets under management | $97.1B | $23.1B |
| 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. XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Portfolio overlap between QQQM and XLU
The two portfolios are largely distinct. Weighing the shared positions, 1.2% of the two funds is identical, spread across 4 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by QQQM: NVDA (8.15%), AAPL (7.39%), MSFT (5.93%), MU (4.69%), AMZN (4.50%). Only by XLU: NEE (12.94%), SO (7.45%), DUK (7.00%), D (4.33%), SRE (4.11%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 4 common positions shown.
Year-by-year returns
| Year | QQQM | XLU |
|---|---|---|
| 2022 | -32.5% | +1.4% |
| 2023 | +55.0% | -7.2% |
| 2024 | +25.7% | +23.3% |
| 2025 | +20.9% | +16.0% |
| 2026 | +17.7% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQM and XLU good diversifiers for each other?
Yes: at 0.10, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between QQQM and XLU?
As of 2026-08-27, the correlation of weekly returns between QQQM and XLU is 0.10 over 3 years, -0.15 over 1 year and 0.28 over 5 years.
Is XLU a good diversifier for QQQM?
Yes: at 0.10, the two have gone their own ways historically, which is what genuine diversification looks like.
How much do QQQM and XLU overlap?
1.2% by weight, across 4 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-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/qqqm-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: QQQM correlations · XLU correlations
