QQQM vs XLV: Correlation & Overlap
How closely do Invesco Nasdaq 100 ETF (QQQM) and Health Care Select Sector SPDR Fund (XLV) trade together? Their weekly returns over three years give a correlation of 0.24, which is weak. By holdings, the two funds overlap 3.9% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQM and XLV?
On 3 years of weekly data the QQQM/XLV correlation comes out at 0.24, weak. The link has loosened recently: the 1-year correlation (-0.10) runs below the 3-year figure (0.24). The 5-year figure is 0.42, and annualized covariance runs at 68.6 %².
Within QQQM's tracked universe of 103 assets, XLV comes in at #90 by 3-year correlation. Neither side won the trailing year by much: +26.4% against +27.5%. The relationship is regime-dependent: the rolling one-year correlation swung between -0.06 and 0.52 over the past three years, so this pair behaves very differently depending on the market environment.
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 XLV: side by side
| QQQM (Invesco Nasdaq 100 ETF) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +26.4% | +27.5% |
| 5-year return | +96.1% | +37.4% |
| Volatility (ann.) | 19.5% | 14.7% |
| Beta vs S&P 500 | 1.28 | 0.42 |
| Max drawdown (3Y) | -22.7% | -17.1% |
| Dividend yield | 0.46% | 1.56% |
| Expense ratio | 0.15% | 0.08% |
| Assets under management | $97.1B | $41.7B |
| 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. On the fund side, XLV sits in the Health category at State Street Investment Management, with $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield.
Portfolio overlap between QQQM and XLV
The two portfolios are largely distinct: 3.9% of the funds' weight sits in the same underlying holdings (8 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in QQQM | Weight in XLV |
|---|---|---|
| AMGN | 1.06% | 3.80% |
| GILD | 0.81% | 2.94% |
| VRTX | 0.62% | 2.22% |
| ISRG | 0.58% | 2.10% |
| REGN | 0.37% | 1.30% |
| IDXX | 0.19% | 0.70% |
| DXCM | 0.15% | 0.55% |
| GEHC | 0.15% | 0.53% |
Largest positions held only by QQQM: NVDA (8.15%), AAPL (7.39%), MSFT (5.93%), MU (4.69%), AMZN (4.50%). Only by XLV: LLY (15.03%), JNJ (10.38%), ABBV (7.42%), MRK (6.04%), UNH (5.82%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 8 common positions shown.
Year-by-year returns
| Year | QQQM | XLV |
|---|---|---|
| 2022 | -32.5% | -2.1% |
| 2023 | +55.0% | +2.1% |
| 2024 | +25.7% | +2.5% |
| 2025 | +20.9% | +14.5% |
| 2026 | +17.7% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQM and XLV good diversifiers for each other?
Reasonably. At 0.24, QQQM and XLV keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between QQQM and XLV?
The QQQM/XLV correlation stands at 0.24 on a 3-year window (1 year: -0.10, 5 years: 0.42), computed from weekly returns as of 2026-08-27.
Is XLV a good diversifier for QQQM?
Reasonably. At 0.24, QQQM and XLV keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do QQQM and XLV overlap?
3.9% by weight, across 8 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-xlv.json
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[](https://www.pairbook.io/pair/qqqm-vs-xlv/)
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Hubs: QQQM correlations · XLV correlations
