Does QQQ add diversification to VOO?
QQQ changes the mix toward Nasdaq-listed companies. Its returns can remain closely related to VOO; an extra fund name does not necessarily add independent exposure.
Measured example
Yahoo adjusted-close monthly returns, dividends reinvested; 2010-10-01 to 2026-09-01, 191 common monthly returns. Nominal figures. Derived from preserved real observations by the shared calculation code at build time.
| Pair | Correlation |
|---|---|
| VOO / QQQ | 0.9099 |
For the illustrative mix (VOO 50.0%, QQQ 50.0%), monthly rebalancing produced historical CAGR 16.85%, volatility 15.28% and measured monthly maximum drawdown 28.27%. These are observations, not expected future results.
Correlation = covariance of monthly returns ÷ (standard deviation of each series). Fund-category overlap is qualitative; exact overlapping weights and shared holdings are not measured here.
Calculation details and worked exampleCheck your own holdings
For educational purposes only. Not investment advice. Past performance does not guarantee future results.