Nasdaq 100 vs Russell 2000
Live side-by-side comparison with current values, changes, and key statistics.
Why This Comparison Matters
QQQ represents the largest tech and growth names with global revenue exposure, while IWM captures small-cap companies more dependent on domestic economic health. When QQQ leads by a wide margin, the market is rewarding secular growth and ignoring credit conditions. When IWM catches up, it signals broadening economic confidence and often precedes a rotation into cyclicals.
Cross-Asset Analysis
Nasdaq 100 ETF (QQQ) captures invesco QQQ tracking the Nasdaq 100, tech-heavy growth index, whereas Russell 2000 ETF (IWM) reflects iShares Russell 2000 ETF, small-cap equity benchmark, and the difference between how they move is what the peer pair relationship is really about. Pairs like Nasdaq 100 ETF (QQQ) and Russell 2000 ETF (IWM) trade tighter than either leg does individually, because the common component is high and the remaining idiosyncratic share is what the pair expresses. Index construction choices inside Nasdaq 100 ETF (QQQ) and Russell 2000 ETF (IWM), including weighting methodology and inclusion rules, create persistent tilts that show up in the spread.
Late-cycle environments force Nasdaq 100 ETF (QQQ) and Russell 2000 ETF (IWM) to express their respective defensive and cyclical tilts more sharply, making the spread a useful regime tell. A peer comparison like Nasdaq 100 ETF (QQQ) compared to Russell 2000 ETF (IWM) strips out the common-factor beta and leaves behind the differences in sector mix, capitalization, style, or geography. Factor exposures embedded inside Nasdaq 100 ETF (QQQ) and Russell 2000 ETF (IWM) drive their relative performance, with growth-value, large-small, and domestic-international all surfacing in the spread.
Nasdaq 100 ETF (QQQ) and Russell 2000 ETF (IWM) occupy the same asset class, and the relative performance between them isolates the specific factor that distinguishes one from the other. Nasdaq 100 ETF (QQQ) and Russell 2000 ETF (IWM) look similar at a glance, but the embedded factor tilts between them matter a great deal over time.
90-Day Statistics
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Frequently Asked Questions
What is the relationship between Nasdaq 100 ETF (QQQ) and Russell 2000 ETF (IWM)?+
Nasdaq 100 ETF (QQQ) and Russell 2000 ETF (IWM) are connected through shared asset class exposure with different factor tilts. When the underlying asset class shifts, both respond, though with different sensitivities and at different speeds. The spread between Nasdaq 100 ETF (QQQ) and Russell 2000 ETF (IWM) captures the specific macro signal that flows through this relationship.
When does Nasdaq 100 ETF (QQQ) typically lead Russell 2000 ETF (IWM)?+
Nasdaq 100 ETF (QQQ) tends to lead Russell 2000 ETF (IWM) during rotation episodes between the two factor exposures. In those periods, moves in Nasdaq 100 ETF (QQQ) precede corresponding moves in Russell 2000 ETF (IWM) by days to weeks, depending on the transmission channel and the depth of each market.
How are Nasdaq 100 ETF (QQQ) and Russell 2000 ETF (IWM) historically correlated?+
Long-run correlation between Nasdaq 100 ETF (QQQ) and Russell 2000 ETF (IWM) varies by regime. Peers in the same asset class are highly correlated in direction, with the spread reflecting factor tilts and rotation dynamics. The correlation is not stable: it shifts with macro conditions, and the periods when it breaks down are often the most informative moments in the Nasdaq 100 ETF (QQQ)-Russell 2000 ETF (IWM) relationship.
What macro conditions drive divergence between Nasdaq 100 ETF (QQQ) and Russell 2000 ETF (IWM)?+
Divergence between Nasdaq 100 ETF (QQQ) and Russell 2000 ETF (IWM) typically arises from index reconstitution, mega-cap earnings surprises, or liquidity differences between the peers. When one asset's idiosyncratic drivers dominate, the spread moves in ways that the common macro story does not predict, which is usually a signal to look more carefully at the specific drivers at work in Nasdaq 100 ETF (QQQ) or Russell 2000 ETF (IWM).
Is Nasdaq 100 ETF (QQQ) a hedge for Russell 2000 ETF (IWM)?+
Peers like Nasdaq 100 ETF (QQQ) and Russell 2000 ETF (IWM) do not hedge each other; both rise or fall with the shared asset class, and using the pair as a spread trade is different from using it as a hedge. Effective hedging requires matching the hedge to the specific risk being protected, and the Nasdaq 100 ETF (QQQ)-Russell 2000 ETF (IWM) pair is best stress-tested under scenarios the investor most worries about before being sized into a real portfolio.
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Data sourced from FRED, CoinGecko, CBOE, and other providers. This page is for informational purposes only and does not constitute financial advice. Past performance does not guarantee future results.