KBE vs QQQ
State Street SPDR S&P Bank ETF vs Invesco QQQ Trust, Series 1
Which is better, KBE or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. KBE is less concentrated, with 10.8% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | KBE | QQQ |
|---|---|---|
| Expense Ratio | 0.35% | 0.18%Best |
| AUM | $1.6B | $486.1B |
| Dividend Yield | 2.11% | 0.44% |
| Holdings | 105 | 107 |
| YTD Return | +13.08% | +17.44%Best |
| 1Y Return | +14.53% | +24.69%Best |
| 3Y Return (annualized) | +24.67% | +24.76%Best |
| 5Y Return (annualized) | +8.96% | +14.22%Best |
| Volatility (annualized) | 26.6% | 18.5%Best |
| Max Drawdown | -84.6% | -53.5%Best |
| $10,000 over 5 years | $15,358 | $19,441Best |
| Top 10 Weight | 10.8%Best | 46.5% |
| Fund Family | State Street Investment Management | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Nov 8, 2005 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Nov 15, 2005 to Sep 8, 2026 (20.8 years).
KBE vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
KBE vs QQQ Performance
State Street SPDR S&P Bank ETF (KBE) is an ETF from State Street Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year KBE returned +14.53% while QQQ returned +24.69%. Year to date, KBE is up 13.08% versus a gain of 17.44% for QQQ.
Over three years, KBE compounded at +24.67% per year against +24.76% for QQQ; over five years the annualized figures are +8.96% and +14.22% respectively. Across the full 21-year window we track, QQQ has the edge at +14.99% annualized vs +2.10%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KBE has been the more volatile fund, with annualized monthly volatility of 26.6% compared with 18.5% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -84.6% for KBE and -53.5% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.50. They move together some of the time, and apart the rest.
Fees and Cost Over Time
KBE charges 0.35% per year while QQQ charges 0.18%. On a $10,000 position that is $35 vs $18 annually, a gap of $17 per year that compounds over a long holding period. On income, KBE currently yields 2.11% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 104 holdings in KBE and 102 in QQQ, totalling 99.9% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 104 positions we hold weights for in KBE and 102 in QQQ, against full books of 105 and 107.
What only one of them owns
Our book lists 94 positions for QQQ that do not appear in our book for KBE (96.8% of the fund), and 100 for KBE that do not appear in QQQ (96.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of KBE and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, KBE or QQQ?
KBE has an expense ratio of 0.35% while QQQ charges 0.18%. QQQ is the cheaper option, by $17 a year on a $10,000 investment.
Which performed better, KBE or QQQ?
Over the past year KBE returned +14.53% vs +24.69% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), KBE annualized +2.10% vs +14.99% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, KBE or QQQ?
KBE has been the more volatile fund at 26.6% annualized versus 18.5% for QQQ. Worst drawdown: KBE -84.6% vs QQQ -53.5%.
Should I hold both KBE and QQQ?
KBE and QQQ have a monthly-return correlation of 0.50, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, KBE or QQQ?
KBE yields 2.11% while QQQ yields 0.44%, so KBE currently pays the higher dividend yield.
Is QQQ better than KBE?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. KBE is less concentrated, with 10.8% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.