KRE vs QQQ
State Street SPDR S&P Regional Banking ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. KRE delivered stronger 1-year returns. KRE offers more diversification with 160 holdings.
Side-by-Side Comparison
| Metric | KRE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.18% | |
| AUM | $4.3B | $455.8B | |
| Dividend Yield | 2.14% | 0.41% | |
| Holdings | 150 | 108 | |
| YTD Return | +19.99% | +18.31% | |
| 1Y Return | +28.79% | +25.37% | |
| 3Y Return (annualized) | +21.32% | +25.79% | |
| 5Y Return (annualized) | +5.74% | +15.20% | |
| Volatility (annualized) | 26.4% | 30.6% | |
| Max Drawdown | -71.2% | -83.0% | |
| Fund Family | State Street Investment Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 19, 2006 | Mar 10, 1999 |
KRE vs QQQ Performance
State Street SPDR S&P Regional Banking ETF (KRE) is a ETF from State Street Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KRE returned +28.79% while QQQ returned +25.37%. Year to date, KRE is up 19.99% versus a gain of 18.31% for QQQ.
Over three years, KRE compounded at +21.32% per year against +25.79% for QQQ; over five years the annualized figures are +5.74% and +15.20% respectively. Across the full 20-year window we track, QQQ has the edge at +13.10% annualized vs +3.13%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 26.4% for KRE. 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 -71.2% for KRE and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KRE 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, KRE currently yields 2.14% against 0.41% for QQQ.
Holdings Overlap
KRE and QQQ share 0 holdings out of 263 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, KRE or QQQ?
KRE has an expense ratio of 0.35% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, KRE or QQQ?
Over the past year KRE returned +28.79% vs +25.37% for QQQ, so KRE leads on 1-year performance. Over the longest common window we track (20 years), KRE annualized +3.13% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, KRE or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 26.4% for KRE. Worst drawdown: KRE -71.2% vs QQQ -83.0%.
Should I hold both KRE and QQQ?
KRE and QQQ have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KRE and QQQ?
KRE and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 263 unique securities.
Which pays a higher dividend, KRE or QQQ?
KRE yields 2.14% while QQQ yields 0.41%, so KRE currently pays the higher dividend yield.
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