QQQ vs SPXD
Invesco QQQ Trust, Series 1 vs Xtrackers S&P 500 Diversified Sector Weight ETF
Quick Verdict
SPXD has a lower expense ratio. QQQ delivered stronger 1-year returns. SPXD offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | QQQ | SPXD | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.09% | |
| AUM | $496.3B | $7M | |
| Dividend Yield | 0.44% | 1.38% | |
| Holdings | 108 | 505 | |
| YTD Return | +16.64% | +15.81% | |
| 1Y Return | +27.27% | +21.89% | |
| 3Y Return (annualized) | +25.96% | - | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 9.7% | |
| Max Drawdown | -83.0% | -7.5% | |
| Fund Family | Invesco (US) | Xtrackers ETFs | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jul 23, 2025 |
QQQ vs SPXD Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Xtrackers S&P 500 Diversified Sector Weight ETF (SPXD) is a ETF from Xtrackers ETFs. Over the past year QQQ returned +27.27% while SPXD returned +21.89%. Year to date, QQQ is up 16.64% versus a gain of 15.81% for SPXD.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 9.7% for SPXD. 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 -83.0% for QQQ and -7.5% for SPXD. 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SPXD charges 0.09%. On a $10,000 position that is $18 vs $9 annually, a gap of $9 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.38% for SPXD.
Holdings Overlap
QQQ and SPXD share 86 holdings out of 520 unique holdings combined, representing a 17.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or SPXD?
QQQ has an expense ratio of 0.18% while SPXD charges 0.09%. SPXD is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, QQQ or SPXD?
Over the past year QQQ returned +27.27% vs +21.89% for SPXD, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), QQQ annualized +13.03% vs +20.52% for SPXD. Past performance does not guarantee future results.
Which is riskier, QQQ or SPXD?
QQQ has been the more volatile fund at 30.6% annualized versus 9.7% for SPXD. Worst drawdown: QQQ -83.0% vs SPXD -7.5%.
Should I hold both QQQ and SPXD?
QQQ and SPXD have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SPXD?
QQQ and SPXD share 86 common holdings with a 17.2% weight overlap. Combined, they hold 520 unique securities.
Which pays a higher dividend, QQQ or SPXD?
QQQ yields 0.44% while SPXD yields 1.38%, so SPXD currently pays the higher dividend yield.
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