QQQ vs XAR
Invesco QQQ Trust, Series 1 vs State Street SPDR S&P Aerospace & Defense ETF
Which is better, QQQ or XAR?
Large Cap Growth against Mid Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y and the full window, XAR over 3Y and 5Y. XAR is less concentrated, with 30.8% of the fund in its ten largest positions against 46.9%.
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 | QQQ | XAR |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.35% |
| AUM | $437.3B | $5.0B |
| Dividend Yield | 0.43% | 0.18% |
| Holdings | 208 | 102 |
| YTD Return | +7.37%Best | -10.43% |
| 1Y Return | +7.77%Best | -3.68% |
| 3Y Return (annualized) | +21.44% | +23.47%Best |
| 5Y Return (annualized) | +11.19% | +12.89%Best |
| Volatility (annualized) | 17.6%Best | 20.4% |
| Max Drawdown | -35.1%Best | -46.7% |
| $10,000 over 5 years | $16,995 | $18,335Best |
| Top 10 Weight | 46.9% | 30.8%Best |
| Fund Family | Invesco (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Growth | Mid Cap Growth |
| Inception | Mar 10, 1999 | Sep 28, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2011 to Nov 6, 2026 (15.1 years).
QQQ vs XAR 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 covers the 15.1 years both funds cover.
QQQ vs XAR Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and State Street SPDR S&P Aerospace & Defense ETF (XAR) is an ETF from State Street Investment Management. Over the past year QQQ returned +7.77% while XAR returned -3.68%. Year to date, QQQ is up 7.37% versus a loss of 10.43% for XAR.
Over three years, QQQ compounded at +21.44% per year against +23.47% for XAR; over five years the annualized figures are +11.19% and +12.89% respectively. Across the full 15-year window we track, QQQ has the edge at +18.26% annualized vs +15.79%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XAR has been the more volatile fund, with annualized monthly volatility of 20.4% compared with 17.6% 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 -35.1% for QQQ and -46.7% for XAR. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.62. They move together some of the time, and apart the rest.
Fees and Cost Over Time
QQQ charges 0.18% per year while XAR charges 0.35%. On a $10,000 position that is $18 vs $35 annually, a gap of $17 per year that compounds over a long holding period. On income, QQQ currently yields 0.43% against 0.18% for XAR.
Holdings Overlap
0.5% of QQQ's money is in holdings XAR also owns. 8.8% of XAR's money is in holdings QQQ also owns.
XAR and QQQ share little of their money.
3 positions in common, counted across the 101 positions we hold weights for in QQQ and 51 in XAR, against full books of 208 and 102.
What only one of them owns
Our book lists 48 positions for XAR that do not appear in our book for QQQ (91.2% of the fund), and 91 for QQQ that do not appear in XAR (96.7%).
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 QQQ and XAR 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, QQQ or XAR?
QQQ has an expense ratio of 0.18% while XAR charges 0.35%. QQQ is the cheaper option, by $17 a year on a $10,000 investment.
Which performed better, QQQ or XAR?
Over the past year QQQ returned +7.77% vs -3.68% for XAR, so QQQ leads on 1-year performance. Over the longest common window we track (15 years), QQQ annualized +18.26% vs +15.79% for XAR. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or XAR?
XAR has been the more volatile fund at 20.4% annualized versus 17.6% for QQQ. Worst drawdown: QQQ -35.1% vs XAR -46.7%.
Should I hold both QQQ and XAR?
QQQ and XAR have a monthly-return correlation of 0.62, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QQQ and XAR?
8.8% of XAR's money is in holdings QQQ also owns. 8.8% of XAR's is in holdings QQQ also owns. They hold 3 positions in common, counted across the 101 positions we hold weights for in QQQ and 51 in XAR.
Which pays a higher dividend, QQQ or XAR?
QQQ yields 0.43% while XAR yields 0.18%, so QQQ currently pays the higher dividend yield.
Is XAR better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y and the full window, XAR over 3Y and 5Y. XAR is less concentrated, with 30.8% of the fund in its ten largest positions against 46.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.