QQQ vs XHS
Invesco QQQ Trust, Series 1 vs State Street SPDR S&P Health Care Services ETF
Which is better, QQQ or XHS?
Large Cap Growth against Mid Cap Blend.
QQQ has a lower expense ratio. QQQ led over 3Y, 5Y and the full window, XHS over 1Y. XHS is less concentrated, with 23.2% 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 | QQQ | XHS |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.35% |
| AUM | $483.5B | $214M |
| Dividend Yield | 0.44% | 0.20% |
| Holdings | 107 | 61 |
| YTD Return | +17.21% | +28.09%Best |
| 1Y Return | +22.10% | +40.65%Best |
| 3Y Return (annualized) | +25.27%Best | +17.86% |
| 5Y Return (annualized) | +14.60%Best | +4.87% |
| Volatility (annualized) | 17.5%Best | 19.4% |
| Max Drawdown | -35.1%Best | -39.4% |
| $10,000 over 5 years | $19,766Best | $12,684 |
| Top 10 Weight | 46.5% | 23.2%Best |
| Fund Family | Invesco (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Growth | Mid Cap Blend |
| Inception | Mar 10, 1999 | Sep 28, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2011 to Sep 17, 2026 (15 years).
QQQ vs XHS 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 years both funds cover.
QQQ vs XHS Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and State Street SPDR S&P Health Care Services ETF (XHS) is an ETF from State Street Investment Management. Over the past year QQQ returned +22.10% while XHS returned +40.65%. Year to date, QQQ is up 17.21% versus a gain of 28.09% for XHS.
Over three years, QQQ compounded at +25.27% per year against +17.86% for XHS; over five years the annualized figures are +14.60% and +4.87% respectively. Across the full 15-year window we track, QQQ has the edge at +19.13% annualized vs +12.22%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XHS has been the more volatile fund, with annualized monthly volatility of 19.4% compared with 17.5% 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 -35.1% for QQQ and -39.4% for XHS. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.60. They move together some of the time, and apart the rest.
Fees and Cost Over Time
QQQ charges 0.18% per year while XHS 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 0.44% against 0.20% for XHS.
Holdings Overlap
We hold position weights for 102 holdings in QQQ and 60 in XHS, totalling 99.9% and 100.0% 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 102 positions we hold weights for in QQQ and 60 in XHS, against full books of 107 and 61.
What only one of them owns
Measured across the 102 and 60 positions we hold weights for.
QQQ holds 96 positions XHS does not, 97.5% of the fund.
Largest: NVDA 8.44%, AAPL 7.27%, MSFT 5.76%, AMZN 4.67%, MU 4.43%
You are not choosing between two funds in isolation.
Whichever of QQQ and XHS 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 XHS?
QQQ has an expense ratio of 0.18% while XHS charges 0.35%. QQQ is the cheaper option, by $17 a year on a $10,000 investment.
Which performed better, QQQ or XHS?
Over the past year QQQ returned +22.10% vs +40.65% for XHS, so XHS leads on 1-year performance. Over the longest common window we track (15 years), QQQ annualized +19.13% vs +12.22% for XHS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or XHS?
XHS has been the more volatile fund at 19.4% annualized versus 17.5% for QQQ. Worst drawdown: QQQ -35.1% vs XHS -39.4%.
Should I hold both QQQ and XHS?
QQQ and XHS have a monthly-return correlation of 0.60, 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, QQQ or XHS?
QQQ yields 0.44% while XHS yields 0.20%, so QQQ currently pays the higher dividend yield.
Is XHS better than QQQ?
QQQ has a lower expense ratio. QQQ led over 3Y, 5Y and the full window, XHS over 1Y. XHS is less concentrated, with 23.2% 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.