QQQ vs XLB
Invesco QQQ Trust, Series 1 vs State Street Materials Select Sector SPDR ETF
Which is better, QQQ or XLB?
Large Cap Growth against Large Cap Blend.
XLB has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 58.6%.
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 | XLB |
|---|---|---|
| Expense Ratio | 0.18% | 0.08%Best |
| AUM | $486.1B | $8.7B |
| Dividend Yield | 0.44% | 1.68% |
| Holdings | 107 | 29 |
| YTD Return | +17.44%Best | +13.54% |
| 1Y Return | +24.69%Best | +14.92% |
| 3Y Return (annualized) | +24.76%Best | +10.26% |
| 5Y Return (annualized) | +14.22%Best | +6.43% |
| Volatility (annualized) | 30.6% | 20.7%Best |
| Max Drawdown | -83.0% | -60.7%Best |
| $10,000 over 5 years | $19,441Best | $13,656 |
| Top 10 Weight | 46.5%Best | 58.6% |
| Fund Family | Invesco (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Mar 10, 1999 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Mar 10, 1999 to Sep 8, 2026 (27.5 years).
QQQ vs XLB 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 27.5 years both funds cover.
QQQ vs XLB Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and State Street Materials Select Sector SPDR ETF (XLB) is an ETF from SPDR State Street Global Advisors. Over the past year QQQ returned +24.69% while XLB returned +14.92%. Year to date, QQQ is up 17.44% versus a gain of 13.54% for XLB.
Over three years, QQQ compounded at +24.76% per year against +10.26% for XLB; over five years the annualized figures are +14.22% and +6.43% respectively. Across the full 28-year window we track, QQQ has the edge at +13.04% annualized vs +6.24%.
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 20.7% for XLB. 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 -60.7% for XLB. 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
QQQ charges 0.18% per year while XLB charges 0.08%. On a $10,000 position that is $18 vs $8 annually, a gap of $10 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.68% for XLB.
Holdings Overlap
1.0% of QQQ's money is in holdings XLB also owns. 13.1% of XLB's money is in holdings QQQ also owns.
XLB and QQQ share little of their money.
1 positions in common, counted across the 102 positions we hold weights for in QQQ and 26 in XLB, against full books of 107 and 29.
What only one of them owns
Our book lists 22 positions for XLB that do not appear in our book for QQQ (74.7% of the fund), and 93 for QQQ that do not appear in XLB (95.8%).
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.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in XLB | Difference |
|---|---|---|---|
| LINLinde Plc Ordinary Shares | 1.00% | 13.11% | 12.11% |
You are not choosing between two funds in isolation.
Whichever of QQQ and XLB 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 XLB?
QQQ has an expense ratio of 0.18% while XLB charges 0.08%. XLB is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, QQQ or XLB?
Over the past year QQQ returned +24.69% vs +14.92% for XLB, so QQQ leads on 1-year performance. Over the longest common window we track (28 years), QQQ annualized +13.04% vs +6.24% for XLB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or XLB?
QQQ has been the more volatile fund at 30.6% annualized versus 20.7% for XLB. Worst drawdown: QQQ -83.0% vs XLB -60.7%.
Should I hold both QQQ and XLB?
QQQ and XLB 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.
What is the holdings overlap between QQQ and XLB?
13.1% of XLB's money is in holdings QQQ also owns. 13.1% of XLB's is in holdings QQQ also owns. They hold 1 positions in common, counted across the 102 positions we hold weights for in QQQ and 26 in XLB.
Which pays a higher dividend, QQQ or XLB?
QQQ yields 0.44% while XLB yields 1.68%, so XLB currently pays the higher dividend yield.
Is XLB better than QQQ?
XLB has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 58.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.