QQQ vs XLEI
Invesco QQQ Trust, Series 1 vs State Street Energy Select Sector SPDR Premium Income ETF
Quick Verdict
QQQ has a lower expense ratio. XLEI delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | XLEI | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $496.3B | $57M | |
| Dividend Yield | 0.44% | 18.44% | |
| Holdings | 108 | 6 | |
| YTD Return | +15.47% | +27.67% | |
| 1Y Return | +24.44% | +36.86% | |
| 3Y Return (annualized) | +25.47% | - | |
| 5Y Return (annualized) | +14.22% | - | |
| Volatility (annualized) | 30.6% | 14.1% | |
| Max Drawdown | -83.0% | -8.2% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jul 29, 2025 |
QQQ vs XLEI Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street Energy Select Sector SPDR Premium Income ETF (XLEI) is a ETF from State Street Investment Management. Over the past year QQQ returned +24.44% while XLEI returned +36.86%. Year to date, QQQ is up 15.47% versus a gain of 27.67% for XLEI.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 14.1% for XLEI. 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 -8.2% for XLEI. 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 -0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while XLEI 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 18.44% for XLEI.
Holdings Overlap
QQQ and XLEI share 0 holdings out of 103 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, QQQ or XLEI?
QQQ has an expense ratio of 0.18% while XLEI charges 0.35%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, QQQ or XLEI?
Over the past year QQQ returned +24.44% vs +36.86% for XLEI, so XLEI leads on 1-year performance. Over the longest common window we track (1 years), QQQ annualized +12.99% vs +35.23% for XLEI. Past performance does not guarantee future results.
Which is riskier, QQQ or XLEI?
QQQ has been the more volatile fund at 30.6% annualized versus 14.1% for XLEI. Worst drawdown: QQQ -83.0% vs XLEI -8.2%.
Should I hold both QQQ and XLEI?
QQQ and XLEI have a monthly-return correlation of -0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XLEI?
QQQ and XLEI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, QQQ or XLEI?
QQQ yields 0.44% while XLEI yields 18.44%, so XLEI currently pays the higher dividend yield.
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