QQQ vs XLF
Invesco QQQ Trust, Series 1 vs State Street Financial Select Sector SPDR ETF
Which is better, QQQ or XLF?
Large Cap Growth against Large Cap Value.
XLF has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 47.2% of the fund in its ten largest positions against 57.3%.
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 | XLF |
|---|---|---|
| Expense Ratio | 0.18% | 0.08%Best |
| AUM | $498.6B | $51.9B |
| Dividend Yield | 0.42% | 1.40% |
| Holdings | 321 | 160 |
| YTD Return | +22.09%Best | +1.44% |
| 1Y Return | +24.51%Best | +6.19% |
| 3Y Return (annualized) | +27.61%Best | +20.21% |
| 5Y Return (annualized) | +16.57%Best | +9.27% |
| Volatility (annualized) | 30.5% | 21.4%Best |
| Max Drawdown | -83.0%Best | -83.8% |
| $10,000 over 5 years | $21,525Best | $15,578 |
| Top 10 Weight | 47.2%Best | 57.3% |
| Fund Family | Invesco (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Value |
| Inception | Mar 10, 1999 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Mar 10, 1999 to Oct 12, 2026 (27.6 years).
QQQ vs XLF 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
QQQ vs XLF Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and State Street Financial Select Sector SPDR ETF (XLF) is an ETF from SPDR State Street Global Advisors. Over the past year QQQ returned +24.51% while XLF returned +6.19%. Year to date, QQQ is up 22.09% versus a gain of 1.44% for XLF.
Over three years, QQQ compounded at +27.61% per year against +20.21% for XLF; over five years the annualized figures are +16.57% and +9.27% respectively. Across the full 28-year window we track, QQQ has the edge at +13.15% annualized vs +3.15%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.5% compared with 21.4% for XLF. 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 -83.8% for XLF. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.49. They move together some of the time, and apart the rest.
Fees and Cost Over Time
QQQ charges 0.18% per year while XLF 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 0.42% against 1.40% for XLF.
Holdings Overlap
0.2% of QQQ's money is in holdings XLF also owns. 0.6% of XLF's money is in holdings QQQ also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 102 positions we hold weights for in QQQ and 77 in XLF, against full books of 321 and 160.
What only one of them owns
Our book lists 75 positions for XLF that do not appear in our book for QQQ (98.9% of the fund), and 95 for QQQ that do not appear in XLF (97.5%).
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 XLF | Difference |
|---|---|---|---|
| PYPLPaypay Holdings, Inc. | 0.21% | 0.59% | 0.38% |
You are not choosing between two funds in isolation.
Whichever of QQQ and XLF 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 XLF?
QQQ has an expense ratio of 0.18% while XLF charges 0.08%. XLF is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, QQQ or XLF?
Over the past year QQQ returned +24.51% vs +6.19% for XLF, so QQQ leads on 1-year performance. Over the longest common window we track (28 years), QQQ annualized +13.15% vs +3.15% for XLF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or XLF?
QQQ has been the more volatile fund at 30.5% annualized versus 21.4% for XLF. Worst drawdown: QQQ -83.0% vs XLF -83.8%.
Should I hold both QQQ and XLF?
QQQ and XLF have a monthly-return correlation of 0.49, 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 XLF?
QQQ yields 0.42% while XLF yields 1.40%, so XLF currently pays the higher dividend yield.
Is XLF better than QQQ?
XLF has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 47.2% of the fund in its ten largest positions against 57.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.