QQQ vs XLFI
Invesco QQQ Trust, Series 1 vs State Street Financial Select Sector SPDR Premium Income ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | XLFI | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $496.3B | $8M | |
| Dividend Yield | 0.44% | 11.24% | |
| Holdings | 108 | 6 | |
| YTD Return | +16.64% | +5.40% | |
| 1Y Return | +27.27% | +10.81% | |
| 3Y Return (annualized) | +25.96% | - | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 9.3% | |
| Max Drawdown | -83.0% | -11.9% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jul 29, 2025 |
QQQ vs XLFI Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street Financial Select Sector SPDR Premium Income ETF (XLFI) is a ETF from State Street Investment Management. Over the past year QQQ returned +27.27% while XLFI returned +10.81%. Year to date, QQQ is up 16.64% versus a gain of 5.40% for XLFI.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 9.3% for XLFI. 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 -11.9% for XLFI. 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 0.19. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while XLFI 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 11.24% for XLFI.
Holdings Overlap
QQQ and XLFI 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 XLFI?
QQQ has an expense ratio of 0.18% while XLFI 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 XLFI?
Over the past year QQQ returned +27.27% vs +10.81% for XLFI, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), QQQ annualized +13.03% vs +10.74% for XLFI. Past performance does not guarantee future results.
Which is riskier, QQQ or XLFI?
QQQ has been the more volatile fund at 30.6% annualized versus 9.3% for XLFI. Worst drawdown: QQQ -83.0% vs XLFI -11.9%.
Should I hold both QQQ and XLFI?
QQQ and XLFI have a monthly-return correlation of 0.19, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XLFI?
QQQ and XLFI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, QQQ or XLFI?
QQQ yields 0.44% while XLFI yields 11.24%, so XLFI currently pays the higher dividend yield.
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