QQQ vs XLG
Invesco QQQ Trust, Series 1 vs Invesco S&P 500 Top 50 ETF
Which is better, QQQ or XLG?
Large Cap Growth against Large Cap Blend.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 60.3%.
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 | XLG |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.20% |
| AUM | $483.5B | $11.0B |
| Dividend Yield | 0.44% | 0.64% |
| Holdings | 107 | 53 |
| YTD Return | +16.87%Best | +6.87% |
| 1Y Return | +22.98%Best | +12.25% |
| 3Y Return (annualized) | +24.98%Best | +21.91% |
| 5Y Return (annualized) | +14.39%Best | +13.87% |
| Volatility (annualized) | 18.4% | 14.9%Best |
| Max Drawdown | -53.5%Best | -53.8% |
| $10,000 over 5 years | $19,586Best | $19,145 |
| Top 10 Weight | 46.5%Best | 60.3% |
| Fund Family | Invesco (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Mar 10, 1999 | May 4, 2005 |
Volatility and max drawdown are measured over the window both funds cover: May 10, 2005 to Sep 11, 2026 (21.3 years).
QQQ vs XLG 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 21.3 years both funds cover.
QQQ vs XLG Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Invesco S&P 500 Top 50 ETF (XLG) is an ETF from Invesco (US). Over the past year QQQ returned +22.98% while XLG returned +12.25%. Year to date, QQQ is up 16.87% versus a gain of 6.87% for XLG.
Over three years, QQQ compounded at +24.98% per year against +21.91% for XLG; over five years the annualized figures are +14.39% and +13.87% respectively. Across the full 21-year window we track, QQQ has the edge at +15.24% annualized vs +9.77%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.4% compared with 14.9% for XLG. 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 -53.5% for QQQ and -53.8% for XLG. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QQQ charges 0.18% per year while XLG charges 0.20%. On a $10,000 position that is $18 vs $20 annually, a gap of $2 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.64% for XLG.
Holdings Overlap
66.3% of QQQ's money is in holdings XLG also owns. 71.3% of XLG's money is in holdings QQQ also owns.
Most of XLG is already inside QQQ. Owning both mostly buys the same companies twice.
24 positions in common, counted across the 102 positions we hold weights for in QQQ and 52 in XLG, against full books of 107 and 53.
What only one of them owns
Our book lists 27 positions for XLG that do not appear in our book for QQQ (26.9% of the fund), and 72 for QQQ that do not appear in XLG (31.2%).
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 XLG | Difference |
|---|---|---|---|
| NVDANvidia Corp | 8.44% | 12.89% | 4.45% |
| AAPLApple, Inc | 7.27% | 11.22% | 3.95% |
| MSFTMicrosoft Corp | 5.76% | 9.10% | 3.34% |
| AMZNAmazon.Com Inc | 4.67% | 6.13% | 1.46% |
| GOOGLAlphabet Inc,class A | 3.36% | 4.80% | 1.44% |
| AVGOBroadcom Inc | 3.16% | 4.23% | 1.07% |
| MUMicron Technology, Inc. | 4.43% | 2.61% | 1.82% |
| GOOGAlphabet Inc | 3.13% | 3.82% | 0.69% |
| METAMeta Platforms Inc | 2.78% | 3.03% | 0.25% |
| TSLATesla Inc | 2.56% | 2.50% | 0.06% |
71.3% of XLG is already inside QQQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or XLG?
QQQ has an expense ratio of 0.18% while XLG charges 0.20%. QQQ is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, QQQ or XLG?
Over the past year QQQ returned +22.98% vs +12.25% for XLG, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), QQQ annualized +15.24% vs +9.77% for XLG. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or XLG?
QQQ has been the more volatile fund at 18.4% annualized versus 14.9% for XLG. Worst drawdown: QQQ -53.5% vs XLG -53.8%.
Should I hold both QQQ and XLG?
QQQ and XLG have a monthly-return correlation of 0.92, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between QQQ and XLG?
71.3% of XLG's money is in holdings QQQ also owns. 71.3% of XLG's is in holdings QQQ also owns. They hold 24 positions in common, counted across the 102 positions we hold weights for in QQQ and 52 in XLG.
Which pays a higher dividend, QQQ or XLG?
QQQ yields 0.44% while XLG yields 0.64%, so XLG currently pays the higher dividend yield.
Is XLG better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 60.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.