QQQ vs XLII
Invesco QQQ Trust, Series 1 vs State Street Industrial 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 | XLII | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $496.3B | $11M | |
| Dividend Yield | 0.44% | 12.08% | |
| Holdings | 108 | 5 | |
| YTD Return | +16.30% | +12.30% | |
| 1Y Return | +24.83% | +19.27% | |
| 3Y Return (annualized) | +25.48% | - | |
| 5Y Return (annualized) | +14.50% | - | |
| Volatility (annualized) | 30.6% | 11.5% | |
| Max Drawdown | -83.0% | -10.1% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jul 29, 2025 |
QQQ vs XLII Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street Industrial Select Sector SPDR Premium Income ETF (XLII) is a ETF from State Street Investment Management. Over the past year QQQ returned +24.83% while XLII returned +19.27%. Year to date, QQQ is up 16.30% versus a gain of 12.30% for XLII.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 11.5% for XLII. 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 -10.1% for XLII. 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while XLII 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 12.08% for XLII.
Holdings Overlap
QQQ and XLII share 0 holdings out of 104 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 XLII?
QQQ has an expense ratio of 0.18% while XLII 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 XLII?
Over the past year QQQ returned +24.83% vs +19.27% for XLII, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), QQQ annualized +13.01% vs +19.25% for XLII. Past performance does not guarantee future results.
Which is riskier, QQQ or XLII?
QQQ has been the more volatile fund at 30.6% annualized versus 11.5% for XLII. Worst drawdown: QQQ -83.0% vs XLII -10.1%.
Should I hold both QQQ and XLII?
QQQ and XLII have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XLII?
QQQ and XLII share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, QQQ or XLII?
QQQ yields 0.44% while XLII yields 12.08%, so XLII currently pays the higher dividend yield.
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