QQQ vs XLP
Invesco QQQ Trust, Series 1 vs State Street Consumer Staples Select Sector SPDR ETF
Which is better, QQQ or XLP?
Large Cap Growth against Large Cap Value.
XLP has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 62.1%.
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 | XLP |
|---|---|---|
| Expense Ratio | 0.18% | 0.08%Best |
| AUM | $483.5B | $14.5B |
| Dividend Yield | 0.44% | 2.59% |
| Holdings | 107 | 38 |
| YTD Return | +16.87%Best | +8.68% |
| 1Y Return | +22.98%Best | +6.33% |
| 3Y Return (annualized) | +24.98%Best | +8.06% |
| 5Y Return (annualized) | +14.39%Best | +5.72% |
| Volatility (annualized) | 30.6% | 12.5%Best |
| Max Drawdown | -83.0% | -37.8%Best |
| $10,000 over 5 years | $19,586Best | $13,206 |
| Top 10 Weight | 46.5%Best | 62.1% |
| 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 Sep 11, 2026 (27.5 years).
QQQ vs XLP 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 XLP Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and State Street Consumer Staples Select Sector SPDR ETF (XLP) is an ETF from SPDR State Street Global Advisors. Over the past year QQQ returned +22.98% while XLP returned +6.33%. Year to date, QQQ is up 16.87% versus a gain of 8.68% for XLP.
Over three years, QQQ compounded at +24.98% per year against +8.06% for XLP; over five years the annualized figures are +14.39% and +5.72% respectively. Across the full 28-year window we track, QQQ has the edge at +13.01% annualized vs +4.74%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 12.5% for XLP. 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 -37.8% for XLP. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.28. They move largely independently of each other.
Fees and Cost Over Time
QQQ charges 0.18% per year while XLP 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 0.44% against 2.59% for XLP.
Holdings Overlap
6.2% of QQQ's money is in holdings XLP also owns. 36.2% of XLP's money is in holdings QQQ also owns.
The two portfolios partly overlap.
7 positions in common, counted across the 102 positions we hold weights for in QQQ and 35 in XLP, against full books of 107 and 38.
What only one of them owns
Measured across the 102 and 35 positions we hold weights for.
QQQ holds 88 positions XLP does not, 90.9% of the fund.
Largest: NVDA 8.44%, AAPL 7.27%, MSFT 5.76%, AMZN 4.67%, MU 4.43%
Top Shared Holdings
| Stock | Weight in QQQ | Weight in XLP | Difference |
|---|---|---|---|
| WMTWalmart, Inc. | 2.41% | 10.45% | 8.04% |
| COSTCostco Wholesale Corp. | 1.84% | 8.96% | 7.12% |
| PEPPepsico Inc. | 0.83% | 4.35% | 3.52% |
| MDLZMondelez International Inc. Class A | 0.35% | 4.40% | 4.05% |
| MNSTMonster Beverage Corp. | 0.41% | 4.10% | 3.69% |
| KDPKeurig Dr Pepper Inc. | 0.18% | 2.59% | 2.41% |
| KHCKraft Heinz Co. | 0.13% | 1.37% | 1.24% |
36.2% of XLP 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 XLP?
QQQ has an expense ratio of 0.18% while XLP charges 0.08%. XLP is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, QQQ or XLP?
Over the past year QQQ returned +22.98% vs +6.33% for XLP, so QQQ leads on 1-year performance. Over the longest common window we track (28 years), QQQ annualized +13.01% vs +4.74% for XLP. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or XLP?
QQQ has been the more volatile fund at 30.6% annualized versus 12.5% for XLP. Worst drawdown: QQQ -83.0% vs XLP -37.8%.
Should I hold both QQQ and XLP?
QQQ and XLP have a monthly-return correlation of 0.28, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QQQ and XLP?
36.2% of XLP's money is in holdings QQQ also owns. 36.2% of XLP's is in holdings QQQ also owns. They hold 7 positions in common, counted across the 102 positions we hold weights for in QQQ and 35 in XLP.
Which pays a higher dividend, QQQ or XLP?
QQQ yields 0.44% while XLP yields 2.59%, so XLP currently pays the higher dividend yield.
Is XLP better than QQQ?
XLP has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 62.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.