QQQ vs XLRE
Invesco QQQ Trust, Series 1 vs State Street Real Estate Select Sector SPDR ETF
Quick Verdict
XLRE has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | XLRE | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.08% | |
| AUM | $496.3B | $8.7B | |
| Dividend Yield | 0.44% | 3.12% | |
| Holdings | 108 | 34 | |
| YTD Return | +17.89% | +12.32% | |
| 1Y Return | +26.35% | +9.50% | |
| 3Y Return (annualized) | +26.02% | +10.44% | |
| 5Y Return (annualized) | +14.59% | +2.42% | |
| Volatility (annualized) | 30.6% | 16.9% | |
| Max Drawdown | -83.0% | -39.3% | |
| Fund Family | Invesco (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Oct 7, 2015 |
QQQ vs XLRE Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street Real Estate Select Sector SPDR ETF (XLRE) is a ETF from SPDR State Street Global Advisors. Over the past year QQQ returned +26.35% while XLRE returned +9.50%. Year to date, QQQ is up 17.89% versus a gain of 12.32% for XLRE.
Over three years, QQQ compounded at +26.02% per year against +10.44% for XLRE; over five years the annualized figures are +14.59% and +2.42% respectively. Across the full 11-year window we track, QQQ has the edge at +13.07% annualized vs +5.42%. 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 16.9% for XLRE. 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 -39.3% for XLRE. 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while XLRE 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 3.12% for XLRE.
Holdings Overlap
QQQ and XLRE share 0 holdings out of 134 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 XLRE?
QQQ has an expense ratio of 0.18% while XLRE charges 0.08%. XLRE is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, QQQ or XLRE?
Over the past year QQQ returned +26.35% vs +9.50% for XLRE, so QQQ leads on 1-year performance. Over the longest common window we track (11 years), QQQ annualized +13.07% vs +5.42% for XLRE. Past performance does not guarantee future results.
Which is riskier, QQQ or XLRE?
QQQ has been the more volatile fund at 30.6% annualized versus 16.9% for XLRE. Worst drawdown: QQQ -83.0% vs XLRE -39.3%.
Should I hold both QQQ and XLRE?
QQQ and XLRE have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XLRE?
QQQ and XLRE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 134 unique securities.
Which pays a higher dividend, QQQ or XLRE?
QQQ yields 0.44% while XLRE yields 3.12%, so XLRE currently pays the higher dividend yield.
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