QQQ vs XLU
Invesco QQQ Trust, Series 1 vs State Street Utilities Select Sector SPDR ETF
Which is better, QQQ or XLU?
Large Cap Growth against Large Cap Value.
XLU has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 47.2% of the fund in its ten largest positions against 58.7%.
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 | XLU |
|---|---|---|
| Expense Ratio | 0.18% | 0.08%Best |
| AUM | $498.6B | $21.3B |
| Dividend Yield | 0.42% | 2.83% |
| Holdings | 321 | 68 |
| YTD Return | +21.44%Best | -6.19% |
| 1Y Return | +23.58%Best | -7.30% |
| 3Y Return (annualized) | +27.86%Best | +15.61% |
| 5Y Return (annualized) | +16.25%Best | +7.62% |
| Volatility (annualized) | 30.5% | 15.1%Best |
| Max Drawdown | -83.0% | -55.7%Best |
| $10,000 over 5 years | $21,231Best | $14,437 |
| Top 10 Weight | 47.2%Best | 58.7% |
| 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 Oct 1, 2026 (27.6 years).
QQQ vs XLU 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 27.6 years both funds cover.
QQQ vs XLU Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and State Street Utilities Select Sector SPDR ETF (XLU) is an ETF from SPDR State Street Global Advisors. Over the past year QQQ returned +23.58% while XLU returned -7.30%. Year to date, QQQ is up 21.44% versus a loss of 6.19% for XLU.
Over three years, QQQ compounded at +27.86% per year against +15.61% for XLU; over five years the annualized figures are +16.25% and +7.62% respectively. Across the full 28-year window we track, QQQ has the edge at +13.14% annualized vs +4.47%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.5% compared with 15.1% for XLU. 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 -55.7% for XLU. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.24. They move largely independently of each other.
Fees and Cost Over Time
QQQ charges 0.18% per year while XLU 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 0.42% against 2.83% for XLU.
Holdings Overlap
1.2% of QQQ's money is in holdings XLU also owns. 18.9% of XLU's money is in holdings QQQ also owns.
XLU and QQQ share little of their money.
4 positions in common, counted across the 102 positions we hold weights for in QQQ and 32 in XLU, against full books of 321 and 68.
What only one of them owns
Our book lists 28 positions for XLU that do not appear in our book for QQQ (80.7% of the fund), and 92 for QQQ that do not appear in XLU (96.6%).
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.
You are not choosing between two funds in isolation.
Whichever of QQQ and XLU you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or XLU?
QQQ has an expense ratio of 0.18% while XLU charges 0.08%. XLU is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, QQQ or XLU?
Over the past year QQQ returned +23.58% vs -7.30% for XLU, so QQQ leads on 1-year performance. Over the longest common window we track (28 years), QQQ annualized +13.14% vs +4.47% for XLU. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or XLU?
QQQ has been the more volatile fund at 30.5% annualized versus 15.1% for XLU. Worst drawdown: QQQ -83.0% vs XLU -55.7%.
Should I hold both QQQ and XLU?
QQQ and XLU have a monthly-return correlation of 0.24, 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 XLU?
18.9% of XLU's money is in holdings QQQ also owns. 18.9% of XLU's is in holdings QQQ also owns. They hold 4 positions in common, counted across the 102 positions we hold weights for in QQQ and 32 in XLU.
Which pays a higher dividend, QQQ or XLU?
QQQ yields 0.42% while XLU yields 2.83%, so XLU currently pays the higher dividend yield.
Is XLU better than QQQ?
XLU has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 47.2% of the fund in its ten largest positions against 58.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.