QQQ vs XLUI
Invesco QQQ Trust, Series 1 vs State Street Utilities 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 | XLUI | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $496.3B | $27M | |
| Dividend Yield | 0.44% | 14.04% | |
| Holdings | 108 | 7 | |
| YTD Return | +16.64% | +4.29% | |
| 1Y Return | +27.27% | +4.49% | |
| 3Y Return (annualized) | +25.96% | - | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 9.8% | |
| Max Drawdown | -83.0% | -6.4% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jul 29, 2025 |
QQQ vs XLUI Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street Utilities Select Sector SPDR Premium Income ETF (XLUI) is a ETF from State Street Investment Management. Over the past year QQQ returned +27.27% while XLUI returned +4.49%. Year to date, QQQ is up 16.64% versus a gain of 4.29% for XLUI.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 9.8% for XLUI. 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 -6.4% for XLUI. 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 -0.01. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while XLUI 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 14.04% for XLUI.
Holdings Overlap
QQQ and XLUI share 0 holdings out of 103 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 XLUI?
QQQ has an expense ratio of 0.18% while XLUI 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 XLUI?
Over the past year QQQ returned +27.27% vs +4.49% for XLUI, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), QQQ annualized +13.03% vs +5.29% for XLUI. Past performance does not guarantee future results.
Which is riskier, QQQ or XLUI?
QQQ has been the more volatile fund at 30.6% annualized versus 9.8% for XLUI. Worst drawdown: QQQ -83.0% vs XLUI -6.4%.
Should I hold both QQQ and XLUI?
QQQ and XLUI have a monthly-return correlation of -0.01, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XLUI?
QQQ and XLUI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, QQQ or XLUI?
QQQ yields 0.44% while XLUI yields 14.04%, so XLUI currently pays the higher dividend yield.
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