QQQ vs XLYI
Invesco QQQ Trust, Series 1 vs State Street Consumer Discretionary 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 | XLYI | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $496.3B | $2M | |
| Dividend Yield | 0.44% | 14.77% | |
| Holdings | 108 | 3 | |
| YTD Return | +16.64% | +3.05% | |
| 1Y Return | +27.27% | +6.28% | |
| 3Y Return (annualized) | +25.96% | - | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 11.1% | |
| Max Drawdown | -83.0% | -12.3% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jul 29, 2025 |
QQQ vs XLYI Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street Consumer Discretionary Select Sector SPDR Premium Income ETF (XLYI) is a ETF from State Street Investment Management. Over the past year QQQ returned +27.27% while XLYI returned +6.28%. Year to date, QQQ is up 16.64% versus a gain of 3.05% for XLYI.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 11.1% for XLYI. 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 -12.3% for XLYI. 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while XLYI 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 14.77% for XLYI.
Holdings Overlap
QQQ and XLYI 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 XLYI?
QQQ has an expense ratio of 0.18% while XLYI 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 XLYI?
Over the past year QQQ returned +27.27% vs +6.28% for XLYI, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), QQQ annualized +13.03% vs +7.92% for XLYI. Past performance does not guarantee future results.
Which is riskier, QQQ or XLYI?
QQQ has been the more volatile fund at 30.6% annualized versus 11.1% for XLYI. Worst drawdown: QQQ -83.0% vs XLYI -12.3%.
Should I hold both QQQ and XLYI?
QQQ and XLYI have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XLYI?
QQQ and XLYI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, QQQ or XLYI?
QQQ yields 0.44% while XLYI yields 14.77%, so XLYI currently pays the higher dividend yield.
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