QQQ vs XME
Invesco QQQ Trust, Series 1 vs State Street SPDR S&P Metals & Mining ETF
Quick Verdict
QQQ has a lower expense ratio. XME delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | XME | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $496.3B | $4.5B | |
| Dividend Yield | 0.44% | 0.37% | |
| Holdings | 108 | 41 | |
| YTD Return | +16.64% | +11.13% | |
| 1Y Return | +27.27% | +54.57% | |
| 3Y Return (annualized) | +25.96% | +33.40% | |
| 5Y Return (annualized) | +14.54% | +23.67% | |
| Volatility (annualized) | 30.6% | 34.6% | |
| Max Drawdown | -83.0% | -87.3% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jun 19, 2006 |
QQQ vs XME Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street SPDR S&P Metals & Mining ETF (XME) is a ETF from State Street Investment Management. Over the past year QQQ returned +27.27% while XME returned +54.57%. Year to date, QQQ is up 16.64% versus a gain of 11.13% for XME.
Over three years, QQQ compounded at +25.96% per year against +33.40% for XME; over five years the annualized figures are +14.54% and +23.67% respectively. Across the full 20-year window we track, QQQ has the edge at +13.03% annualized vs +5.19%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XME has been the more volatile fund, with annualized monthly volatility of 34.6% compared with 30.6% for QQQ. 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 -87.3% for XME. 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while XME 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 0.37% for XME.
Holdings Overlap
QQQ and XME share 0 holdings out of 142 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 XME?
QQQ has an expense ratio of 0.18% while XME 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 XME?
Over the past year QQQ returned +27.27% vs +54.57% for XME, so XME leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +13.03% vs +5.19% for XME. Past performance does not guarantee future results.
Which is riskier, QQQ or XME?
XME has been the more volatile fund at 34.6% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs XME -87.3%.
Should I hold both QQQ and XME?
QQQ and XME have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XME?
QQQ and XME share 0 common holdings with a 0.0% weight overlap. Combined, they hold 142 unique securities.
Which pays a higher dividend, QQQ or XME?
QQQ yields 0.44% while XME yields 0.37%, so QQQ currently pays the higher dividend yield.
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