QQQ vs XOP
Invesco QQQ Trust, Series 1 vs State Street SPDR S&P Oil & Gas Exploration & Production ETF
Quick Verdict
QQQ has a lower expense ratio. XOP delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | XOP | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $496.3B | $3.7B | |
| Dividend Yield | 0.44% | 1.83% | |
| Holdings | 108 | 54 | |
| YTD Return | +16.64% | +48.29% | |
| 1Y Return | +27.27% | +55.96% | |
| 3Y Return (annualized) | +25.96% | +11.33% | |
| 5Y Return (annualized) | +14.54% | +22.56% | |
| Volatility (annualized) | 30.6% | 37.1% | |
| Max Drawdown | -83.0% | -91.0% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jun 19, 2006 |
QQQ vs XOP Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street SPDR S&P Oil & Gas Exploration & Production ETF (XOP) is a ETF from State Street Investment Management. Over the past year QQQ returned +27.27% while XOP returned +55.96%. Year to date, QQQ is up 16.64% versus a gain of 48.29% for XOP.
Over three years, QQQ compounded at +25.96% per year against +11.33% for XOP; over five years the annualized figures are +14.54% and +22.56% respectively. Across the full 20-year window we track, QQQ has the edge at +13.03% annualized vs +2.20%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XOP has been the more volatile fund, with annualized monthly volatility of 37.1% 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 -91.0% for XOP. 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while XOP 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 1.83% for XOP.
Holdings Overlap
QQQ and XOP share 1 holdings out of 153 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in XOP | Difference |
|---|---|---|---|
| FANG | 0.23% | 2.41% | 2.18% |
Frequently Asked Questions
Which is cheaper, QQQ or XOP?
QQQ has an expense ratio of 0.18% while XOP 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 XOP?
Over the past year QQQ returned +27.27% vs +55.96% for XOP, so XOP leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +13.03% vs +2.20% for XOP. Past performance does not guarantee future results.
Which is riskier, QQQ or XOP?
XOP has been the more volatile fund at 37.1% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs XOP -91.0%.
Should I hold both QQQ and XOP?
QQQ and XOP have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XOP?
QQQ and XOP share 1 common holdings with a 0.2% weight overlap. Combined, they hold 153 unique securities.
Which pays a higher dividend, QQQ or XOP?
QQQ yields 0.44% while XOP yields 1.83%, so XOP currently pays the higher dividend yield.
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