QQQ vs XPH
Invesco QQQ Trust, Series 1 vs State Street SPDR S&P Pharmaceuticals ETF
Quick Verdict
QQQ has a lower expense ratio. XPH delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | XPH | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $455.8B | $479M | |
| Dividend Yield | 0.41% | 0.51% | |
| Holdings | 108 | 67 | |
| YTD Return | +19.68% | +27.02% | |
| 1Y Return | +26.75% | +54.31% | |
| 3Y Return (annualized) | +26.25% | +18.44% | |
| 5Y Return (annualized) | +15.39% | +8.21% | |
| Volatility (annualized) | 30.6% | 19.4% | |
| Max Drawdown | -83.0% | -52.7% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jun 19, 2006 |
QQQ vs XPH Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street SPDR S&P Pharmaceuticals ETF (XPH) is a ETF from State Street Investment Management. Over the past year QQQ returned +26.75% while XPH returned +54.31%. Year to date, QQQ is up 19.68% versus a gain of 27.02% for XPH.
Over three years, QQQ compounded at +26.25% per year against +18.44% for XPH; over five years the annualized figures are +15.39% and +8.21% respectively. Across the full 20-year window we track, QQQ has the edge at +13.15% annualized vs +8.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 19.4% for XPH. 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 -52.7% for XPH. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while XPH 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 0.41% against 0.51% for XPH.
Holdings Overlap
QQQ and XPH share 0 holdings out of 163 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 XPH?
QQQ has an expense ratio of 0.18% while XPH 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 XPH?
Over the past year QQQ returned +26.75% vs +54.31% for XPH, so XPH leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +13.15% vs +8.07% for XPH. Past performance does not guarantee future results.
Which is riskier, QQQ or XPH?
QQQ has been the more volatile fund at 30.6% annualized versus 19.4% for XPH. Worst drawdown: QQQ -83.0% vs XPH -52.7%.
Should I hold both QQQ and XPH?
QQQ and XPH have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XPH?
QQQ and XPH share 0 common holdings with a 0.0% weight overlap. Combined, they hold 163 unique securities.
Which pays a higher dividend, QQQ or XPH?
QQQ yields 0.41% while XPH yields 0.51%, so XPH currently pays the higher dividend yield.
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