QQQ vs XRT
Invesco QQQ Trust, Series 1 vs State Street SPDR S&P Retail ETF
Which is better, QQQ or XRT?
Large Cap Growth against Mid Cap Blend.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. XRT is less concentrated, with 16.7% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | XRT |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.35% |
| AUM | $486.1B | $365M |
| Dividend Yield | 0.44% | 0.75% |
| Holdings | 107 | 77 |
| YTD Return | +17.54%Best | +2.46% |
| 1Y Return | +25.59%Best | +1.52% |
| 3Y Return (annualized) | +24.63%Best | +12.59% |
| 5Y Return (annualized) | +14.18%Best | -0.08% |
| Volatility (annualized) | 18.6%Best | 24.6% |
| Max Drawdown | -53.5%Best | -66.2% |
| $10,000 over 5 years | $19,407Best | $9,960 |
| Top 10 Weight | 46.5% | 16.7%Best |
| Fund Family | Invesco (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Growth | Mid Cap Blend |
| Inception | Mar 10, 1999 | Jun 19, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Jun 22, 2006 to Sep 4, 2026 (20.2 years).
QQQ vs XRT growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 20.2 years both funds cover.
QQQ vs XRT Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and State Street SPDR S&P Retail ETF (XRT) is an ETF from State Street Investment Management. Over the past year QQQ returned +25.59% while XRT returned +1.52%. Year to date, QQQ is up 17.54% versus a gain of 2.46% for XRT.
Over three years, QQQ compounded at +24.63% per year against +12.59% for XRT; over five years the annualized figures are +14.18% and -0.08% respectively. Across the full 20-year window we track, QQQ has the edge at +15.82% annualized vs +8.38%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XRT has been the more volatile fund, with annualized monthly volatility of 24.6% compared with 18.6% 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 -53.5% for QQQ and -66.2% for XRT. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.67. They move together some of the time, and apart the rest.
Fees and Cost Over Time
QQQ charges 0.18% per year while XRT 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 0.75% for XRT.
Holdings Overlap
9.6% of QQQ's money is in holdings XRT also owns. 6.6% of XRT's money is in holdings QQQ also owns.
QQQ and XRT share little of their money.
5 positions in common, counted across the 102 positions we hold weights for in QQQ and 76 in XRT, against full books of 107 and 77.
What only one of them owns
Our book lists 69 positions for XRT that do not appear in our book for QQQ (90.9% of the fund), and 91 for QQQ that do not appear in XRT (87.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of QQQ and XRT you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or XRT?
QQQ has an expense ratio of 0.18% while XRT charges 0.35%. QQQ is the cheaper option, by $17 a year on a $10,000 investment.
Which performed better, QQQ or XRT?
Over the past year QQQ returned +25.59% vs +1.52% for XRT, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +15.82% vs +8.38% for XRT. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or XRT?
XRT has been the more volatile fund at 24.6% annualized versus 18.6% for QQQ. Worst drawdown: QQQ -53.5% vs XRT -66.2%.
Should I hold both QQQ and XRT?
QQQ and XRT have a monthly-return correlation of 0.67, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QQQ and XRT?
9.6% of QQQ's money is in holdings XRT also owns. 6.6% of XRT's is in holdings QQQ also owns. They hold 5 positions in common, counted across the 102 positions we hold weights for in QQQ and 76 in XRT.
Which pays a higher dividend, QQQ or XRT?
QQQ yields 0.44% while XRT yields 0.75%, so XRT currently pays the higher dividend yield.
Is XRT better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. XRT is less concentrated, with 16.7% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.