QQQ vs XRT
Invesco QQQ Trust, Series 1 vs State Street SPDR S&P Retail ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | XRT | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $455.8B | $524M | |
| Dividend Yield | 0.41% | 0.77% | |
| Holdings | 108 | 77 | |
| YTD Return | +18.31% | +3.86% | |
| 1Y Return | +25.37% | +7.53% | |
| 3Y Return (annualized) | +25.79% | +11.42% | |
| 5Y Return (annualized) | +15.20% | -0.30% | |
| Volatility (annualized) | 30.6% | 24.6% | |
| Max Drawdown | -83.0% | -66.2% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jun 19, 2006 |
QQQ vs XRT Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street SPDR S&P Retail ETF (XRT) is a ETF from State Street Investment Management. Over the past year QQQ returned +25.37% while XRT returned +7.53%. Year to date, QQQ is up 18.31% versus a gain of 3.86% for XRT.
Over three years, QQQ compounded at +25.79% per year against +11.42% for XRT; over five years the annualized figures are +15.20% and -0.30% respectively. Across the full 20-year window we track, QQQ has the edge at +13.10% annualized vs +8.48%. 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 24.6% for XRT. 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 -66.2% for XRT. 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
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 0.41% against 0.77% for XRT.
Holdings Overlap
QQQ and XRT share 1 holdings out of 111 unique holdings combined, representing a 1.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in XRT | Difference |
|---|---|---|---|
| AMZN | 4.26% | 1.39% | 2.87% |
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. On a $10,000 investment, that is $17 per year of difference.
Which performed better, QQQ or XRT?
Over the past year QQQ returned +25.37% vs +7.53% for XRT, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +13.10% vs +8.48% for XRT. Past performance does not guarantee future results.
Which is riskier, QQQ or XRT?
QQQ has been the more volatile fund at 30.6% annualized versus 24.6% for XRT. Worst drawdown: QQQ -83.0% vs XRT -66.2%.
Should I hold both QQQ and XRT?
QQQ and XRT have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XRT?
QQQ and XRT share 1 common holdings with a 1.4% weight overlap. Combined, they hold 111 unique securities.
Which pays a higher dividend, QQQ or XRT?
QQQ yields 0.41% while XRT yields 0.77%, so XRT currently pays the higher dividend yield.
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