QQQ vs XSD
Invesco QQQ Trust, Series 1 vs State Street SPDR S&P Semiconductor ETF
Quick Verdict
QQQ has a lower expense ratio. XSD delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | XSD | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $496.3B | $2.9B | |
| Dividend Yield | 0.44% | 0.16% | |
| Holdings | 108 | 49 | |
| YTD Return | +17.30% | +54.53% | |
| 1Y Return | +24.93% | +82.90% | |
| 3Y Return (annualized) | +26.19% | +36.57% | |
| 5Y Return (annualized) | +15.34% | +22.80% | |
| Volatility (annualized) | 30.6% | 29.8% | |
| Max Drawdown | -83.0% | -64.9% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jan 31, 2006 |
QQQ vs XSD Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street SPDR S&P Semiconductor ETF (XSD) is a ETF from State Street Investment Management. Over the past year QQQ returned +24.93% while XSD returned +82.90%. Year to date, QQQ is up 17.30% versus a gain of 54.53% for XSD.
Over three years, QQQ compounded at +26.19% per year against +36.57% for XSD; over five years the annualized figures are +15.34% and +22.80% respectively. Across the full 21-year window we track, XSD has the edge at +15.62% annualized vs +13.06%. 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 29.8% for XSD. 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 -64.9% for XSD. 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while XSD 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 0.16% for XSD.
Holdings Overlap
QQQ and XSD share 13 holdings out of 136 unique holdings combined, representing a 17.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or XSD?
QQQ has an expense ratio of 0.18% while XSD 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 XSD?
Over the past year QQQ returned +24.93% vs +82.90% for XSD, so XSD leads on 1-year performance. Over the longest common window we track (21 years), QQQ annualized +13.06% vs +15.62% for XSD. Past performance does not guarantee future results.
Which is riskier, QQQ or XSD?
QQQ has been the more volatile fund at 30.6% annualized versus 29.8% for XSD. Worst drawdown: QQQ -83.0% vs XSD -64.9%.
Should I hold both QQQ and XSD?
QQQ and XSD have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XSD?
QQQ and XSD share 13 common holdings with a 17.7% weight overlap. Combined, they hold 136 unique securities.
Which pays a higher dividend, QQQ or XSD?
QQQ yields 0.44% while XSD yields 0.16%, so QQQ currently pays the higher dividend yield.
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