QQQ vs XTL

Quick Verdict

QQQ has a lower expense ratio. XTL delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: XTLMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQXTLWinner
Expense Ratio0.18%0.35%
AUM$455.8B$573M
Dividend Yield0.41%1.16%
Holdings10842
YTD Return+17.46%+39.43%
1Y Return+26.02%+75.44%
3Y Return (annualized)+25.51%+43.39%
5Y Return (annualized)+15.12%+17.88%
Volatility (annualized)30.6%20.4%
Max Drawdown-83.0%-37.0%
Fund FamilyInvesco (US)State Street Investment Management
CategoryEquityEquity
InceptionMar 10, 1999Jan 26, 2011

QQQ vs XTL Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street SPDR S&P Telecom ETF (XTL) is a ETF from State Street Investment Management. Over the past year QQQ returned +26.02% while XTL returned +75.44%. Year to date, QQQ is up 17.46% versus a gain of 39.43% for XTL.

Over three years, QQQ compounded at +25.51% per year against +43.39% for XTL; over five years the annualized figures are +15.12% and +17.88% respectively. Across the full 16-year window we track, QQQ has the edge at +13.08% annualized vs +10.10%. 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 20.4% for XTL. 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 -37.0% for XTL. 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 0.70. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

QQQ charges 0.18% per year while XTL 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 1.16% for XTL.

Holdings Overlap

2.1%overlap

QQQ and XTL share 1 holdings out of 103 unique holdings combined, representing a 2.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in QQQWeight in XTLDifference
CSCO2.08%3.02%0.94%

Frequently Asked Questions

Which is cheaper, QQQ or XTL?

QQQ has an expense ratio of 0.18% while XTL 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 XTL?

Over the past year QQQ returned +26.02% vs +75.44% for XTL, so XTL leads on 1-year performance. Over the longest common window we track (16 years), QQQ annualized +13.08% vs +10.10% for XTL. Past performance does not guarantee future results.

Which is riskier, QQQ or XTL?

QQQ has been the more volatile fund at 30.6% annualized versus 20.4% for XTL. Worst drawdown: QQQ -83.0% vs XTL -37.0%.

Should I hold both QQQ and XTL?

QQQ and XTL have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and XTL?

QQQ and XTL share 1 common holdings with a 2.1% weight overlap. Combined, they hold 103 unique securities.

Which pays a higher dividend, QQQ or XTL?

QQQ yields 0.41% while XTL yields 1.16%, so XTL currently pays the higher dividend yield.

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